What is You Need a Budget (YNAB), and why should you consider it?

YNAB (pronounced “why-nab”) is a method and a platform for budgeting that centers on four rules:

1. Give every dollar a job.

2. Embrace your true expenses.

3. Roll with the punches.

4. Age your money (for example, pay this month’s expenses with last month’s income).

Why do I like YNAB so much?

• The four rules create enough structure to build habits that feel automatic fairly early in the budgeting journey—but this structure is flexible enough that I don’t feel tempted to break the rules for the sake of breaking the rules…ever. (This is very unusual for me!)

• Before YNAB, “budgeting” was like “dieting” in my mind—about deprivation and scarcity rather than abundance (though of course the false “abundance” of a high credit card limit created a lot more deprivation than a budget would have!). In its tracking functions, YNAB brings clarity about spending, while in its planning functions, it provides inspiration and hope—even if debt pay-down can take a while.

• Even when my budget looked dire—as it did in the early days and again during pandemic unemployment—I felt a sense of empowerment because I could make choices from a place of knowledge rather than guesswork. Turns out money knowledge (even when it’s not ideal) is a lot less stressful than pulling out the VISA and hoping for the best. Who knew?!?

• After having been a YNAB fan for years, I was delighted to discover that their materials show a commitment to inclusivity (including some training scenarios with characters who use they/them pronouns!). In my multiple encounters with them, the team behind YNAB has been smart and sweet in equal measure. I love the product, and this knowledge helps me feel even better about sending my subscription dollars to the company.

• But mainly? This method has made such a profound difference in my life that I am a fervent advocate for it. It may not work for every budgeter, but on average, YNAB users come out $600 ahead just in the first two months and $6,000 ahead in their first year (read some actual success stories). I wasn’t keeping track in the first year, but I suspect I easily hit these average numbers—on a salary just above $50K.