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Presentation Outline What is a Budget? How is YNAB Different? Common Budgeting Myths and Four Rules of Cash Flow Step by Step Demonstration Your Questions!

Not covered tonight Cash Credit Cards Savings Accounts Business Accounts

Presentation Outline What is a Budget? How is YNAB Different? Common Budgeting Myths and Four Rules of Cash Flow Step by Step Demonstration Your Questions!

What does the word “Budget” mean to you?

A PLAN for your money

Remove yourself from the financial edge.

Increase Awareness.

Lower your stress level.

Presentation Outline What is a Budget? How is YNAB Different? Common Budgeting Myths and Four Rules of Cash Flow Step by Step Demonstration Your Questions!

A tested set of rules designed to improve cash flow

Budget - Focused This is where the action is!

Beautiful software that’s easy to use

Presentation Outline What is a Budget? How is YNAB Different? Common Budgeting Myths and Four Rules of Cash Flow Step by Step Demonstration Your Questions!

“It’s impossible to know what to budget for.” Myth #1

Rule One Give Every Dollar A Job!

Set up job descriptions for your money. We call these Categories.

YNAB comes pre-loaded with some pre-set categories... Master Categories are bold Sub-Categories are underneath...but you can make your own to fit your needs.

Give Every Dollar a Job!

I’ve given every dollar a job!

However...I haven’t given every job a dollar...

When you are first starting out you’ll need to budget each paycheck as it arrives, prioritizing as you go...

You will keep track of three things : How much you budgeted How much you spent How much you have left

Not all categories are the same... One Transaction each month Electric Bill Mortgage Phone Bill Car Payment

Not all categories are the same... Multiple Transactions each month Groceries Gas Entertainment

At the beginning of the month you budget $300 toward groceries.

On the 5th, you go shopping and spend $175. You enter the transaction in your register, and the budget is updated automatically.

You go shopping again on the 23rd and spend $95 more... YNAB keeps track of the category balance for you.

You make one more small trip, and the category is zeroed out.

Spending decisions are made by focusing on the Category Balance.

...instead of the Bank Balance X

Everyone wants your money.

You need a better tool to use against that than a Bank Balance! X

Myth Two “There are too many unexpected things that come up that you just can’t budget for.”

Save for a Rainy Day Rule Two

Rainy Days are expenses that occur outside of your normal monthly expenses.

Predictable Rainy Days We know when it will rain, because it was forecast.

It’s April now, and you have a car insurance payment due in June. Let’s take car insurance as an example.

So you have 3 months to come up with $600.

At the end of May, you have $400.

So you have 3 months to come up with $600. At the end of June, you have $600.

You can easily pay the bill. So you have 3 months to come up with $600.

Unpredictable Rainy Days We don’t know when it will rain, but we know for sure that it will.

Let’s take car repairs as an example.

“I keep overspending my budget – and that shows that budgets don’t work” Myth 3 BANG HEAD HERE

Roll with the Punches Rule Three

You budgeted $25 into your gift category for November......but forgot a friend’s birthday.

Your friend has very expensive tastes…...and you overspent your Gifts Category by $50.

Key point: You overspent your Gifts Category by $50 You didn’t overdraft at the bank, you just spent more than you planned in this ONE category.

Whether your overspending was a mistake... an accident... or a choice... YNAB helps you make an adjustment to start the next month fresh.

YNAB automatically subtracts the overspending from next month’s money.

Cash flow is no longer an issue. You are just “borrowing” from yourself.

“I can barely make it from paycheck to paycheck - having a monthly budget will never work.” Myth 4

Stop Living Paycheck to Paycheck Rule Four

YNAB will help you work towards living on last month’s income. Buffer

Live on last month’s income

You are working with a known number so there is no guesswork. ?

You no longer have to wrack your brain timing your paychecks with your bills.

It provides a cushion that removes you from the paycheck to paycheck cycle.

“It’ll take too much time to budget.” Myth 5

Give Every Dollar a Job By following Rule One you don’t have to wonder each paycheck where the money’s going. It already has a job.

Save for a Rainy Day You don’t have to scramble when an unexpected expense comes along, because you’ve followed Rule Two and prepared.

Roll with the Punches Since you follow Rule Three and just roll with occasional punches, little things don’t get to you and that saves time spent stressing over what to do.

Stop Living Paycheck to Paycheck When you are living under Rule Four, you can pay all the bills at once on the first of the month.

“I don’t want to feel restricted and controlled by the budget.” Myth 6

“I don’t want to feel restricted and controlled by the budget.” Myth 6

How do you feel now?

Restricted by your current financial situation?

Controlled by a lack of money?

...or maybe you’re just feeling disorganized?

Presentation Outline What is a Budget? How is YNAB Different? Common Budgeting Myths and Four Rules of Cash Flow Step by Step Demonstration Your Questions!

Step 1: Calling All Cash! How much money do you have on hand right now to start with?

When first starting out, keep it simple. Less is More. Step 2: Deciding on Categories Groceries RentGas

Step 3: Dig out a Calendar and your Bills Figure out what’s due and when. Prioritize.

Always enter income FIRST, then budget it. Step 4: Create your budget.

You can’t budget money you don’t have.

You will keep track of three things : How much you budgeted How much you spent How much you have left

Presentation Outline What is a Budget? How is YNAB Different? Common Budgeting Myths and Four Rules of Cash Flow Step by Step Demonstration Your Questions!

Inline Help You can search for any topic. Inline Help You can search for any topic. More Resources

Video Tutorials

YNAB Community Forums 1. Quick Responses from different perspectives 2. Good, kind, knowledgeable people 3. Community Support in reaching your goals ynab.com/forum

Lots of FREE Webinars!

If you are interested: Cost: $69.95 One hour phone conference and Private Webinar One on One Coaching Order at:

Time using YNABTurn Around After 1 Month$200 After 3 Months$450 After 6 Months$850 After 9 Months$3,300 Will there be a return on your investment?