The Masters of Personal Finance Will See You Now

This post is an adaptation of YNAB’s fan-favorite newsletter, Loose Change. Sign up for more where this came from.

You actually don’t need to watch CNBC to become a master of personal finance. Being ‘good’ with money mostly comes down to two qualities: awareness and intention. Whether your expertise is mostly in medieval poetry, you struggled through high school, or never read a lick about passive income, you absolutely have what it takes.

In fact, a highly paid expert, broadcasting from a heavily air-conditioned TV studio in Manhattan, cannot direct your money as well as you can. They may know the markets, but they don’t know you, your needs, or what you want your life to look like. You may not either at the moment, but you will. This is only the second paragraph.

Enter Awareness (played in the voice of Joe Pesci): How much money are we talking here?

Before you decide how to spend your money, you better know how much you have. Otherwise, you’re driving your car without a fuel gauge. Perhaps thrilling for like five seconds, but mostly stressful.

Once you know how much money you have to your name (an app can automatically calculate this and keep it up-to-date), it’s time to invite that other quality…

Enter Intention (played by a day actor to keep overall production costs down): How do you want to spend your precious dollars?

Great question! And one you will be answering the rest of your life. It’s time to give every dollar a job. Some of your money gets set aside for upcoming bills and expenses, some for a cruise, some for your father’s 80^th, until you give every dollar a job.

It’s a simple but profound practice. No longer can you vaguely entertain the idea that you could spend your next paycheck five different ways. You realize that, just as with time, you can’t do everything. So you start to discover what’s truly important to you.

If you spring for all the upgrades in your new car, you’ll have less to spend on the patio furniture you’re planning to replace. Trade-offs, baby™.

There’s nothing wrong with learning from experts (my dad is probably watching CNBC right now). Just remember that it really is about awareness and intention.

After watching CNBC, you might have the intention to invest more in the stock market (or dunk your head in a bucket of cold water). But the practice of giving every dollar a job is how you test your intention and see how much you care about something. Will you regularly spend less on eating out so that you can buy a pool?

Let’s see how it goes for a couple months. Do you feel greater or lesser alignment? The answers are not held by a privileged few; they are to be found in real life.

‍Worried about money? You’re not alone. Get YNAB, get good with money, and never worry about money again. It’s free for 34 days!

Good With Money: A Look at Real YNABers

This week’s dispatch is hot off the printing press from Rachel, a historical interpreter in Williamsburg, Virginia.

“YNAB came into my life at just the right time and has helped me through the pandemic and beyond. I am so glad that my lack of budget inspired my then-acquaintances to tell me all about YNAB. Without their kindness, patience, and guidance, I would have been much worse off when the world shut down. I am so grateful to my now close friends for introducing me to YNAB.”

‍What tradeoffs did you make to prioritize the important stuff?
‍“I limited my monthly fun money allowance so I could put it toward debt pay down or funding future fun like trips/vacations. This also was in line with my minimalist lifestyle so I didn’t have extra money to spend on stuff. I was driven to save for experiences and cushions of money for future me.

I think it has been fun to watch my priorities change over time as new things enter my life. I now have a category for dates and presents for my partner. I recently made a cat wellness category. Yay new pets/friends! For a long time, making sure I overfunded my car loan payment was a huge priority so I could get out of debt. I am so happy that it’s now a hidden category. Yay for being debt-free!”

Rachel shares more: 
‍I was able to pay off my car loan early
I have guilt-free money for travel
I was able to move to a bigger apartment
I was able to get a cat 🙂

#1 thing you’re saving for right now?
Travel.

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