In this podcast, the hosts discuss the concept of 'Find the Money First' in budgeting, emphasizing the importance of prioritizing financial decisions and avoiding impulse purchases. They explore the benefits of aligning spending with priorities to achieve financial fulfillment and accelerate progress. The episode also features a heartwarming story of a teenage son embracing a budgeting app, highlighting the positive impact of early financial education.
35:56
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
volunteer_activism ADVICE
Find the Money First
Find the money first before spending by checking your budget categories.
This allows for proactive decision-making and prevents guilt or regret.
insights INSIGHT
Intentional Spending
Proactively moving money before spending reinforces priorities.
It creates a sense of control and intentionality with spending.
volunteer_activism ADVICE
The Power of No
Checking your budget before spending allows you to say no.
This prevents overspending and helps align spending with your values.
Get the Snipd Podcast app to discover more snips from this episode
YNAB is well known for the Four Rules, or what many YNAB'ers are now calling the Four Habits, which describe the process of gaining control of your money and learning to spend with joy rather than shame or regret. The Four Rules are:
Give every dollar a job
Embrace your true expenses
Roll with the punches
Age your money
In today's episode, Ben and Ernie discuss a concept that is implicit in the rules, but perhaps should be it's own rule -- find the money first! Findng the money first means that when you want something that is not in your plan, you need to find the money somewhere else in the plan, that is, re-allocate money from one category to cover your new purchase. This action makes it clear that you are making a tradeoff -- in order to get one thing, you must give up another thing. It may seem arbitrary, but it's an important move! All too often, people will buy something they want without finding the money first, which sets of a cycle of anxiety and fear over whether they can afford it, or whether they will be able to pay off the credit card bill when it comes due. At the very least, spending before you find the money distances you from your money and your priorities, because it obscures the tradeoff.
Budget Nerds