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
321 - Let It Go
320 - Where Has Zero Gone?
319 - YNAB / Intuit Acquisition
318 - Ever the Optimizer
317 - The Greatest Showman
316 - "The Mexican Fisherman"
315 - Savings: Undetected.
314 - What do you mean, means?
313 - Non-Negotiables
312 - MASH
311 - All Mixed Up, Don't Know What to Do
310 - Pay Yourself First
309 - You Have a Spending Problem
308 - Taxes Tax Your Take Terribly
307 - "I Want A 100-Foot Boat"
306 - My Favorite Time of Year
305 - Merry Christmas, A Gift You Can Give Me :)
304 - Going Back to Your Roots
BONUS - A Conversation with Celia Benton
BONUS - A Conversation with Mitchel Burton
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