Ben and Ernie tackle the age-old question: can I afford it? Many people who are stressed about money face this question regularly, and without a solid plan for their money, there's not a good answer to the question. The answer usually comes down to this: how much money is in my bank account right now, how much do I owe right now (do some mental math), and is the remainder enough to buy this thing?
As we all know, the bank balance and mental math approach to this question is a slippery slope, and prone to a lot of errors. But with a solid plan, following YNAB's Four Rules, you don't have to worry anymore! There's either money in the category for the thing you want to buy, because you assigned dollars to it already, or there's not. If there's not enough money in the category, then you can move money from other categories to see if there's enough to cover the cost -- and if you are OK with the tradeoff. Maybe you're OK with zeroing out your coffee budget for a month to buy this thing, whereas taking money from the rent category would obviously be a non-starter!
Ben and Ernie go beyond the dollars and cents, however, and discuss the hidden costs of things. There are things with ongoing maintenance costs -- like Ernie and his lawn equipment -- then are things which have a potential non-monetary cost, like Ben's new One Wheel. When you ask the question "can I afford it," especially for big ticket items, it's important to consider all the angles!
Ben and Ernie want to hear about your YNAB wins! Send them an email:
budgetnerds@youneedabudget.com
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