Late last year, the YNAB method changed. Instead of four rules, we now have just one, Give Every Dollar A Job. And we now have five questions to support that rule.
I blogged about this in December after the announcement came out. When I first heard about this shift, I was thrilled. And now, four months later, I’m still excited by it. And one of the things I love is the creation of the five questions.
When you have money in Ready to Assign, these five questions can help you figure out how to assign it. They are not in any particular order, though the Reality question is likely the right one to ask yourself first.
- What does this money need to do before I’m paid again? (The Reality question)
- What larger or less frequent spending do I need to prepare for? (The Stability question)
- What can I set aside for next month’s spending? (The Resilience question)
- What goals, large or small, do I want to prioritize? (The Creation question)
- What changes do I need to make, if any? (The Flexibility question)
The five questions pack a big punch. They can help you pay your bills, cover your non-monthly expenses, save for future spending goals, get a month ahead, and roll with the punches.
If you give every dollar a job (making sure that you Ready to Assign is zero at the end of each YNAB session) and let these five questions guide you on assigning those dollars, you’ll allow YNAB to change your financial life like it changed mine. You’ll watch your bank accounts swell and, I hope, you’ll see your spending become aligned with your values and priorities.
You can learn more about the YNAB Method and the five questions on the YNAB website. And if you’d like a deep dive on the evolution of the method, check out this YNAB blog post.
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