I don’t normally post or share things online but my YNAB success story is one that I want to wax lyrical about because frankly YNAB deserves it.
I’ll start by explaining what my life was like pre-YNAB. I’m based in the UK and our economy has been swamped with cheap credit for the last decade. The same made racking up credit card debt too easy. I have had peaks and troughs with credit card debt over the last ten years; I always seemed to carry a balance (I’d come to accept debt as being ‘normal’). On many occasions, I would pay a credit card off completely, and swear to never open another one – but I always did, there always seemed to be something new on the market that I wanted to buy or an emergency. In addition, I had no savings (never had).
Over the last 5 years I’ve been blessed with earning a good income but this failed to solve my credit card debt cycle (AKA revolving door syndrome). On payday, I would see the money credit my checking account, and think, “I’ve got so much money to spend”; I’d go out and buy pretty much anything I wanted. Problem was, I didn’t have a budget. Invariably, I would get to the end of the month, find that I had overspent, and then I needed a credit card to help me out.
So what’s my life like now? It’s good, I have savings, I don’t have debt, I have peace of mind and I simply love budgeting.
One of the most useful tips I picked up about YNAB was via a YNAB online training session, the Trainer mentioned that we should save, create a buffer AND pay down debt SIMULTANEOUSLY. This was a revelation to me, e.g. when previously trying to pay down debt, I would do so, but then an emergency would crop up and I’d be straight back to using my credit card. However, the Trainer’s advice was spot on – I progressed to do all three at once. When I finally paid off my credit card debt, I had savings in my account that ensured freedom from returning to my credit card.
I started YNAB with £3k credit card debt, no savings and no buffer. Now, I have paid off my debt, I have £000’s in the bank which ensures that I don’t need to rely on my credit card and I have my buffer.
The YNAB software is excellently designed, I love all the reports that YNAB produces – when I view the graph showing my spending, it has helped me to analyze my spending and to stop wasting money on useless things. My net worth continues to grow every month and I’m very proud of it.
I’d like to thank Jesse, the YNAB Trainers and to each of you on the forums who have been there for me when I have had questions.
To anyone who’s new to YNAB, I can assure you that financial peace of mind is ‘just a budget away!’