Why There Is No Wrong Way to Budget - Jesse Mecham, Founder of You Need A Budget
Mar 1, 2023
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Jesse Mecham, founder of You Need A Budget, shares the four-rule method for budgeting and discusses money in relationships. He emphasizes the importance of teaching kids about personal finance and reassures listeners that even experts are still figuring it out.
Budgeting can improve decision-making, reduce stress, and provide financial independence.
Aging your money allows for better decision-making, reduced emotional stress, and improved conversations about finances.
Establishing a budgeting system that works well for both partners involves recognizing strengths, aligning financial goals, and allowing for individual fund money within the overall budget.
Deep dives
Budgeting with Jesse Meekam and You Need a Budget
Jesse Meekam, founder of the budgeting software You Need a Budget (YNAB), discusses the development of the software and the importance of budgeting. He emphasizes the four rules of budgeting, including giving every dollar a job, embracing true expenses, being flexible, and aging your money. Meekam shares how budgeting can improve decision-making, reduce stress, and provide financial independence. He also highlights the importance of open conversations about money, teaching children about budgeting, and the benefits of financial freedom.
The Benefits of Ageing Your Money
One of the key concepts discussed by Jesse Meekam in the podcast episode is the idea of aging your money. By having a time gap between earning money and spending it, individuals gain more control, flexibility, and options in their financial decision-making. Meekam explains that aging your money allows for better decision-making, reduced emotional stress, and improved conversations about finances. By prioritizing long-term financial goals and establishing a buffer, individuals can experience greater financial security and freedom.
Creating a Budgeting System for Couples
Meekam discusses strategies for couples to establish a budgeting system that works well for both partners. He suggests recognizing and utilizing each partner's strengths and contributions to the financial management process. Meekam encourages open conversations about aspirations and financial goals, allowing partners to align their objectives and make joint decisions about money. Additionally, he emphasizes the importance of individual fund money, which provides financial independence and personal freedom within the framework of the overall budget.
Teaching Kids About Money and Budgeting
Meekam promotes open discussions about money with children and encourages parents to involve kids in the budgeting process. He recommends setting up a separate budget for children and discussing their financial goals. Meekam highlights how teaching children about money at a young age can help them become financially independent and give them a sense of pride in their financial decisions. By instilling these skills early on, children can develop good money habits and be better prepared for adulthood.
Resources and Tools for Budgeting Success
Meekam shares various resources and tools available to support individuals in their budgeting journey. He mentions the You Need a Budget podcast, the Beginning Balance podcast, and his book, also titled You Need a Budget. Meekam also discusses the benefits of using the YNAB software, which offers a free trial and a 34-day money-back guarantee. Additionally, he encourages individuals to explore the YNAB website for further information and to consider participating in live classes offered by YNAB to enhance their budgeting skills and knowledge.
If you've been a long-time listener of the More Money Podcast, then it shouldn't come as a surprise that I think budgeting is an amazing tool when it comes to getting your financial life together. That's why this week I'm so excited to have Jesse Mecham, founder of You Need A Budget, on the show to discuss how he turned his budget spreadsheet into one of the most popular budgeting platforms around. Jesse Mecham is a personal finance expert, business leader, podcast host, author, and founder of You Need A Budget. He's a self-proclaimed “recovering CPA,” passionate about budgeting and his four-rule method for keeping track of spending, saving money, and building wealth. In this episode, Jesse explains what his four-rule method is and why he thinks there is no wrong way to budget. We also discuss how to approach budgeting and money in relationships and the importance of teaching your kids about personal finance from an early age. I hope this episode gives you a boost of motivation and reassurance that everyone is still figuring it out, even the experts!
