A listener, Tom, writes into the show to express some confusion over what constitutes "savings" in a budget following the YNAB method. During a call with his bank to discuss refinancing, Tom was asked how much savings he had on hand, a question which dumbfounded him. Technically, everything in the budget is savings, he reasoned, since every dollar had been subjected to Rule One, and was sitting in categories to be spent sooner or later. So... is all money just savings in that case?
Jesse offers a saying from one of the YNAB teachers, that all savings is really just... spending! Money exists to be spent -- sometimes now, sometimes tomorrow, and sometimes years in the future. But money that is not spent eventually is useless, so in that sense all "savings" is really just money waiting to be spent.
Got a question for Jesse? Send him an email:
askjesse@ynab.com
Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
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Chasing Value
Write That Gem Down!
Rule Zero Morphs Before Your Very Eyes
You've Never Budgeted At A Time Like This
The Commander's Intent
Don't Be Average... You Can't Be Anyway
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Budgeting for Lady Luck
Opting Out of Credit Cards (A Bit)
Scratching the Gambling... Er, "Investing" Itch
Optionality and Managing Your Fixed (or Growing) Expenses
Optionality & Why You Should Follow Rule Two Instead of Paying Down Debt
Incentives and Your 401(k)
Opting Out of the Credit Card Game
January Burndown 2020
The YNAB Debt Bootcamp
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