The Jesse Mecham Show

Stop Budgeting Dollars You Don't Have

Apr 3, 2025

Learn how to budget effectively by focusing only on the money you currently have. The principle of 'giving every dollar a job' simplifies your financial decisions and helps avoid the pitfalls of planning for money that isn't in your pocket yet. Discover the power of 'spendfulness' and how it fosters clearer spending habits. This approach not only enhances decision-making skills but also builds financial confidence, leading to a more secure bank account. Simplicity is key to achieving financial clarity!

05:44

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Quick takeaways

Focusing solely on money currently available fosters clarity in financial obligations and promotes responsible spending habits.

Emphasizing simplicity in financial planning mirrors effective workout strategies, leading to improved decision-making and empowerment in finances.

Deep dives

The Importance of Spending With Available Funds

Planning finances should be done strictly with money that is currently in your possession, rather than relying on anticipated future earnings. This approach prevents self-sabotage that can stem from budgeting based on income that has not yet materialized, thereby introducing uncertainty into financial decision-making. By focusing solely on money at hand, individuals can develop clarity about their immediate financial obligations and priorities. This discipline promotes responsible spending and helps build a solid financial foundation, irrespective of one's income level.

The Importance of Budgeting with Current Funds

2min

Achieving Financial Clarity Through Simplicity

3min

YNAB only asks that you follow one rule with your money, the golden rule of money, if you will -- give every dollar a job. And within that statement is implied that you must give every dollar you have a job. Many people get in trouble when they start planning for money they expect to come but don't have yet. There be dragons!

Looking at the money you have right now, and asking yourself "what does this money need to do between now and when I get paid again?" focused you on reality, and avoids asking too many what-if questions about the future and various contingencies. And it's simple. No forecasting, no elaborate scenarios. Just concrete dollars in your wallet (or bank account) right now and present needs and wants.

Simplicity is underrated. Following this simple rule over and over, multiple times a month, maybe multiple times a week, will grow your financial confidence, your decision making skills, and your bank account!

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