Shock Absorbers

As the saying goes, "stuff" happens. Life throws curveballs, sometimes several in a row, and YNAB'ers prepare for this financially by following the Four Rules:

1. Give every dollar a job
2. Embrace your true expenses
3. Roll with the punches
4. Age your money

Today's episode is mostly about rule #3. When you roll with the punches, you reassign money you have saved up for other expenses in the future to cover the unexpected expense you are facing right now. After working the method for a while, you'll build up more and more money in your categories, and therefore have more money available to cover unexpeceted expenses when life decides to throw you a curveball. Think of your money like shock absorbers -- it doesn't take away all the pain or stress of unforeseen circumstances, but it does take away the money stress, which can be a blessing!

 

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