That said, the software as a service model allows YNAB to continue innovating to make the product better. If you don’t renew each year, you’ll lose access to YNAB and the data you’ve built up in the software. As someone working toward financial independence, subscription models probably aren’t your favorite types of products to purchase. This means you’ll have to pay the $98.99 fee each year you want to continue using the software. Unfortunately, YNAB is only offered using the “software as a service” model. This does come with a no questions asked money-back guarantee. YNAB currently costs just $14.99 per month (February 2022) or $98.99 if you choose to pay for the entire year upfront. If you sign up for a free trial through the phone app with iOS or Android, you do have to cancel or your card will be charged due to the way the app stores work. However, that is only true for the desktop version of the software. You don’t have to submit payment information and remember to cancel before the free trial expires if you decide against continuing to use the software. Thankfully, YNAB’s free trial is actually 100% free.
You can try out YNAB for free for the first 34 days. However, if you don’t like how they believe budgeting should work, you might be better off using other options. If you like their budgeting philosophy, you may be a good fit to use their software.
You won’t have to worry about how to stretch money until your next paycheck or how to pay for expenses that are distributed unevenly throughout a month. Instead, you can live on last month’s income. This way, you’re never waiting for the next paycheck to pay a bill. Rule #4: You should only be spending money you earned at least a month ago. You can take money away from one category that still has money in it and allocate it to the overspent expense. If something pops up, you can adjust your budget in real-time. YNAB doesn’t think your budget should be unchangeable. Rule #3: You have to roll with the punches. YNAB will let you know how much you need to save each month and keep you on track to reach your goal. Set goals for these large expenses and associate a time when the goal needs to be met. Instead, there are some large expenses that happen throughout the year. YNAB realizes that not all expenses occur every month. Rule #2: You have to embrace your true expenses. At the end of the exercise, you should have no money left over that needs to be budgeted. Essentially, YNAB believes that when every dollar is intentionally allocated to an expense or a goal, you make your financial life easier to manage.
Rule #1: You have to give every dollar a job. The software revolves around four main budgeting rules.