At the beginning of the year when I made this goal I was thinking I was going to have it based on paying off all our debt which means one day I want to live debt free: No mortgage, car loan, student loans, etc. Nothing. That’s my long term goal, something like a five to ten year goal. For this year, I want to stick to something smaller but it’s the most important aspect of that long term goal. That’s creating and sticking to a budget.
The past year and a half, after my wife left her job to take care of our children, we completely revamped our finances. We found a lot of Big Wins in our budget, cut out unnecessary spending on things we didn’t need or use, and got the rest of our finances in order.
In that time the biggest thing we tried to do was create a budget and stick with it. We’ve tried a lot of the available software: MINT, Quicken, YNAB, etc, but we’ve struggled to keep them up to date. I really like YNAB, short for YouNeedABudget.com. I love the idea, software, community, and available training.
That’s why this year my big financial goal is to stick to our YNAB budget. Everyday I want make sure our YNAB budget is updated with all of the day’s expenses. Then we’ll review our process at the end of the month and tie back our YNAB account to our bank accounts. We’ll review our spending, adjust our budget, and repeat the process every month for the rest of the year.
I think keeping an up to date budget will have the biggest impact on our future financial success.
It all starts with small steps completed every day. drip, drip, drip.