I used to think that I had to become a completely different person to be more financially stable and more knowledgeable. If I just think differently, follow the rules, and stick with it (no matter what), one day I will wake up feeling great and completely in control of my finances.
Thinking this way for too long was my first mistake.
Budgeting is not a one-size-fits-all solution. My financial situation and spending habits are different from my husband’s. I think differently about money than my sister. Budgets are very personal and not all of us will succeed within a strict limit of predefined categories and recommended budget allocations.
Over the years, I’ve developed a better relationship with money and learned to create a budget that works for me.
I’ve been using YNAB for a few years now and I fully credit them for making budgeting so simple and dare I say fun(ish).
I want to start the new year with a new budget. I sat down, reviewed my spending habits, and adjusted my New Year’s budget accordingly. With the help of YNAB, I can now do this activity without feeling ashamed or guilty. Using YNAB has given me the space to be curious about my spending instead of feeling embarrassed about it. By taking a closer look at the numbers, I was able to notice things, see patterns and, if necessary, make slight adjustments. No need for a complete overhaul.
Here are a few things I’ll be changing this year when it comes to my budgeting approach:
- Organize in a way that makes sense to me. I used to train my spending habits into specific categories because I thought that would make me “super organized.” Turns out, I don’t pepper like a “super organized” person. With YNAB, I can customize the labels and organize the data to suit me. For example, I have an “Amazon” category to track all the purchases made on Amazon. I don’t think about “grocery” or “entertainment,” but I can budget and allocate to the larger “Amazon” category. This way, I won’t spend precious hours breaking down purchases into categories that make no sense to my life. There is no “right” or “wrong” way to budget, only “YOUR” way.
- Plan my current scenario. YNAB helped me start saving small (with the money I had), so I could save big. Instead of budgeting for large projects or unachievable purchases, I set smaller goals to achieve first. These smaller goals are grouped into larger goals and more important numbers. Example: I don’t think I can budget to remodel an entire kitchen without giving up right away. Instead of planning the entire project, I budget for individual elements like “dishwasher”, “paint” and “flooring”. I like to take things off my list and seeing when I hit these smaller milestones gives me confidence that I can hit the bigger ones.
- Remember it’s a marathon, not a sprint. When I’m excited, I rush in first. I participate, and I commit. This enthusiasm usually lasts several weeks before I feel bored, overwhelmed, or both. Instead of putting all my energy into budgeting right away, I spent an hour every Sunday doing deals. Taking the time each week, I avoid feeling exhausted from reading every day and feeling “what was on my mind” when I just check in every month. It’s all about balance.
- Stop worrying about the budget. Remember that phase of burnout that I was just discussing avoiding? If I need to skip or adjust the frequency of reviewing transactions, I can. The budget is set, and I can start where I left off without a headache. When I come back, my budget will remain the same and I can start shipping with a new set of eyes.
- Remember that community is everything. There is no shortage of resources available with YNAB. From tutorials, to blogs, podcasts, to videos, YNAB has everything you need at your fingertips to manage your finances in a way that suits YOUR personality and spending habits. YNABers are everywhere, and this community helped me navigate some of the knots in my budgeting journey.
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Despite receiving compensation in exchange for insurance, all thoughts and opinions are always my own. Sponsored posts like this allow us to continue developing uncensored dynamic content. Thank you very much for your support!
Kate is currently learning to play the ukulele, leaving her husband, children and dogs desperate. Follow her on Instagram at @witanddelight_.
