On my scheduled Sunday weekly reviews, I budget out the money I plan myself to spend next week into a
Week space in N26. The remaining money goes into
Save space or any of my planned big purchases spaces. Here is how it looks in N26:
Macbook here is the planned purchase with goal of 2500 €
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.
Each transaction made with N26 is automatically sorted into a category by the app. If that category is wrong, I correct it in N26 app. On Sundays of each week, I review all the purchases made, the money I have and my goals and based on that, set out the budget for next week. In my case that means moving the money I plan to spend next week into
Week space with remaining money going into
Save or some big purchase goal I have (with it being its own space).
I try to be very strict with my budgeting and make sure that when there is no money left for
eating out, I don't eat out. This approach to finance also makes me stop and review any non food related purchase I make in life and judge it accordingly before going through with it.
I use Bobby iOS app to track my ongoing subscriptions. I review it monthly on my scheduled monthly reviews (on last Sunday of every month) and make sure I don't subscribe to any subscription that I find brings no value to my life or subscriptions that my budget doesn't allow to continue.
I use 2Do to track what things I want to buy next. These are just tasks with
buy tag in 2Do sorted by priority. Here is how it looks:
FI is possible everywhere. The idea stays the same, save more than you spend, try generate passive income through stocks, dividends and property.
I think most people are going to mention credit cards in some way, but for me, it was how my actual bank accounts don't matter. It doesn't matter if I have $X in my savings and $Y in my checking account. I have $(X+Y) to budget and I need to budget $X for an emergency fund.
Also, having $Z left over after budgeting doesn't mean I have $Z to blow. I have $Z to budget for next month since I already budgeted for my frivolous spending. That doesn't mean I don't just move $Z to something frivolous anyways.
It's a different way of thinking about budgeting. It's an envelope system. You have a pile of dollars (real dollars - these are all the dollars you own, right now, in your accounts), and a pile of envelopes. You begin stuffing dollar bills into envelopes - some into the bills coming due before you get paid again, some for groceries until you get paid again, some for gas until you get paid again, and with the smaller pile of dollars after those needs are taken care of, you begin to stuff dollars into your True Expenses - things like Car Maintenance, Insurance Payment, etc. When you run out of dollars, you STOP.
You stop, because you can't put imaginary dollars into envelopes.
YNAB is all about the now - about giving jobs to the money you have. Not to the money you might have later on. It is a different way of thinking, but once you make that mental shift, it comes clear and works beautifully.