The Rule Three Escape Hatch

The Jesse Mecham Show

YNAB

Kids & Family, Education

4.7 • 1.1K Ratings

🗓️ 10 August 2020

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

YNAB'er Elizabeth wrote into the podcast asking for clarification of Rule Three -- can you use it too often?

Simply put, If you aren't reaching your goals, Jesse says, you're misusing Rule Three. If you aren't saving the money you thing you should be saving, then Rule Three has become an escape hatch for your budget, instead of an empowering tool.

Scarcity is a powerful motivator for budgeting. Embracing the fact that you have limited dollars, and that you cannot rob from your future self to pay unexpected expenses today, means you will have to become comfortable saying "no."

If you'd like to write into the show, email Jesse your questions at podcast@youneedabudget.com.

Transcript

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0:00.0	Hello, Winebbers. My name is Jesse Meekam, and this is podcast number 440 for
0:08.8	Wineab, where we teach you four rules to help you stop it in paycheck to paychecks, get out of debt and
0:12.2	save more money. I got a question from, let me
0:16.4	double check the name, I think it was, yep Elizabeth. I got a question from Elizabeth.
0:20.2	She wrote in to podcast at unit budget.com. If you have a question that you would like me to answer on the
0:23.8	podcast I might start doing some kind of a Q&A deal where you can ask me any
0:27.4	question and I'll give you an answer if the question is dumb I'm not
0:29.7	going to answer it but email me podcast, podcast at you need a budget.
0:33.7	com. Any question you have and I will try and answer all questions
0:37.9	provided they're not done on the air.
0:41.0	Okay, so Elizabeth asked a killer question. She said, is there a time when you're using
0:45.0	rule three too much? Yes, yes there is. Here's when you're using it too much if you aren't
0:52.3	hitting your other goals.
0:53.0	That's it. So if you have a goal to pay off debt and you're not paying it off as fast as you think you should
0:59.0	and that's after getting to know your budget and your situation a little bit. That's not after looking on Instagram to see, you know, record setters for debt pay off.
1:08.0	But when you know your situation and you just have this feeling like, I think I should be doing this faster yeah you're
1:15.0	probably using rule three using escape hatch if you are not if you keep having to
1:19.7	raid rule two funds those true expenses and you actually have one pop and you weren't ready with the money and you had to Rule 3 for that.
1:28.0	And you're Robin Peter to Pay Paul, you're probably using Rule 3 as an escape hatch.
1:32.0	Scarcity is valuable. using Rule 3 as an escape hatch.
1:32.6	Scarcity is valuable.
1:35.2	And if you're answering your scarcity issue,
	...

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