After I’d been on YNAB for a year or more, I experienced the phenomenon known as “YNAB broke.” This happens when you have a bank account full of money — in my case more money than I’d ever had in my bank account — and still feel like you have no money to spend. YNAB broke is real. It doesn’t sound that great, but it’s actually cause for celebration!
If all your money is assigned into categories for the future and then an unexpected expense or opportunity arises, it’s so important to look at your budget, not your bank account to see how you can handle it. In order to cover that unbudgeted expense you’ll need to move money from a funded category (or categories) to cover it.
According to Rule Three, Roll with the Punches, that’s completely OK — especially if it’s done before the unexpected spending. But figuring out how to cover the spending does require a lot of thought and careful consideration. And it leads to the strange experience of feeling broke when you have lots of money.
If you’re new to YNAB and haven’t yet experienced YNAB broke, I encourage you to take note of it when it (inevitably) happens. And then celebrate, because it means you are being a responsible caretaker of your budget.
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