What is Personal Budget?
A personal budget is a financial plan that allocates money for different expenses and savings goals. It helps individuals track their income and expenses and make sure they are living within their means. A personal budget allows people to prioritize their spending and saving, and can help them achieve their financial goals, such as saving for a down payment on a house or paying off debt.
Personal Budget process in USA
The process of creating a personal budget in the United States typically involves the following steps:
- Gather all financial information: This includes income from all sources (e.g. salary, investments, rental property), fixed expenses (e.g. rent/mortgage, utilities), variable expenses (e.g. groceries, entertainment), and any outstanding debts.
- Determine your net income: Subtract your total expenses from your total income to determine how much money you have left over each month.
- Prioritize expenses: Decide which expenses are essential (e.g. housing, food) and which ones can be reduced or eliminated (e.g. eating out, subscription services).
- Create a budget: Allocate money for each expense and savings goal, making sure to leave some room for unexpected expenses.
- Track spending: Keep track of your actual spending to see how closely it aligns with your budget. Make adjustments as needed.
- Review and adjust: Review your budget regularly and make adjustments as your income or expenses change.
YNAB software in USA and process
YNAB, which stands for “You Need a Budget,” is a popular budgeting software and app that is used by many individuals and households in the United States. The software uses a method called “zero-based budgeting,” which means that every dollar is assigned a job in the budget.
The process of using YNAB typically involves the following steps:
Connect your bank and credit card accounts to YNAB so that your transactions are automatically imported.
- Assign every dollar a job: Every dollar you bring in should be allocated to a category such as housing, transportation, savings, etc.
- Give every dollar a purpose: Prioritize your expenses and make sure you’re spending money on things that align with your values and goals.
- Age your money: The goal of YNAB is to have at least one month of income saved up in your budget.
- Track your progress: YNAB provides detailed reports and analytics to help you see how you’re spending your money and identify areas where you can improve.
- Review and adjust your budget regularly: As your income or expenses change, you’ll need to adjust your budget accordingly.
YNAB also offers a 34-day free trial, and after that, it’s a paid service, but the company offers a 100-day money-back guarantee.
It’s also worth noting that YNAB has a strong community of users, and offers a variety of resources such as video tutorials, webinars, and forums to help individuals and households get the most out of the software.
YNAB software cost
YNAB (You Need a Budget) is a subscription-based software, and it costs $11.99 per month or $84 per year. The company offers a 34-day free trial, and after that, users can choose to pay monthly or annually. Users can also cancel their subscription at any time.
Additionally, YNAB offers a 100-day money-back guarantee, meaning if you are not satisfied with the software, you can request a refund within 100 days of purchase.
It’s worth noting that YNAB offers a discounted rate for students, military members and educators, if you are eligible for any of the groups, you can contact the company for more information on the discounted pricing.
Also, the company sometimes offers promotion, discounts, or special deals, it’s worth checking their website or social media accounts for any current offers.
An expense tracker is a tool or app that helps individuals or businesses keep track of their spending. There are many different expense tracker apps and software available in the US, some of which are free, while others require a subscription or one-time purchase. Some popular expense tracker apps in the US include:
Mint: A free app that allows users to connect all of their financial accounts, including bank accounts, credit cards, and investments, to track spending and budgeting.
PocketGuard: A free app that helps users track their income and expenses, create a budget, and set financial goals.
Expensify: A subscription-based app that is popular among businesses for expense tracking and reimbursement.
You Need a Budget (YNAB): A budgeting app that uses the principles of “zero-based budgeting” to help users take control of their finances. It costs $11.99 per month or $84 per year.
Wally: A free app that uses a combination of manual input and automatic bank feeds to track expenses, income and saving goals.
Spendee: A free app that helps users track their expenses, set budgets, and monitor their spending habits.
Personal budget in USA
A personal budget in the USA typically includes income, expenses, and savings. Income includes sources such as salary, wages, bonuses, and investments. Expenses include items such as rent or mortgage payments, utilities, transportation, food, and entertainment. Savings can include money set aside for emergency funds, retirement, and other long-term goals. It’s a good practice to create a budget and track expenses to ensure that you are living within your means and saving enough money for the future.
Finance planner in USA
A financial planner is a professional who helps individuals and businesses create and implement financial plans to achieve their financial goals. In the USA, financial planners can be certified or non-certified, and their services can range from investment advice to comprehensive financial planning. Some popular financial planners in the USA include:
- Vanguard: A well-known investment company that offers financial planning services to individuals and businesses.
- Charles Schwab: A full-service brokerage firm that offers financial planning services, investment advice, and retirement planning.
- Fidelity: A financial services company that provides investment advice, retirement planning, and other financial planning services to individuals and businesses.
- Edward Jones: A financial services firm that provides investment advice and financial planning services to individuals and businesses.
- Robert W. Baird & Co.: A financial services firm that offers investment advice, wealth management, and other financial planning services.
- TIAA: A financial services firm that provides financial planning services, investment advice, and retirement planning to individuals and businesses.
- Financial Advisor’s: They offer fee-only, fee-based, or commission-based financial planning services, depending on the advisor. They are regulated by the SEC or state securities regulators.