5 Budget Categories You Need Right Now


(upbeat music) – Hey I’m Ashley with You Need a Budget, and before I even got started
with my free trial of YNAB, I was obsessed with
creating the perfect budget. I had started and stopped
and failed so many times in the past, but I decided
this is gonna be it, this is the app I stick with and I’m finally gonna get budgeting. And I thought the trick would be to create the exact perfect
categories I needed. So I went to Reddit, YouTube, blogs, anywhere where people were
sharing their budget categories, I wanted to see them, so that I could pick and
choose and create my own ultimate budget. And I probably don’t have to
tell you where this is going, but things came up,
random, bizarre things, those first couple of months using YNAB, that before, would’ve
completely derailed me. The reason I think budgeting
stuck for me this time is that I learned there is no
such thing as a normal month, things always come up, we
can let it get us off track or we can roll with the punches, adjust, learn and move on. And there are a couple
of budgeting categories, five that I’m gonna share today, that I think during those weird months, helped to even things out. Category number one is car repair/replace, and one of the weird things that happened when I first started
budgeting is Jeremy’s car which had been very reliable,
started acting really weird, it is a 2008, I think, so we
took it to the mechanic shop and they kept it forever
and finally they called and he said, could we come by? If a mechanic wants to make a house call, this is probably gonna be really bad. So we came and we talked
to him and he said, he had never seen anything like this and that he was sorry it took
him so long to diagnose it, and to help out, he was gonna
let us buy the parts for cost, and here was all the labor, and it was to me, an
astronomical amount of money, but it was something that had to be done. So we said okay, and I
sat down with my budget, I had to move a lot of money around, but I was amazed, I was
still able to pay that bill, but I could still pay the
mortgage, pay utilities, it didn’t completely ruin everything, and that was incredible, and that was a really early
win for budgeting with YNAB. So after that, definitely
every single month, I make sure to put in money into a car repair/replace category. I’m hoping, knock on wood, that nothing else happens to that car. And what I think would be amazing is when it’s time to
say goodbye to that car and get another one, I’ll
have a good chunk of money that we’ll be able to
put towards the new car. Category number two is other holidays. And I’m guessing a lot of you are already setting aside
money for Christmas or Hanukah, because a lot of budgeting advice says, Christmas is not an emergency, we know when it’s happening
every single year, so be saving for it. What I’ve realized after
a year and a half or so of budgeting is that
there are other holidays that happen throughout the year that I like to spend money on. Maybe you wanna make Easter
baskets for your kids or your family does a huge
Fourth of July barbecue and you need to budget for
fireworks and extra food so it doesn’t eat into your
grocery category that month. I have twin sisters and
on their last birthday, I have a gifts category, so I’d already bought their presents, but one of them mentioned
that the year before, which I’d completely forgotten about, I had bought these cake
balls from a bakery called, Milk Bar in D.C and she loved them and I was hoping I would bring them again. So it was at the end of the month and my grocery category was really low, so instead I pulled out of
my other holiday category, and I was able to go to bakery, get those, and bring them to their birthday. Talking about categories that I recommend without talking
about my favorite category, and that is pets, this is Bo, he’s actually not, hold on, he is not our first cat. For most of our marriage, we
had another cat named Momo, and if you know where the
names Momo and Bo are from, I will be very impressed. But Momo was Bo’s exactly opposite, even full grown, she was only six pounds, she was fluffy, she barely moved, she was really low
maintenance and I’m not sure what made me put an
entire category for pets, because I really didn’t need
it, I barely ever touched it, I think it was back when I
was doing all that research, I just thought that this was
a category that people had, if you had a pet, you had a
pet category, but it built up over the course of at
least six or eight months and it was a pretty good chunk of money. And she had been such a healthy cat. I remember just at a vet,
just a regular checkup, a vet appointment, the vet
referred to her as elderly, I was so taken aback. In my mind I guess I was
just young and naive, I thought she was going to live forever, and she still seemed like a kitten to me, but over the course of one weekend, she went from being
completely fine to not. She was such a good pet and I’m so glad that we were able to give her a good life and I’m so grateful to the budget so that that day I wasn’t having to think, well if I pay for this, I’m not gonna be able to pay this bill, which is one less thing
I had to think about. Category number four is health. I do have insurance
but I like to set aside a little bit of money
from every single paycheck into a health category,
it just makes me feel good to know that it’s there. Last year when I was starting
with YNAB, in October, I flew out to Utah for
their marketing meetup, I was excited, I was so nervous, it’s such a change of
pace from my old job, and I wanted to make a good impression on all my new co-workers. And I think it was the
second day we were there, I walked into the hotel lobby, and I didn’t realize it
had just been mopped, and I wiped out like feet above my head, landed on my side, landed on this wrist, and I wanted to die. I was also carrying a thing
of rice for whatever reason and it was a mess. Ben and Kelly were so
incredibly kind and sweet to me, but it was one of those things where I think if I had been by myself, there might’ve been a tear, so I pulled myself together, but when I got home, I was black and blue, and I felt like things
weren’t feeling right. So I went to the chiropractor, which my insurance does
cover part of the visit, but I think I have to pay $50 per visit. So having that health category right there was perfect for that, and then this year I’ve had
to go to the dermatologist a couple of times. And there is one prescription that my insurance doesn’t cover, so when it came time to pay that, it was really easy to just
pull from the health category. Next up, I have a category for a bill I know I’m gonna forget about, and even though I tried so
hard with that first budget to make it perfect, I definitely forgot about
some scheduled things. So by having a cushion category, or if you wanna call it a things I forgot to budget for category, that is so powerful for
helping to remove the stress from managing your money. Now it’s a great category to have if you do have to roll with the punches because it’s the perfect
place to pull money from. So those are the five categories I think help to even out the weird months, and I was asking around if
anybody on the YNAB team had any categories that
they really lean on, I heard hosting, when
people come and visit you, and suddenly you have so much more food that you need to buy,
that’s a great one to have. Also, random acts of kindness, this is more than charitable
giving or tithing, this is extra money so that if you want to do
something really generous, you have that fund there, and I love that one so much. I was cleaning up old YouTube
playlists the other day, and I came across this one where Jesse was talking about categories, and the entire time,
throughout the whole video, he’s holding this tiny kitten and he never addresses it, he just kind of leans into
the cat part of category, and I thought it was hilarious, and I wanted to recreate it with Bo, but he kinda does things on his own time, if he’s cuddly, he’s cuddly,
if he’s wild, he’s wild. So he seems kind of cuddly right now. I hope this video was helpful and thank you so much for watching and I’ll talk to you again very soon. (upbeat music)

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