The YNAB Podcast

Let's Cut Spending!

Apr 8, 2024

06:19

Snipd AI

Exploring the impact of 'cutting spending' on financial habits, the importance of aligning spending with personal values, and shifting mindset towards intentional spending for peace and contentment.

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Quick takeaways

Cutting spending often leads to deferred spending on other items, not real savings.

Using guilt constructively can guide spending adjustments based on personal values and priorities.

Deep dives

Reframing Spending as Deferment, not Cutting

The podcast challenges the notion of cutting spending, arguing that it merely defers spending rather than eliminating it. The speaker emphasizes that the money saved from 'cutting spending' often ends up being spent later on other items. By reframing this approach as 'spending corrections' instead of cuts, individuals can align their spending with their values, ensuring that every purchase reflects their priorities. This shift from cutting to correcting spending habits promotes intentional and purposeful spending.

Rethinking the Concept of Cutting Spending for Better Financial Habits

2min

Embracing Intentional Spending and Value Alignment

4min

Let's cut spending! And then... what exactly? The all too common advice that you need to "cut spending" implies that your level of consumption is simply too high. That may or may not be the case, but in Jesse's experience and the thousands upon thousands of people YNAB has helped to regain control over their money, "spending less" is rarely the problem. Most people don't have a spending too much problem, they have a spending on the wrong things problem. For that reason, you'll never hear Jesse give advice to just "cut spending."

Got a question for Jesse? Send him an email:

askjesse@ynab.com

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