Why You Need a Budget (YNAB)

I'll be honest, while I'm a mom first and blogger second, this opportunity is too good to pass up, so I had to post this today.

Another confessional I have is that I have not reconciled my bank accounts since last October because I refused to be bullied into buying the next generation version of Quicken.  Frankly, it is not an upgrade if the prior version WILL NOT FUNCTION.  I paid for it, and I'm OK with not getting support for it, but think about it.  Would you continue business with your phone store if if the sales clerk dropped your phone in the toilet, then suggested an upgrade?  That's what Quicken is doing with their "upgrades".  They can stick their upgrades where the sun don't shine, dang it!

While I disagree with their business practices, they really had me because I've been using Quicken for 10 years.  I refused to give them any more of my money, but I did not find an adequate replacement.  That is, until now.  Allow me to introduce you to my Quicken Replacement, YNAB (You Need A Budget).

I am not getting paid to write this and they are not giving me anything for it.  But, when I did their 7 Day trial in September and we had that power outage, they generously gave me a 30 day extension, just because I asked for another week!  Amazing customer service.

I was already planning on buying the software, because it did everything Quicken did for me faster and easier.  And, you will never be forced to get a stinkin' upgrade if you don't want one.  The interface is fluid and easy to understand.  You can import online transactions and your prior financial files if you want.  They will give you a phone tutorial and a web conference to show you all the neat features.

It is November and I still hadn't purchased it yet.  Why?  Because they generously gave me another extension that would last until Dec 7th.  (They knew I'd be busy with Back to School stuff and traveling and eating for Thanksgiving....)  That's another thing, the free trial is not a limited version of the real thing.  It IS the real thing, in all it's glory.  You will know exactly what you are getting and you get to try it out before you buy it.

As a Cyberdeal, YNAB has offered a 35% discount to current users to share with their friends.  They then extended it to folks like yours truly, who are still using their trial license.  However, the deal expires TODAY, November 30, 2011.  Which is why I put off everything else to post this now!

If you already know that you will not be upgrading Quicken, but you need to find a replacement fast, YNAB is the answer.  Trust me, I've been looking around.  This software gets the full endorsement from The Frugal Writer because it will save you money, is a good one-time investment and will help anyone take charge of their finances.

The software retails for $60.  I was going to take my lumps and pay the full monty because it would pay for itself quickly since I would never need to upgrade.  However, you can get it for $39 (35% off) if you buy it here:  http://ynab.me/cybertuesday

Try it...  If you are not happy, they will give you your money back.  Oh, and tell them The Frugal Writer sent you.  I've already purchased the software, but hey, it never hurts to mention your friends.

UPDATE April 30, 2013:  YNAB no longer offers a refund.  This is because they now give you a 34 day trial and once you activate the software, there is no way to ensure that it is uninstalled or unused after purchase.  Still, 34 days with the full size version of the software is more than enough time to decide if you like YNAB.  Also, this blog post was written before the release of YNAB 4, which is a great improvement to already good software, so it is still worth the investment.  Also, there is no limit on how many computers or devices you can install the software on, so everyone in your house can access the budget on their own machine. 

Starting an Allowance

I always envisioned starting an allowance for my little guy when he turned eight.  This was not a magic number, but I figured he’d be reading, doing math and prepared to handle an allowance.  When he entered First Grade, he would ask for a dollar here and a dollar there for the latest thing at the School Store that his other buddies were buying.  It became clear that an allowance would enable him to have “purchasing power” without him henpecking me for days on end.  I decided to accelerate my allowance plan two years early.

I started with a low dollar amount, $2 every week, and explained to him that just like his father; he would get paid on Friday, after school.  He loved the idea and the best thing is that he never badgers me for money anymore.  The monetary amount is small enough that he really has to save in order to buy a big ticket item.

Establishing an allowance has really allowed my son to have choices, learn about budgeting and experiment with money in a safe environment.  For more tips on starting an allowance for money savvy kids, check out my article in my Mothering Matters column on Patch.

Fashionably Frugal - An Introduction

Six years ago, my work friends thought I was insane when I told them I took out forty dollars every week. I took the train to work in Virginia and that weekly allowance was earmarked for train fare and lunch money. While I did get out for an occasional lunch out, most of my savings resulted from packing lunches and saving a little bit each week to purchase the monthly commuter passes I needed. (It didn’t hurt that I received a Metro credit as a work benefit).

I was always of the frugal persuasion. I remember saving for my first Walkman in high school. That big, clunky, gold (yes, it was gold colored, yikes) cassette player set me back fifty bucks. But I dutifully paid the store each week until I could take my baby home.
Being frugal was never glamorous. But I did what my mom always taught me: Always save a little bit and don’t spend more than you have. Wiser financial advice could not have been spoken. I’ve been ridiculed for being miserly and have pinched pennies to stay home with my children. Now, the world could not have prepared enough for the financial devastation experienced by our housing and banking industry.

Lots of folks are feeling the pinch and I’ve gone from cheap to chic. In order to save money, my husband agreed to one packed lunch a week and a reduction in his weekly allowance in order to get more satellite TV channels. Now, instead of getting surprised looks at the mall when I pull out lunch for the kids, others are wishing they did the same thing. Hubby now regularly checks out craigslist and brags about the reduced priced sales he gets at Macys. One friend actually spoke about getting rid of her cleaning lady and doing her lawn herself in order to save money. (I’ve always been my own cleaning lady! Thankfully, hubby does the lawn!) I have no shame in admitting that quite a few of my kids’ clothes have come from consignment shops and clothing giveaways held at neighborhood churches. My daughter has inherited her brothers clothing, as long as it involves solid colors and no construction tools or trucks.

This recession has been an equalizer of sorts. People are no longer afraid to admit they are having a tough time making ends meet. I have trimmed expenses and led a threadbare existence as a normal way of life. Now, I can be fashionable with my commonsense ways of spending (or not spending) money. Living within your means is going to become a matter of necessity since it will be harder to qualify for credit. With that, I leave you with 4 fashionably frugal tips:

1. Set up a weekly allowance for yourself and stick to it. If it’s good enough for the kids, it’s good enough for you.
2. If you must buy something, buy used: eBay, Amazon, craigslist. Never, ever pay retail!
3. Freecycle.org is a great way to inherit treasure for free!
4. Cook once, eat twice! Leftovers or lunches, this saves time and money.

Frugally Yours,
Maribel

This post was originally published as the Frugal Families blog on Chesapeake Family in September 2010.