You Need a Budget by Jesse Mecham

Author:Jesse Mecham
Language: eng
Format: epub, mobi
Publisher: HarperCollins
Published: 2017-10-31T04:00:00+00:00

Not Just for the Superrich

I know aging your money can seem impossible if you’re in debt or living paycheck to paycheck. Every dollar tends to already be claimed before it even hits your account. But really anyone can do this, no matter what your money situation.

If you want to be very intentional about aging your money, you can save for it separately. Know you spend $4,000 in a typical month? Chip away at saving $4,000. When you hit your goal, use that money at the start of a new month instead of your upcoming paycheck. There—now your money is thirty days old.

Whatever your approach, achieving your Rule Four goal boils down to consistently spending less than you earn. You’ve heard this before, I know. It’s like being told that diet and exercise will help you lose weight. But both are true. Just like getting healthier, it helps to have a structure in place to get you there. In this case that structure is YNAB’s rules.

Aging your money is really just a by-product of following Rules One through Three:

Rule One makes you more aware of what your money is doing and helps you to stop spending on things that aren’t important to you. This gets you on the fast track to spending less than you earn.

Rule Two has a huge influence on the age of your money because it gets you saving for longer-term expenses. Since that money doesn’t get spent right away, it sits there and grows old. Rule Two also helps you see that some future obligations are more important than current “wants.” Setting money aside for next month’s rent instead of eating out for lunch at work this week is deferring the use of your money. Those tiny decisions help keep your money in-hand, where it can sit and age.

And Rule Three keeps you adjusting and adapting, which will keep you budgeting over the long haul. Your money won’t get a chance to age if you don’t stay in the game for a while. Rule Three also keeps you accountable to the ultimate bottom line—which keeps you from going backward.

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