The YNAB Podcast

What If Being Good At Money Is Just Skill Acquisition?

Nov 25, 2024

Discover the idea that being good with money isn't an innate talent but a skill that can be learned through practice. The discussion emphasizes mastering financial management by building sustainable habits and learning from mistakes. Fun insights about the 2025 YNAB FanFest tour offer a glimpse into exciting community events and keynotes. The focus is on embracing the journey of financial skill acquisition, where every correct decision counts towards a brighter financial future.

06:46

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Quick takeaways

Building personal finance skills is a journey enhanced by community connections, as illustrated by events like YNAB FanFest.

Embracing the concept of error correction fosters growth in budgeting, highlighting that mistakes are essential for mastering personal finance.

Deep dives

The Importance of Connection and Learning in Personal Finance

Building personal finance skills requires not just individual effort but also community connection. Engaging with others who share similar goals can enhance the learning experience, as demonstrated by events such as YNAB FanFest, where participants can gather for talks and discussions. This sense of community helps individuals stay motivated and reinforces the notion that personal finance is a journey that benefits from shared experiences. Attending these gatherings provides attendees with valuable insights and encourages them to think more purposefully about their relationship with money alongside fellow enthusiasts.

Exciting Announcement for 2025 YNAB FanFest Tour

2min

Embracing the Journey of Financial Skill Acquisition

6min

It's common parlance to say someone is "good with money," but it's often said in a way that suggests some people are innately gifted with money management skills. Jesse punches back at this supposition. He argues that becoming good with money is a skill, and skills are acquired through habit -- stringing together a lot of days with good money decisions until the good decisions become second nature.

You don't have to be perfect either! Jesse cites his favorite definition of intelligence, which is error correction, i.e. someone who makes an error, realizes the error, and then fixes it, demonstrates intelligence. It turns out, error correction is built into YNAB's four habits: rolling with the punches is the process of reacting to new circumstances by reallocating money as needed. Then, in the future you can plan for those new circumstances by embracing them as part of your true expenses (habit #2).

Next time you catch yourself thinking "I'm not good with money," focus on making one good decision, then another the next day, then correcting your errors... until it becomes another skill you have acquired!

Get your tickets to YNAB Fan Fest 2025! Coming to San Diego, Minneapolis, and NYC. Tickets are ON SALE NOW:

YNAB.com/events

Got a question for Jesse? Send him an email:

askjesse@ynab.com

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