Can I Afford This? | YNAB Budgeting Trick

How often do we take on a new expense, only to realize months in that we actually can't afford it the way we thought we could? Today, Hannah shares an experiment you can run on your own budget to determine beforehand if you can comfortably commit to a new monthly expense, whether it be a car or a Netflix subscription.

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[stouttravis]

It wasn't a monthly purchase, but I once saved for a ring for my girlfriend, allocating a good chunk of my money every month. Once I had a full amount saved, I realized marrying her would be terrible choice. Instead of buying her a ring, I bought a house using the ring savings as the down payment, and knew I could fit the mortgage payment into my budget in place of the rings savings.


I still have that house and eventually upgraded the girlfriend, too. Thanks YNAB!

[sherrylynnbishop]

This idea of "test driving" a monthly payment you are considering before actually obligating yourself to it, IS PURE GENIUS!

[MonuMedia]

I swear I could watch Hannah every day for hours! I just love the way you present Hannah!

[whitemageFFXI]

No lie, I added emojis to all my categories after watching one of your videos. I'm an adult, I swear.

[fsmoura]

In the end, I don't even need to buy the car—it turns out, I just like budgeting and funding categories. 😎

[DuzMachines]

I watch all the Hanna videos twice, because she is so entertaining. I laugh it up the first and pay attention the second :D thanks YNAB!

[CassidyParkerKnight]

I used this advice to put away extra money to save for a move and simultaneously see if I could afford to upgrade my place and pay a little more rent. Super super helpful!

[michellecain]

MORE, More, more videos from Hannah! Love her! She’s made me laugh more than I have in months. Oh yeah, and convinced me to use YNAB! Thanks, Hannah!

[itsGabrielaCristina]

I am currently doing this for my downpayment and closing costs. I am saving money every month that’s a bit above what the mortgage payment would be. I’m building up the savings while practicing living without that amount readily available. So far, so good! It’s looking good for a 2022 house purchase

[merindab]

I'm almost through a divorce and I'm staying with a friend right now, but my plan is to move out on my own next year. Right now I'm focused on paying off debt, but once that's done I can def use this trick to figure out how much rent I can afford. Plus that money will be sitting there for a security deposit! Thank you.

[robridlehoover]

That is genius. And Hannah is awesome. I’d watch her describe paint drying she is so entertaining 👏

[terpinator]

Wow...I have never done this...my brain just exploded with the possibilities of what this could do to help me figure out what I actually can afford!...I am on it!

[brfulcher]

I actually started with YNAB so we could try out our semi-retirement budget before we committed. It worked great. And don't change a thing about the videos, I love them!

[qwk]

Thanks Hannah for another Fantastic video! They have made YNAB so much easier to use. It is so nice to be both entertained and learn something new. You are awesome! I paid off a vehicle and just kept putting that payment amount away for 5 years and was able to pay cash for my nice shinny new truck.There were times I was sure tempted to use the money or get that truck sooner. Glad I stuck with it! Will be using your 3 month technique in the future.

[ArturoParrales]

I would also add car insurance, maintenance, etc which would probably be higher due to the fact that the car is newer with more expensive parts

[Carrie]

This video made me wonder if YNAB has a video about what you need to think about/plan for when you want to buy a house.

[ShreyasS]

No joke, Hannah's videos made me give YNAB another shot. Good marketing! But seriously, great videos! ;)

[mpgzooch]

Dave is the man! I absolutely love taking any courses from him. His voice and accent are fantastic but his demeanor is the key.

[kkmrad]

Thanks for this! I am just starting a full time job and wanted to budget for a car. This gives me a good way to figure out if it is possible or not! (:

[klaranilsson]

I did this to determine wether or not I could afford a bigger apartment. Turned out I could afford saving for the downpayment AND the rent for my then current house. So then when I moved I could also save the sum I would have payed for the rent. Felt real good.