Budget Nerds

#89 - Find the Money First

May 1, 2024

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

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Quick takeaways

Finding the money first aligns with YNAB principles, requiring proactive budget adjustments before spending.

Prioritizing spending based on personal values ensures financial decisions align with goals, promoting intentional money management.

Deep dives

Proactive Budgeting Strategy - Find the Money First

Finding the money first before spending is a proactive approach that aligns with the YNAB principle. It involves making adjustments to your budget before actual spending occurs, ensuring you have money allocated for purchases beforehand. By anticipating overspending and reallocating funds from other categories, you prioritize your financial goals and avoid guilt or regrets after the fact.

Introduction

2min

Discussing the 'Find the Money First' Concept and Evolution of Rule Three

2min

Prioritizing Financial Adjustments

6min

Finding the Money First for Financial Acceleration

16min

Prioritizing Financial Management for Joyful Spending and Saving

2min

Exploring Trade-offs and Decision-Making

3min

Teenage Son Embraces Budgeting App

4min

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.

Share your YNAB wins with Ben and Ernie!

budgetnerds@ynab.com

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