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Make sure you turn up the speakers on your computerare turned up so you can hear my voice

You need to be able to hear me as well as seethe presentation for this to be useful for you.

There is no phone number to call, you will just listen through your computer.

Important Info

www.youneedabudget.com

Group CoachingIntro to YNAB

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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 email link

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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.

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Class Materials

Following tonight's class you will receive a follow-up email from gotowebinar. It will

include this link to class materials:

ynab.com/support/ynab-coaching/class-workbook-download

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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:

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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

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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 seethe 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:

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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

Available to Budget $3,000 Savings -$250

Available Remaining $2,750Save for Buffer -$100

Available Remaining $2,650Mortgage -$1,200

Available Remaining $1,450Car Payment -$250

Available Remaining $1,200Groceries -$300

Available Remaining $900Internet -$50

Available Remaining $850Cable TV -$75

Available Remaining $775

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Welcome to the world ofZERO BASED BUDGETING!

Available Remaining $775Heating Bill -$300

Available Remaining $475Phone Bill -$100

Available Remaining $375Car Insurance -$100

Available Remaining $275Light Bill -$75

Available Remaining $200Entertainment -$200

Available Remaining $0

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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!EntertainmentGasGroceries

Those are the “Big 3” you need to keep track of.Many expenses are one time expenses, but thesethree 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

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

Myth 3Myth 3

Solution...

Prepare for Rain

Rule 3

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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!

Month Budgeted Spent BalanceJanuary $50 $0 $50February

$50 $0 $100March $50 $0 $150April $50 $0 $200May $50 $0 $250June $50 $0 $300

It’s June, get out your

checkbook

No worries, the money is right there

June $50 $300 $0Month Budgeted Spent Balance

“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 monthYou 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

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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.

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Prepare for Rain

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

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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?

How do you feel now?

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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!

Available Income

Name of Account / Source of Money

Current Balance or Amount on Hand

Grand total of all accounts:

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

Bill Payment Schedule

Name of regular recurring payment or bill

Due date Amount

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.

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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:

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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: www.youneedabudget.com

ForumsWiki

FAQsBlog - Articles

Online Video Tutorials

Want more info?

Group Coaching Survey

We'd appreciate some feedback onthese webinars so we can improvethem in the future.

http://www.youneedabudget.com/support/ynab-coaching/

One on One Coaching

Individualized AttentionSolutions focused toward your situationSessions scheduled at your convenience

http://www.youneedabudget.com/support/ynab-coaching/

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!

http://www.youneedabudget.com/support/ynab-coaching/

One on One Coaching

Basic Coaching

Startup Consultation

1 hour webinar

$69.95(you'll be able to talk to me on the phone)

http://www.youneedabudget.com/support/ynab-coaching/

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?

Email me at:erin@youneedabudget.com