Satisfy the Joneses: Part Four


It is time to test with Joe and Josie Jones: our hypothetical average American household as they splashed through July with unemployment earnings continuing to stream (for the time being ), temperatures continued to climb, and as some of the glow of a new funding began to burn off.

Along with also a short favorable note before we start: there is not any one-size-fits-all budget, along with fiscal images seem quite different from 1 household to another. We are simply giving a made-up illustration and with the median family income looked like a wonderful place to attempt to do that.

A Quick Recap

Component 1: Budgeting in April 2020

  • Hi, international pandemic
  • Joe and Josie began a funding
  • Joe’s income decreased 30percent
  • A $3400 stimulation check came
  • They managed to budget their expenditures for nearly two entire months with all the cash they’d

Component 2: Budgeting in May 2020

  • Joe and Josie budgeted using the new low-income
  • Josie got laid off and registered for unemployment benefits

Part 3: Budgeting at June 2020

  • Due to this stimulation money along with also a tax return, they had the entire month of June already budgeted for if they began the month
  • They had a cash-rich month involving unemployment benefits and deferred student loans
  • Their charge card balance remained steady
  • Together with their money inflows, they financed through August, setup a”Next Month” class, set up a”Christmas” class, and allowed $300 to get a camping holiday.

 Is it only me or are we actually beginning to get connected to this made-up household? I am cheering them with fist pumps all around.

They Are 3 Months Into Budgeting…

Joe and Josie have been budgeting today for three months. It has been a strange time to get a new skill like budgeting, but boy are they happy they did. It is difficult to put into words that the degree of control they have felt despite everything happening in the world, however they feel like there is some good stone under their toes today, where until it felt as though they were attempting to stand on lily pads.

Every couple of days they are learning something new, and Josie actually sort of likes to funding. It’s enjoyable to assign paychecks to groups and see the bubbles green. 

Joe, on the other hand, is a bit more than it. It seems dull. It feels just like self-control to not invest in money, and they have still had their fair share of cash , even though with much less of a profound bite than previously.

And $300 set aside for holidays last month? This was the green light that they had. They headed north to get a crossover from the lake and unplugged from all (yes, such as their funding ). The 300 turned into $489 between ice cream cones on warm sunny days, additional firewood, s am ores provides, and a couple of emergency swimsuits once the kids’ equipment was left in the home. Surethere was some remorse when Josie cleaned up the financial institution from the times which followed, but cash was transferred around and all was well on earth once more. Plus, she’d do it all over again when she needed to, even if this ice cream had price twice.

The July Budget

Josie continued to find unemployment benefits during July (though who knows what that’ll look like at August), and Joe is still working at 70percent of his previous income with no change in sight. Now they’re three months to budgeting, the Reports within their funding are begun to prove more useful.

Let us look at a few different reports today they have three weeks worth of spending information.

Income v Expense Report

Let us consider the money that they earned for . the cash that went from the Revenue v paychecks report. The report below shows the inflow and outflow of money from May of 2020 through July 2020.

Income v Cost account for May 2020 during July 2020

across the ground, you find the amounts are green with some fairly remarkable net income gains every month. In the previous 3 months, they have been a mean of 2700 net favorable monthly (thanks to a tax return, stimulation cash, and beefed up unemployment benefits). 

Put a different way, that means every month that they had been earning more cash than was heading out every month.

Spending Totals Report

The following report we look at reveals spending between their demands (in purple) and desires (in blue). Along the ideal hand column, we could also see they are spending an average of 3,563. 82 a month, which seems like quite a wonderful number to get in front of them.

YNAB Spending Trends Report
Purple reveals spending “Requires” and gloomy displays spending “Wants”

Spending Trends Report: Groceries and Eating Out

Now let us look at their meals spending habits over time by breaking the grocery store and eating out classes. From the graph below, you can view money spent on markets in purple and cash spent on eating out in gloomy. 

There was a small spike in June if Josie was pressure baking soo many apple pies, but it leveled out into paying an average of 584 involving both per month. It is a good deal less than they had to invest on these 2 types, but it really does not feel that much different, they are just more aware of where their money goes.

YNAB Spending Trends Report: Groceries
The Spending Trends report is narrowed to demonstrate spending on groceries (purple) and eating (blue) and reveals average spending on meals is $585/month. )

Net Worth Report

The previous report we would like to emphasize is Joe and Josie’s net worth report: also it is a leading story. In the report below, the orange bars reveals their credit card debt whereas the grim shows their resources (they do not possess their mortgage, student loans, or automobile loans put up in YNAB nevertheless ). It is possible to view their credit card balance has really gone down marginally and their money has always risen. In the previous 3 months, they have improved their net worth (assets minus debts) 84.5percent from where they began: it has gone up ,877, plus they finally have a net value of $10,645. Wow!!

YNAB Net Worth report
Orange bars reveal debt remaining stable and blue bars show assets steadily rising

Yep, a part of the excess increase resulted from those authorities inflows, however the previous 3 months are much more transformational for their financial situation than they could have even attained.

What will they do with all the chance they have just been given?

With Josie’s beefy unemployment appearing somewhat different as they go into August (the additional $600 per week only died on July 31st), they are continuing to be quite conservative with their money–preferring to continue to funding their cash as opposed to pay down credit card debt.

You are able to see just how they sanded their cash :

In the start of Augustthey had been budgeted well into November.  That seems like a great runway. As soon as it’s shaky if there’ll be an additional round of stimulation payments, although their unemployment benefits only probably took a sharp nosedivethey believe very much in command together with all the money that they have.

Deep exhale.

Until next time! 

Practice the YNAB Weekly Roundup to see what happens next for Joe and Josie Jones.


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