1 Make sure you turn up the speakers on your computer are turned up so you can hear my voice You need to be able to hear me as well as see the presentation for this to be useful for you. There is no phone number to call, you will just listen through your computer. Important Info

Group Coaching Intro to YNAB

3 Let’s look around the classroom You will not be able to talk to me over the computer, only listen. But, you can text me questions. GotoWebinar Viewer GotoWebinar Control Panel Q&A Window If you get disconnected, you can just reconnect from the same link

4 A few housekeeping items Please try to hold questions until I ask for them. I will try to leave time for Open Q & A at the end. You may want to have a piece of paper and pencil nearby to take some notes. We will take a 5 minute break at some point during the presentation. You don't need to hang up the phone on the break.

5 Class Materials Following tonight's class you will receive a follow-up from gotowebinar. It will include this link to class materials: ynab.com/support/ynab-coaching/class-workbook-download

6 Class Materials Copy of Jesse's book “The YNAB Way” Class Workbook to get you started PDF of the Powerpoint Document explaining how to start in Overdraft

What we will cover What is a budget? Common Budgeting Myths 4 Rules of Cash Flow Rule One -Stop Living Paycheck to Paycheck Rule Two - Give Every Dollar a Job Rule Three - Prepare for Rain Rule Four - Roll with the Punches Introduction to Software designed to implement these rules Step by Step Demonstration of how to start your budget

What I'll cover in the demo: 82 Setting up Accounts Entering Income Changing Categories Budgeting to Zero Recording Outflows How YNAB deals with overspending Transferring between accounts Tweaking the budget How to Import transactions Transferring to Rule One once you get your buffer

9 Make sure you turn up the speakers on your computer are turned up so you can hear my voice You need to be able to hear me as well as see the presentation for this to be useful for you. There is no phone number to call, you will just listen through your computer. Last reminder

What is a budget? A PLAN for your money

Why Budget anyway? Remove yourself from the financial edge Understand what you can really afford Lower your stress level about money

But I can’t budget! Let’s look at some common budgeting Myths

“I can’t budget, my income is variable, so I never know what I’m going to make.” Myth 1 Solution...

Stop Living Paycheck to Paycheck Rule 1

Live on last month’s income How?

Why 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

The Buffer One month’s expenses is referred to as:

16

What if I don’t have a buffer? YES Can I still use the YNAB method?

“I’m not sure how to budget or what to budget for.” Myth 2 Solution...

Give Every Dollar a Job Rule 2

Think of your household finances as a business. You are the boss, the dollars are your employees.

Then let your Manager (the budget) keep them in line The first step toward that is deciding on job descriptions, also known as Spending Categories You need to be the Boss of your employee dollars

Spending Categories Anything you spend money on can be divided up into categories: Mortgage/Rent Car Payment Groceries Light Bill Internet Cable Bill Heating Bill Phone Car Insurance Entertainment Savings

28 Welcome to the world of ZERO BASED BUDGETING! Available Remaining$775 Heating Bill-$300 Available Remaining$475 Phone Bill-$100 Available Remaining$375 Car Insurance-$100 Available Remaining$275 Light Bill-$75 Available Remaining$200 Entertainment-$200 Available Remaining$0

30 As each month goes along, you will keep track of three things: The amount you Budgeted in each Category The amount you’ve Spent in each Category The amount Remaining in each Category

Just remember the... EGG! Entertainment Gas Groceries Those are the “Big 3” you need to keep track of. Many expenses are one time expenses, but these three will have multiple transactions each month.

Let’s take groceries as an example: Budgeted at the start of the month$300 January 5th Grocery Shopping-$175 Amount left in the Groceries Category $125 January 23rd Grocery Shopping-$95 Amount left in the Groceries Category $30 January 29th Grocery Shopping-$30 Amount left in the Groceries Category $0

32

“There are too many unexpected things that come up that you just can’t budget for.” Myth 3 Solution...

Prepare for Rain Rule 3

39 Types of Rainy Days Predictable - We know when it will rain, because it was forecast. Unpredictable - We don’t know when it will rain, but we know for sure that it will. Car Insurance, Property Taxes, Car Registration, Home Heating Oil Car Repairs, Medical Bills, Home Repairs

Let’s take car insurance as an example It’s January now, and you have a $300 payment due in June. This rain is forecast.

Get out your umbrella! MonthBudgetedSpentBalance January$50$0$50 February$50$0$100 March$50$0$150 April$50$0$200 May$50$0$250 June$50$0$300

It’s June, get out your checkbook No worries, the money is right there June$50$300$0 MonthBudgetedSpentBalance

“I just end up going over budget and that makes me want to scrap the whole thing.” Myth 4 Solution...

