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During this video will examine the rule one, Give every dollar a job.
with this rule every dollar as assigned a task
to do.
no dollar can escape your control at this approach your money will do exactly
what you tell it to do
Imagine for a second that your household finances are like a business.
Let's take a grocery store as an example.
The boss decides what jobs need to be done, then hires employees to do those
jobs.
but what if no one did their job?
what if employees came and went as they pleased?
Most likely they wouldn't be in business very long.
A household with a dollars are not given jobs and what is no boss will
eventually go under as well.
So with your household finances you must be the boss.
we want you to set up job descriptions for your money.
In YNAB we call these categories.
You're the boss and your dollars are your employees.
You'll start by setting up job descriptions for your money and deciding
what you need those dollars to do.
Once you've decided on the jobs for your dollars
you set up a budget. Now you'll make spending decisions by checking the
budget
instead of the bank balance.
Let the budget you created guide you decision making process.
Let's jump over to the software and take a look
You have nine hundred dollars available to budget
so now you need to give those dollars a job.
this won't be enough to budget for the whole month
so you'll have to prioritize at times.
you just need to ask yourself
what does this money need to do
before you're paid again?
you don't get paid again for a week so you just need to budget for things that
will happen within the next week.
then the next time you paid you'll budget again asking the same question
right now you need gas and groceries so you budget for immediate needs first.
notice that the amount of money available to budget has gone down
now there's some bills due this week that also need to be paid to a budget
for those
now this is a zero-based budget
every dollar has been given a job
Rule One helps you to prioritize and take care of the important things that need
to be taken care of
just always ask yourself this question every time you get money
what does this money need to do before i am paid again?
as long as you can answer that your money will be doing exactly what you
want and need it to do so start today
just enter the money you have on hand n get every one of those dollars job