YNAB for the New Year

One reoccurring problem I have with budgeting is mentally spending allocated money more than once. Since this is physically impossible, my debt-reduction plan is not very realistic. For example, when I first began trying to pay off my debt in June 2007, I estimated that I would be debt-free in December 2008. While I have made great progress--reducing debt by $7500, my estimates were way off! I need a system that keeps me accountable. My budgeting tools in the past were pencil and paper first, then last April I found an Excel worksheet from Mr. Debtbeater based on bi-monthly pay. I was diligent about planning my budget, but not so diligent about entering actual expenditures. I tried jars and envelopes, but was still able to avoid the consequences of overspending. In September, I looked at spreadsheets to track expenses, but my brain was so stressed with school and then moving that I couldn't get started with anything new.

I first saw YNAB online awhile ago and was intrigued by it, so I decided to give the Excel version a try. YNAB stands for You Need a Budget, and is based on 4 Rules of Cash Flow that merge nicely with Dave Ramsey's Baby Steps and the envelope system. What I like about it is that if I overspend in one category, I have to figure out a way to "fix it" either this month or the next. I can spend less in that category next month, or move money from another category. My budget will be a better reflection of my actual spending.

I'm sure I will make mistakes and miscalculations, but with the YNAB software, at least I'll be aware of them and be more likely to correct my errors. I am excited to try January's numbers.

Does anyone else use YNAB?