YNAB (You Need A Budget)

Discussion in 'Finance, Investments, and Careers' started by Superbone, Sep 14, 2013.

  1. dreamcastrocks

    dreamcastrocks Chopped Liver Moderator Contributor

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    There is no tax hit if you pay off your loan on time and/or keep your job. If I would have lost my job I would have pay back the loan in full within 60 days or pay taxes using my current tax bracket plus a 10% penalty for early distribution of retirement savings.

    It was easily worth it given the 7.5 and 11% interest I had on my car notes vs the 4% interest I was paying myself back. Not to mention I had lost 15% of my 401k balance in the year that I took out the loan; it was a way to curb my losses.
     
    Last edited: Sep 17, 2013
  2. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    Yeah, I think I get $6 and the person gets $6 off. Not the reason I started the thread. I really believe in the software and it made a huge difference in my life. Link removed.
     
  3. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    I didn't think there was a tax hit. It's your money and you're paying yourself interest inside of your retirement account that doesn't get hit with taxes in a traditional 401K anyway, until you withdraw money at the end. I've thought about doing it to pay down my 7.5% second mortgage but I'm planning on moving in less than two years and selling the house.
     
  4. Linderbee

    Linderbee Let's GO, CARDINALS! Contributor

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    I knew it had to be something. My memory just sucks, lol.
     
  5. Gaddabout

    Gaddabout Plucky Comic Relief Contributor

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    [​IMG]
     
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  6. Gaddabout

    Gaddabout Plucky Comic Relief Contributor

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    Good info. Yeah, I was forced to do something with my 401K when I left my job. I had forgotten I had it (!!!) and we were desperate for cash as we transitioned to new jobs. I cashed it out and paid the penalty. I didn't have a job in which I could roll it over.
     
  7. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    That trombone has some HISTORY!
     
  8. RugbyMuffin

    RugbyMuffin Uh,huhuhuhuhuh

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    The point of the thread is excellent.

    #1. The minute you make a budget, you instantly have more money.

    #2. There are a bunch of budget software programs out there to help, but excel can do the job as well.

    Both are big points that I would recommend to anyone, especially if you are living pay check to pay check. IMO. the less extra money you have then more the reason to budget your finances.

    Finally, it only works if you make a fearless, truthful assessment of your finances and your spending.
     
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  9. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    Yep, rather than thinking of it as a budget, which sounds restrictive, think of it as a spending plan. You plan how you're going to spend and save your money within the confines of your income. It's a way to get control over your money rather than letting your money control you.
     
  10. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    As far as doing it on paper, using spreadsheets, or other software, sure you can do it but I'm just telling everyone what a fantastic tool YNAB has been in my life and I don't know if I would have been as successful using other methods. And I did try and fail previously. It's not just about doing it but knowing how to do it successfully. The YNAB software has a method that drives the software and that is what makes it so successful for people.

    Here's an example of a person who failed with previous budgeting attempts before trying YNAB:

    http://forum.youneedabudget.com/discussion/24792/automatic-bill-pay

    It's funny trying to talk to people about budgeting though. They don't want to hear it or talk about it. Heck, I can't even get my brother to try the software and he really needs it!
     
  11. RugbyMuffin

    RugbyMuffin Uh,huhuhuhuhuh

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    Good stuff.

    Whatever it takes.
     
  12. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    Yep, budgeting is the foundation of one's financial well being. Once you have that under control, you can get out of debt, pay off your house, invest or whatever is most important to you. I will never have a car loan again.
     
  13. Gaddabout

    Gaddabout Plucky Comic Relief Contributor

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    My fiancee' kept her car from college and paid herself a car payment each month from her first job. Paid cash for her next car, kept it for 9 years. Stayed with the formula. The car finally caught on fire (!!!) on Sunday, so we're going through the process again. She could conceivably buy a very, very nice car again, but she decided to earmark that money for actual investment, so she's being extremely frugal. LOL Still paying cash.

    Once you save up that money, it's so much harder to spend it than when you're shopping with borrowed money. But the point remains: Car payments = poverty.
     
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  14. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    That is excellent! Marry that girl posthaste!
     
  15. RugbyMuffin

    RugbyMuffin Uh,huhuhuhuhuh

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    Bold statement.
     
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