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The Jesse Mecham Show

Rule One Broken Down

The Jesse Mecham Show

YNAB

Kids & Family, Education

4.71.1K Ratings

🗓️ 19 August 2019

⏱️ 6 minutes

🧾️ Download transcript

Summary

Jesse goes back to basics and breaks down YNAB's Rule One: Give Every Dollar A Job.


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Transcript

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0:00.0

Hello, Wienabbers. My name is Jesse Meekham and this is Podcasts,

0:09.2

number 389 for Wienab, where we teach you four rules to help you stop

0:12.4

of paycheck to paycheck, get out of debt and save. And Yeah, we've just been chatting about a lot of different things, but today let's hit the basics.

0:24.8

So basic in fact, that I want to talk about Rule 1.

0:28.4

The reason Rule 1 is Rule 1 is Rule 1 is because it is the most important rule.

0:35.0

Every other rule is actually just a subset of that first rule.

0:40.0

Rule 1 is to give every dollar a job. Let's break it down word for word. Give. But you

0:48.0

know you're bestowing. It's it's you being benevolent and it implies that you're in control it implies that you get

0:57.8

to decide you are the benefactor and you can basically tell those jobs that you own full and

1:06.7

outright you can just give them the job that you want them to do so So you give, because you're in control.

1:15.0

You are the supreme czar of this situation.

1:21.0

So you give. You don't assign, you give. You're being kind, right? And you're being

1:28.4

thoughtful and you're being benevolent. So you give every, you give every dollar a job let's talk about every you give every dollar a job let's talk about every you don't let a single dollar off the hook

1:40.0

because if you do then it does not keep its sanctity as a zero-based budget.

1:47.0

The trade-offs disappear, but if you're giving every dollar a job, that means every single dollar has a purpose, has some intent behind it

1:56.5

because the benevolent dictator has decided that's how it should be and has

2:02.2

given those jobs to those dollars.

2:05.2

So every single dollar has to have a job so that if you ever need the jobs for something else,

2:10.2

Rule 3, we'll talk about that in a couple weeks. You can feel the trade-off and

2:17.4

that feeling of the trade-off is probably the most important thing about budgeting, period.

2:25.3

But if you don't give every dollar a job,

2:28.1

then you aren't feeling that trade-off.

...

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