Great Article on the Value of Categories

I came across this fabulous article on the YNAB blog that showed the power of the spending plan and the importance of revisiting it periodically (in our case, with a PRG) to modify the spending plan as our needs change. The article was written by Jesse Mecham, founder of YNAB.

Please note that this is not DA or 12 Step material, but I thought the concepts were valuable for those of us working DA.

You certainly don’t have to use the YNAB software to appreciate this article.

Here is the beginning of the article:

My 2012 Budget Revisited. Budgets are Your Value Compass, But Which Way is North?

Posted on March 7, 2013 by jesse
For years I’ve taught people that your budget is simply a tool to make your money do what you care about. A budget is your Value Compass. In the end, a budget aligns your money with your values. You find contentment there.

Last Sunday night (and each morning since), I’ve been thinking a lot about the values part of this idea. The thoughts were spurred because I was setting up our March Budget (sure, a few days into March, but consistency is key here, not rigidity ;))

I was staring at our line items and amazed at the amount of money that flows through our household. That prior sentence is completely relative of course. I was amazed five years ago, and I’m amazed today.

The Budget can start to be a Thing on its own. It can morph into something that isn’t truly what you value. It morphs because you’re in the habit of doing it one way, you’re comfortable with how things are going (no debt, living within your means, paying cash for larger expenses) and you don’t call the line items into question any longer.

Click here to read the rest of the article.

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