Jesse shares a trick for improving your Rule Two planning (Embrace Your True Expenses), and better prepare for the next unexpected expense.
Jesse suggests pulling your last six months of bank statements, and quickly scanning them for large expenditures. Look at the number of digits, and flag the transactions that have a large number of digits (to you). This should only take a few minutes. Note the payee. This exercise is the first place to look when planning for future unexpected expenses. Did you get in a fender bender and end up with a $1,000 bill from the body shop? Did you hire a plumber to fix some leaking pipes in your basement? These are possible future expenses you can use Rule Two to plan for.
Now, hopefully you won't be getting into fender benders on a regular basis! But that auto shop expense might trigger you to think about upcoming regular car maintenance that you haven't yet budgeted for. Likewise, owning a house means regular maintenance, so at some point you're probably going to call a plumber out again. Time to assign money in your budget and plan for that!
This is a good, easy strategy for improving your Rule Two thinking, and put future you in a better financial position.
Got a question for Jesse? Send him an email:
askjesse@ynab.com
Sign up for a free 34-day trial of YNAB at www.youneedabudget.com
Own the Muddy Parts of Your Story with Mary Marantz
Student Loans Are Frozen, But You Are Not
How Does She Do It? Managing Time in a Busy Life | Laura Vanderkam & Sarah Hart-Unger
How to Go From Two Incomes to One
What Does College Really Cost? Ron Lieber Explains
How to Time a Home Purchase
Budgeting and... Nutrition? How The Four Rules Can Improve Your Eating Habits with Kali Langevin
EP05 Money Stories: From $30k Debt to "CoastFI" with Diania Merriam
The ONE Thing Keeping You from Reaching Your Goals with Geoff Woods
Optimizing Your Car Budget... Not Really
Know Your Enneagram, Know Yourself with Ian Morgan Cron
Here's the Ideal Budget
House Hacking, Individual Stock Picking, & More with Investor Robert Leonard
EP04 Money Stories: How YNAB Brought Sita Peace of Mind... and Peace in Life
How to Find Passion in Your Work with Kelsey Murphy
Jesse Answers Your Questions: Small Business Q&A #1
How to Have the Most Productive Year Ever with Amir Salihefendic (Doist)
How to Get a Job at YNAB with Emma Rolls
Four Common Traits of People Who Aren't Stressed About Money
Budgeting Your Technology with Corbett Barr
Create your
podcast in
minutes
It is Free
We Study Billionaires - The Investor’s Podcast Network
Money Girl
So Money with Farnoosh Torabi
Money Tree Investing
The Disciplined Investor