The past few months I’ve split my review of the past month’s budget (ex. March 2015) and the preview of the next month’s budget (ex. April 2015) in separate posts, but this month I thought I’d try something a little different… I’m going to put both the review of April and the preview of May in the same post. We’ll see if I like it… Let me know what you think too.
April marked the first month that we started using the YNAB software to make our budget and track our spending. And I’ve loved it! My trial period is almost up, so I’ll be splurging and spending the $60 USD to purchase a license.
If you aren’t familiar with YNAB, the software is pretty simple to use and helps to get you to use the YNAB methodology, which consists of four rules:
1. Give Every Dollar a Job.
2. Save for a Rainy Day.
3. Roll With the Punches.
4. Live on Last Month’s Income.
Because every dollar needs a job, and April we put in the existing balances from all our accounts, the April income is totally weird and inflated. However, in the future we shouldn’t have that issue. The saving for a rainy day is the basic idea of “funds” for larger expenses that only come around every once in a while… This is great because I used to just have this sort of “slush fund” that things like that would come from, but now I can see where all that money is sitting and why it is waiting there, rather than thinking I can just go spend it… As you’ll see when we go over the numbers, the whole rolling with the punches thing is really important and we used that a lot. Basically, if something comes up and you have to spend money on something unexpected, just rearrange the money you’ve budgeted for other things to account for that. Once you’ve got your rainy day funds in place, this will happen less and less, but until then, rearranging is how we kept things going. The last rule we haven’t really got under control yet, but we are pretty close. I get paid every other Friday and since May 1st was a payday Friday, that pay is going to be used for the month of May instead of saving it for June… but there will be two more pay days in May that I will put towards June’s budget…
And now on to the numbers…