Last updated 4 days ago

For my own personal finance, I budget all my money with Actual using YNAB methodology.

YNAB methodology for managing money is extremely effective as it allows me to be be more proactive with budgeting and spending. It lets me know how much money I have and how much money I can spend on any given category. I find this proactive approach in dealing with money very freeing and powerful.

I assign the budgets for the categories at the beginning of each month and am strict with adhering to the budgets. If there is no budget left for eating out, I don't eat out.

I have few Income categories where all the money I 'receive' come from:

All the money in my 'Income' I have to budget. Which I do as follows:

There is a Save category group above and in there, there is Save category itself which basically acts as my savings account.

I then spread the remaining money I have into categories and am taking money from Save as necessary. Save category group can also include new categories for big purchases I want to save up to (i.e. Tesla). I strive to always have at least 600 inside my Save category in case of emergencies.

The Bills category gets updated at the start of every month and it includes my recurring subscription costs. Such as Rent, my phone provider or some software services.

I use Bobby iOS app to track my ongoing subscriptions. I review it at the start of every month and update the Bills category of my budget and reassess the subscription costs I have so I can cut down on unnecessary expenses. Here is how it looks for me:

Actual will also soon let you automate setting of budgets in the future so that some of my categories like Food will have a fixed budget every month.

I also use N26 as my online bank which I love.