We just completed our first month using YNAB and it was eye opening. We are using a ton of cash we don’t have and severely over budget on everything. I’m finding it difficult to use this app because there are so many purchases and categories that are not funded. And I am constantly trying to whack a mole and rearrange.
We had almost $2000 in the “forgot to budget” category. For things that we probably shouldn’t do, but find ourselves purchasing anyway on cards because we think it’s “important”. For example, spending $1000 in plane tickets for my entire family of 4 to make it to a family reunion in a different state where I will be seeing someone important to me that usually lives abroad. Spending $500 on two kids birthday parties because June is just that month for us. Sending a dear family member a gift because he announces he is having twins. And other random things like this. I know the reality is we need to say no. No, sorry we cannot make the family reunion. No, sorry kiddos we can’t have a big party with all your friends and order pizza for everyone. Sorry, here is a congratulations card and no gift. But God, it just feels like I can’t say no to these things.
Is it still realistic to be a YNAB user when my entire budget is red or yellow and a complete mess? How do I rearrange my brain so I can start saying no to things? I get extreme fomo, especially when it comes to my kids.
—Edit: Wow I am loving these comments so much! It is reassuring to hear that everyone goes through this initial shock as they are confronted with their spending habits. And yes, I looked it up and I am definitely on the credit card float. I am taking everyone’s advice and creating categories for everything that was in my “forgot to budget for”.
I guess I will take this opportunity to ask some newbie questions.
when overspent on a category, like groceries, and I want to readjust the amount to be more realistic with what I spend in a month, do I readjust the target for that month or leave it as is and go ahead into the next month instead?
how do you handle transfers between accounts? For example, we have an individual checking account and a joint account and we sometimes transfer between the two. But in YNAB I see an inflow and outflow but it’s also asking for a category? Is that right? How do I get it to look like a transfer?
why do I have to keep reauthorizing this one chase and PayPal account? Every week it looks like something happens and it wants me to re login which is a pain. How do I fix this?