Sunday, December 21, 2008

You Need A Budget Software

A lot of people today are worried especially of the recent recession. In this economic hardship times, we really need guidance on how to budget and manage our money properly.

While surfing through the net, I came across You Need A Budget (YNAB) Pro software that is a personal budgeting program. Using the budget software provides a system for planning and executing short term and long term budgeting goals much more effectively. It will help you budget your money wisely in order to save a certain amount of money monthly until you would be able to save a full month worth of your expenses. Your savings could now serve as your buffer.

The YNAB Methodology uses four rules of cash flow management:
1. Stop Living Paycheck to Paycheck - This refers to having to save enough money to live on last month’s salary.

2. Give Every Dollar a Job - You allocate all your funds that you have Available to your spending/saving categories until there are no more available dollars.

3. Prepare for Rain - This YNAB rule will help you allocate funds for emergencies or unexpected repairs. By allocating funds to these types of budget categories, you will avoid panic when these events occur.

4. Roll with the Punches - Using even with the best budget software available in the market, you can sometimes overspend in a Budget Category, YNAB will make small adjustments with that overspending, ensuring that you fix those mistakes before you go on to the next month.