Christy & I just watched this webinar live and it was really helpful. Its a great place to start to get to know how the software and zero based budget are combined.
Link to getting started with YNAB recorded webinar
Link to live training classes
PS - They offer a free license to high school and college students. Pretty cool
I've know about YNAB for some time now but never tried it. The lack of fully automated "direct connect" to my credit union was the show stopper for me. A few of my colleagues really are fans and love it. After being right back again to a frustrated place with Quicken I'm diving in with both feet. I've talked in previous posts about how fully automating your budget is unrealistic and that you need to feel your money at an emotional level. What I'm learning is the fully automated "Direct Connect" makes your money less emotional and you don't feel it as much. YNAB gets this and has wrapped good technology around this concept and added a few wrinkles of their own. I'm excited to begin using this personally but also for the families I have the opportunity to coach I think this can be a very tangible execution tool. There is a fair amount of execution risk in Dave Ramsey's budgeting tools. Both personally and as a FPU coordinator the pen and paper is not well received and something from another era. BUT the every dollar having a job on purpose before the month begins is indisputable. I believe this software is the perfect companion to put the knowledge your getting from FPU into action put you on the path to financial freedom. I've participated in the initial webinar at this point and setup my budget and loaded the app on mine and my wife's smart phones. There are some great recorded presentations to give you an overview of how it works. It is a bit different and I found more value thank I expected in participating in the live online webinar. I did the most basic how to use the software Getting Started class thought by Lee Hammel. Here is a LINK to YNAB's live class schedule. Also Click Here for their on demand recorded classes. A couple things to know. There is a 34 day free trial then the cost is $60 per year. I highly recommend having Dropbox installed before you install the software. It uses this to keep your data in the cloud and sync between devices. If you try it and want to buy it here is a referral code that saves you $6.00 and we I receive $6 as well. http://ynab.refr.cc/MXLDK4M
The timing of this is really good as the Troy Fall class just did FPU week 3 Monday on budgeting. This is a great way to start your October budgets. Happy budgeting and I look forward to seeing you Monday for Dumping Debt. Post up your experiences with your budget and trying YNAB in the comments section below this post. thx dave
Dave Ramsey's investing lesson is one of the weeks I get the most questions about. Can you really get 12% should you work with an adviser? How should the adviser be paid? Lots of questions. Here is a resource that I follow. I'm sharing it hear to help you make an informed decision on your investing strategy.
Exerpt below then follow link for more - Bogleheads® investment philosophy
The Bogleheads® follow a small number of simple investment principles that have been shown over time to produce risk-adjusted returns far greater than those achieved by the average investor. Many of these ideas are distilled from Nobel prize-winning financial economics research on topics like Modern Portfolio Theory and the Capital Asset Pricing Model. But they are very easy to understand and to implement, and they work. In fact, the basis of all of these principles is the idea that successful investing is not a complicated process, and can be accomplished by anyone with a small amount of effort.
These ideas come from the investing philosophy of Vanguard-founder Jack Bogle. They have been further distilled and explained in thousands of posts on the Bogleheads forums, starting with original contributors Taylor Larimore and Mel Lindauer. More advanced concepts were first widely introduced to the Bogleheads community by investing author Larry Swedroe, a tradition that has been carried on by Rick Ferri among many others.
This wiki article provides many details about how to apply these principles, given constraints, such as the specific tax-advantaged accounts an investor has available. For a video presentation of Bogleheads principles, refer to Video:Bogleheads® investment philosophy.
A friend showed me the way he and his wife were banking and was very excited about it. I'm just beginning to check it out and have opened an account and am waiting for the initial funding to be posted. It looks very promising. I'm not looking at it to replace my main banking account (that's what they all want right?). Rather as a replacement for SmartyPig. Neither have quicken functionality so that is a push but the web app and online Goals interface seems fresh and Simple uses a different approach than SmartyPig. You might want to Check it Out. The "Safe to Spend" concept is pretty cool to if you were to use it as your main account. Here is a link https://www.simple.com/
In this episode, Andy gives three words that have the potential to change your financial world forever. (And no, he's not selling anything.)
Link to Video here http://yourmove.is/watch/guardrails/5/
I recently came across some great material at Kahn Academy on this topic. We talk a lot in FPU classes about renting vs buying and when is a good time to buy a house. I advise participants be on Baby Step 3b before buying a house. Baby Step 3 is Debt Free with a 3-6 month emergency fund in place. Baby Step 3b adds a 20% down-payment that you use towards a 15 Year fixed rate loan that is no more than 25% of your take home pay. An additional consideration when house planning is to have margin if you have an interruption in employment. Ask questions like: Do both spouses want to / need to work full time to fund this house purchase? Could we make it financially on one income if we chose to or had to? Elizabeth Warren has a good book out on this topic called the Two Income Trap. Renting makes perfect sense depending on your stage of life, roots to the community etc. If you move a lot for work renting is generally the better option. To help unpack this check out the 3 part video series on rent vs buy at Kahn Academy. I've attached the spreadsheet below from lesson 3. Renting vs Buying Lesson link
My friend Greg emailed me a part of this blog post. I found Carey's leanings insightful and compelling. I hope it sparks conversation and action at your house. Here is a link to his de-brief.
My year long spending fast is over.
For the last year, I’ve been on a 12 month personal spending fast. The rules are here if you want to read them, along with two updates I gave along the way (at 3 months and 8 months). (The 8 month update includes the only case where I broke the rules.)
But basically it meant I agreed to purchase no new technology, music, apps, clothing or other discretionary personal items for a year.
I was inspired to begin it by my assistant Sarah, who had spent the previous year on a personal spending fast. You can read about Sarah’s fast here.
My twelve months came to an end on the weekend.
- See more at: http://careynieuwhof.com/2013/03/7-lessons-from-my-year-long-spending-fast/
Based on last nights FPU discussion I decided to put a Credit Freeze on my credit report with the 3 reporting agencies. It was pretty easy and cost me $30 ($10 each) With Equifax & Experian I was able to complete the process online without creating an account. With TransUnion the online process failed, the automated phone process failed, and I had to speak to a representative with a very thick accent that helped me complete the process. So at this point my file is frozen and I must "Thaw" it to allow any inquires, soft or hard. If your not ready to put a freeze on your account you might want to consider the identity theft insurance Dave recommends. He advocates it includes restoration services. Check your homeowners policy to see if this is already included. Below are detailed instructions on how to do so with each of the agencies courtesy of www.clarkhoward.com
We did not talk about this last night but a MUST for all FPU participants is to use the Optoutpressscreen service. I encourage everyone to do this immediately. It blocks credit issuers from doing a soft inquire against your credit file to determine if they want to send you unsolicited offers of credit. Who needs that! Use the link above to sign up today.
EQUIFAX CREDIT FREEZE - [Website]
EXPERIAN CREDIT FREEZE - [Website]
TRANSUNION CREDIT FREEZE - [Website]