Rule 4 Roll with the punches

Let’s use an example So Roll with it You budgeted $25 into your gift category for November, but forgot a friend’s birthday Your friend has very expensive tastes… You overspent your Gifts Category by $50

How?...before you even begin next month’s budget. Simple. Correct it…

Let’s take a look at how it works In November you overspent by $50 Now it’s December 1st. You have $3000 to budget. First subtract the $50. THEN go through your budget, giving every dollar a job. December - Available to Budget$3,000 Minus Overspending from November- $50 TRUE AVAILABLE FOR DECEMBER$2,950

Remember...  You have next month’s money coming in this month  You have categories that have not been depleted.  You have rainy days funds building as well. You’ll be able to handle an occasional punch thrown your way In other words, cash flow is no longer an issue, so you can “borrow” from yourself

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

YNAB saves time How?

When you are living under Rule #1, you can pay all the bills at once on the first of the month. That’s it You’re done Stop Living Paycheck to Paycheck

58 Give Every Dollar a Job By following Rule #2 you don’t have to wonder each paycheck where the money’s going. It already has a job.

59 Prepare for Rain You don’t have to scramble when an unexpected expense comes along, because you’ve followed Rule #3 and prepared.

60 Since you follow Rule #4 and just roll with occasional punches, little things don’t get to you and that saves time spent stressing over what to do. Roll with the Punches

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

How do you feel now?

52 What if I have a budget file already? I recommend a fresh start for a couple of reasons: A fresh start is just a good thing. If it’s not reconciled now, you will spend hours chasing numbers you’ll never find. You can still keep the old file for reference, so you haven't lost anything, but it’s imperative your numbers be right from this point on.

Getting Started Here are some steps to get you started in creating your own monthly budget.

In order to get started budgeting you need to find out exactly how much money you have within your control right now. Using the form on the right as your guide, add up all of the current balances in all of your various bank accounts as well as a total of the cash you have right now. Be careful not to include money that is already spoken for like a check that has yet to clear the bank. Also avoid adding in any lines of credit. Budgeting is a plan for your money not borrowing. Step 1: Calling All Cash!

Step 2: Deciding on Categories Remember, before you can begin budgeting you need to decide on spending categories. Categories are like job descriptions for your money. In order to be able to put a plan in place for your money you need to identify different outflows in different ways to help organize them. A Category is a label placed on a transaction to identify what it was for. Using the checklist on the right (and creating additional choices as they apply to you and your family) determine the categories you will need. You will transfer them onto the budget worksheet a little later.

Step 3: Dig out a Calendar & Your Bills Locate recent copies of your billing statements (paid or not) and make note of the regular due dates and amounts owed. Don’t be too concerned if the amounts fluctuate, just put down what the bill averages if it’s not a set amount. Once you have a good idea of when these bills are due and roughly how much you need to pay then you can transfer them to a calendar where you can see at a glance how they are spaced out and also to serve as a reminder of when you need to pay them.

71 Once you have determined your Available income and your bill- paying schedule, you will begin to create your budget. You will always enter income FIRST, then budget it to zero Step 4: Your First Budget Meeting

Step 5: Record Everything That You Spend The amount you Budgeted in each Category The amount you’ve Spent in each Category The amount Remaining in each Category Remember, as each month goes along, you will keep track of three things:

What I'll cover in the demo: 82 Setting up Accounts Entering Income Changing Categories Budgeting to Zero Recording Outflows Dealing with Cash Dealing with Credit Cards A shortcut to reconciliation How YNAB deals with overspending Transferring between accounts Tweaking the budget How to Import transactions Transferring to Rule One once you get your buffer

Resources at: Forums Wiki FAQs Blog - Articles Online Video Tutorials Want more info?

Group Coaching Survey We'd appreciate some feedback on these webinars so we can improve them in the future.

One on One Coaching Individualized Attention Solutions focused toward your situation Sessions scheduled at your convenience

One on One Coaching Based on a survey of 1100 YNAB users: On average, a YNAB user pays off $500 in debt and saves $235 in the first 31 days! That's a $735 change in just one month!

One on One Coaching Basic Coaching Startup Consultation 1 hour webinar $69.95 (you'll be able to talk to me on the phone)

One on One Coaching A personal coach gives you the best chance to get things going right and increase savings and decrease debt. Got questions about the One on One Coaching? me at: