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The YNAB Podcast

How to Budget When Everything Is Expensive

The YNAB Podcast

YNAB

Consolidation, Total, Budget, Dave, Peace, Money, A, Education, Ynab, Finance, Bankruptcy, Makeover, Fpu, Software, Management, Personal, Need, Ramsey, Financial, University, Debt, Kids & Family, You

4.71.1K Ratings

🗓️ 23 May 2022

⏱️ 10 minutes

🧾️ Download transcript

Summary

As inflation continues to rear it's ugly head in 2022, prices are going up and up, meaning budgets are getting stretched thin. Inflation is essentially another form of scarcity, Jesse points out, albeit involuntary scarcity. Jesse reminds us that scarcity is what drives us to be creative with the budget, and get more clear about our values.

Budgeting is also an active process, so this time of inflation is a good time to dig deeper into every category, find the things that are auto-pilot and re-evaluate whether they shoud continue to be so. By exercising your Four Rules muscles, you can stay positive and confident about your financial strategy even when economic prospects are alarming.

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Transcript

Click on a timestamp to play from that location

0:00.0

Hello wineappers. My name is Jesse. We come with another episode of the Wineapp Podcast

0:09.0

where we teach you four rules to help you stop and paycheck to paycheck, get at a debt

0:13.2

and save more money. What happens when you're holding money? You think you're saving it

0:18.5

and it's just slipping through your fingers. That is called inflation. It's very common,

0:25.0

but not always at the rate we are currently seeing. As the at the time of this recording

0:30.3

right now, they just released some more inflation numbers and it's looking worse than it was

0:38.5

last month when they released record numbers. It's here to stay for a while. I'm not an

0:44.6

economist, so how do you predict when it will go away? I have no idea. I have pulled

0:51.6

some colleagues, peers of mine that run varying businesses and they are of the mind that

0:59.4

these supply chain problems, which are partially, I'm sure, contributing to inflation,

1:05.0

they think that they could go on for another two years after this, which I think I remember

1:09.9

people saying a year ago that it was going to go on for two years. Anyway, there's that. But

1:15.6

it's important when we talk about when you think about inflation and you're sitting there,

1:21.2

pumping dollars into your car. It's important that you recognize that what we're really talking

1:27.4

about is just a, I mean, essentially it's another category in the budget if you wanted to view it

1:34.8

that way. There's an imposed upon you priority that's now sitting there called inflation,

1:42.5

where everything's just getting more expensive. All of your categories are just kind of being

1:46.1

inched up. And in this instance, where scarcity is even more scarce, something that we hear

1:55.2

embrace by creating scarcity via the budget, you're feeling a more of a pinch than you felt in

2:01.9

the past. And that is just, that is still just scarcity. But maybe you're like, Hey, Jesse,

2:07.4

I'm not self-imposing this one. I would prefer that it not be imposed upon me. I get that absolutely.

2:14.0

But it also is what it is. So what do we do here? Do we have a different strategy for when

...

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