Before I started budgeting, I recall the all-too-familiar, queasy notion that something was amiss with my finances—that bills would be paid late, and that there would be no more eating out that month. And, as I slurped down creamy chicken Ramen noodles, I’d wonder, “Where did all of my money go?”
It’s a question that leads many a YNABer to our virtual doorstep and, unlike with the lost sock phenomenon, there’s an answer to be found (if you dare). But a far more valuable piece of data lies in the future … forget about where you’ve spent dollars in the past. Instead, if you really want to get control of your cash, your best bet is to focus on your desires.
Go-Go Budget Goals!
When you know what you want, you take action to make it happen. It’s that simple. If you don’t want to miss an early flight, you set an alarm and get to bed early. If you want mashed potatoes at Thanksgiving, you make sure to get the serving bowl before your cousins get hold of it. And, if you want to have enough money to live a life that you enjoy, you budget.
… and you make your budget irresistible by setting goals.
Goals are a lot more fun than they might sound. See, when you have money, you will inevitably spend it. But, when you have money and goals, you’re incentivized to set aside some of that cash to make your goals a reality.
And goals don’t have to be boring. Sure, you might want to be debt-free. You might want to break the paycheck-to-paycheck cycle. You might want to repair a cracked foundation in your home. But, you can also aspire to go on a trip to Spain, enroll in yoga teacher training, buy a jaw-droppingly gorgeous chandelier, or buy a vintage saxophone.
Your goals can be anything you like! The key is to make them, and to make them specific (because saving for a trip to Spain with your sister in August 2019 is far more motivating than vaguely saving for a vacation that maybe you’ll take if work ever lets up).
How to Set a Goal in YNAB
To set a goal in YNAB, create a budget category where you’ll save up. Click on the category name and, in the inspector (the right-hand pane), click “Create a goal.”
Next, choose a type of goal:
- Target Category Balance (e.g., save $4,200 for a saxophone)
- Target Category Balance by Date (e.g., save $600 by October for car insurance)
- Monthly Funding Goal (e.g., save $300 per month to buy your next car in cash)
Depending on the type of goal that you choose, you’ll be asked to enter the amount you need to save, the date and/or a monthly funding goal. Follow the prompts, and click “OK.”
Now, the “Available” column in your budget shows an orange progress indicator:
When you click on the category, you can also see the progress that you’ve made in the inspector. Once you’ve fully funded your goal, the category turns green, and it’s time to celebrate.
So, What Do You Really Want?
What inspires you? Practical goals go a long way—life gets uncomfortable without food, shelter and electricity, and becoming debt-free is fantastically freeing. But, don’t be afraid to think bigger. Dream a little, and use your desires to motivate you.
Sure, you’ll still encounter the urge to splurge, but when your budget is the key to unlocking your biggest life goals, it’s so much easier to stay on track!
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