YNAB (You Need A Budget)

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

  1. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    It's really not that hard. As Gaddabout outlined above, you just make car payments to yourself and when the time comes, you don't have to buy a brand new car that loses 20% of its value the minute you drive it off the lot. Buy something a couple years old that somebody else took the depreciation for.

    You can start small if you need to and trade up as you continue to make payments to yourself. Ramsey outlines the process here although I wouldn't trust his maths:

    http://www.youtube.com/watch?v=BKyV8CTHeJ0
     
  2. Gaddabout

    Gaddabout Plucky Comic Relief Contributor

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    You know what, it is bold, but that is how you build wealth. Dave Ramsey calls it "living weird," because people earning $100K are driving in $2,500 vehicles while they get out of debt and build savings.

    You can't build wealth borrowing money for an asset that ultimately has a value of zero. And building wealth isn't about becoming rich so you can blow it like oil barons. It's about security, peace of mind, and knowing you will be able to maintain your current quality of life after you stop earning an income.

    So, yes, it's a bold statement because it means not driving even a nice car for most people. It means not eating out when your friends call. It means not having instant access to every entertainment option or, worse, simply having your local library as your primary source of entertainment.

    These are the sacrifices you make now, while you are still in control of your financial future, so you don't end up at the end with a life full of regrets.

    I haven't used a credit card or borrowed money in seven years. It's been the seven most rewarding years of my life, because I'm a slave to no one, and I can actually look at my short-term and long-term future and see it getting better.
     
    Last edited: Oct 6, 2013
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  3. Kel Varnsen

    Kel Varnsen Moderator Contributor

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    Thought I'd bump this to recommend Personal Capital to track your accounts.

    I created a Mint account years ago and recently started using it again, but, man, it's really bad. It doesn't update correctly, the app shows different accounts than when you use the web, customer service doesn't know what's going on, etc.

    Personal Capital is the same concept, but is very smooth and easy to use.

    I'll note that when you sign up, they automatically set up a call with an advisor (which is how they make their money, I think - the tracking tool is free, though). But right after you set up an account, there is an actual button to cancel the appointment, so don't let that stop you.
     
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  4. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    FWIW i signed up with them a few years ago when Yahoo Finance changed their format and I wanted another way to track my stocks. It has to be 4 years now and PC is still calling me every so often, and emailing me, asking me to sign up with an adviser. i've told them repeatedly I'm not interested and I don't use their app and haven't for a couple of years now.

    I did like the app but at a certain point I felt guilty using it when they kept calling.

    I have heard good things about them but if you don't want to use the adviser part be aware they will probably call you multiple times to try and get you signed up.
     
  5. iLLmatiC

    iLLmatiC Drive-by Poster

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    Did you get rid of the Camaro?
     
  6. iLLmatiC

    iLLmatiC Drive-by Poster

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    Not a huge fan of Dave Ramsey but I can pick things that I like about him and leave the rest. I like that he wants you to build an emergency fund, I dislike that he'd rather you completely pay off your debt before investing. Time in market is crucial, having compound interest work for you and not against you is vital.
     
  7. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

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    But that only works if the interest you’re earning is greater than the interest you’re accruing with debt.
     
  8. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

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    But that only works if the interest you’re earning is greater than the interest you’re accruing with debt.
     
  9. iLLmatiC

    iLLmatiC Drive-by Poster

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    I'm not saying stop paying down your debt, I believe that you should be doing both.
     
  10. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    No, it’s my favorite car ever. I paid cash for it.
     
  11. iLLmatiC

    iLLmatiC Drive-by Poster

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    I realized that after I read the date of the posting, my apologies.
     
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  12. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    I’ve used them off and on the last 5 years just as a secondary place to track my net worth. My first experience with them, I talked to one of their advisors on a Saturday. But I told them I’m a do-it-yourselfer and they didn’t bother me again. I deleted my account at one point because they could never get my work 401k values correct. After my plan changed companies, I signed up again. I got multiple calls but I never answered them. They eventually stopped trying. It’s a pretty good free tool once you get past the phone calls.
     
  13. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    I totally agree. The craziest thing is not taking advantage of free matching employer funds if your 401k plan has them. Ramsey is even against that if I recall correctly while getting out of debt! Back when I was working on getting out of debt, I used to listen to him but I agree that you need to pick and choose what advice of his you use. He’s good for getting out of debt but investing, not so much.

    I also use credit cards but I use them smartly and same as cash while always paying the statement balance fully.
     
  14. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    By the way, I still use YNAB budgeting software but I can’t recommend it as whole-heartedly as before. They’ve gone to a “software as a service” model that’s pretty pricey. Luckily, I was grandfathered in at a lower price point. The software is also not as good as their last desktop version, YNAB 4. Still, their method is great and more flexible than most.
     
  15. Superbone

    Superbone Phoenix native; Lifelong Suns Fan

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    I’ve changed my tune on this since I wrote it back in 2013. I think Dave Ramsey must have brainwashed me back then. I’d rather have the flexibility of a 30 year mortgage and instead of putting extra into the house, invest in the stock market. This keeps your funds liquid and the math says you’ll get a better return than putting it into paying back the smallish mortgage rates of today.
     

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