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The YNAB Podcast

Savings With a Purpose

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

🗓️ 18 April 2022

⏱️ 7 minutes

🧾️ Download transcript

Summary

Jesse shares some case studies from the Mecham household, where he has taught his kids to budget their savings the YNAB way, giving those savings dollars a job. The kicker? Their savings sit in the same checking account as their fun money. With practice and the four rules, however, they have developed the discipline to spend only what they have budgeted for each purpose.

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Transcript

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0:00.0

Hello, whenever's my name is Jesse Mekin with another episode of the One Am podcast where

0:09.4

we teach you four rules to help you stop it from paycheck to paycheck, get at a debt

0:13.0

and save more money.

0:15.1

But we all know that saving without a purpose is just money waiting to be spent on something

0:19.8

that is not exciting, not as exciting as what you could possibly conceive of.

0:26.4

So our advice is always, don't just have a big pile of money that you call savings.

0:31.4

That's the revolving door of savings.

0:33.1

Money goes in, money goes out, you don't know what happened and you wonder why you just

0:38.0

aren't getting ahead.

0:39.0

You're supposed to be saving, you should be saving, you want to be a saver.

0:43.1

But savings that isn't given specific jobs tends to just kind of what loses its purpose

0:49.4

and it wanders away.

0:51.1

One little story.

0:52.1

So our second oldest, all our kids.

0:56.2

We tell, and you'll read this in the One Am book and I was talking about this with Danielle

0:59.7

who's a part time support specialist for us.

1:03.7

And she was asking me about the book.

1:04.9

She just was just in this part of the book where we're doing the kids and money thing.

1:09.1

And at the Mekam household, and it's the Mekam household, right?

1:11.8

We do 10% giving and then you split the rest in half, half you can spend half you save.

1:17.9

And she was asking, well, is it just savings for savings?

1:20.0

Like what's the purpose of the savings?

...

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