- 1.Budgeting my way towards Financial Independence
- 2.The most important FIRE ratio: Savings Rate
- 3.How I achieve a plus 80% Savings Rate and is it the key to FI?
- 4.Cafeteria plan: improve wants & needs + take-home salary through self-chosen benefits
- 5.Frugal with a twist
- 6.My monthly Savings Rate report: October 2019
- 7.My monthly Savings Rate report: November 2019
- 8.My monthly Savings Rate report: December 2019
- 9.My monthly Savings Rate report: January 2020
- 10.My monthly Savings Rate report: February 2020
- 11.My monthly Savings Rate report: March 2020
- 12.My monthly Savings Rate report: April 2020
- 13.YNAB vs Excel: my budgeting revisited
- 14.My monthly Savings Rate report: May 2020
- 15.My monthly Savings Rate report: June 2020
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The aptly named budgeting tool YNAB, short for You Need A Budget, stopped supporting their legacy tool YNAB4 as of 31 October 2019. I’ve been an avid user of the tool for over 7 years, but, because of the end of their extended support, I’ve been meaning to see if a change is needed. As a result of the end of support, I decided to see if I should move away from it completely or stay. It took up till now since I wasn’t sure what to do. Move to the new YNAB, and pay a subscription fee -the horror!- or move to good old Excel spreadsheet.
As a retail customer, this lack of support shouldn’t really hinder the use of YNAB4 till Windows for some reason changes in such a way that it breaks YNAB4 (highly unlikely!). No, the real issue for me was the lack of new features. It might seem strange given a budgeting tool shouldn’t be that complicated but bare with me.
YNAB4 vs new YNAB (nYNAB) features
When nYNAB came out, they actually made a transition guide in which they explain the differences between the old YNAB4 and the new tool. While some of these features are less interesting, there are some things that I was interested in.
My top changes
The following features or changes are what I would consider as nice to have but not what did it for me.
Other notable changes
- Better syncing: By moving away from dedicated software to an online tool. No dependency on Dropbox and no cross-platform compatibility issues. Though there could now be cross-browser issues -looking at you Internet Explorer!- when implementing new features.
- Direct Import: Not really useful for Europeans since only recently with the introduction of PSD2, will other non-banking software be able to retrieve banking data.
- Use of colors: This helps see at a glance if a category is funded or underfunded: It’s a nice extra and it helps visually see at a glance where you need to pay attention to.
To Excel or not to Excel
After checking the new features I still had a mixed feeling about it. Sure, there were improvements, but were they worth the subscription model? Let us be honest, they do this get a more stable income stream instead of having to continuously find new users. So, next was to look at my main alternatives. I checked the likes of:
However, none were really what I was looking for:
- A clean, no-nonsense interface
- Small to no learning curve
- No ads
- Not purely US-focused
Given all of the above -and a bit of bias- I didn’t go with any of the other tools. With none of them catching my attention, I decided to try good old Excel as an alternative.
(Excel) spreadsheet galore
I downloaded and used numerous pre-made (basic) sheets. There are a ton out there so I figured one should work for me, right? Well…
They “worked”, but the main thing that hindered me was that it was cumbersome. Having to write and tweak your own sheet might seem fun for others, but, at least at the moment, it is something I’m struggling with. It gives me a feeling of dread instead of enjoyment. While this feeling isn’t helping me looking at the Excel as a viable option, it’s clear there are benefits.
The benefits are known of course. You can change the spreadsheet however you want, add or remove specific formulas, etc. You are not bound by the schedule of a third party. If you feel the need to change something you can. You can take this in the broader sense as well. YNAB might not have the features you want or the features don’t work as you expect. Just go to YNAB’s support forum to look at recent examples of this. In Excel you can easily add your assets such as investments and property but also your liabilities. Additionally, you don’t spend Over 70 EUR per year on a tool to help you save money.
Basically, with excel you have complete freedom. This can be a problem of course. It’s one of the main reasons I’m still leaning towards YNAB. There are quite some limitations of Excel.
When talking about limitations it can be good to compare to YNAB. It takes most of the work of your hands allowing you to purely focus on budgeting. It saves time and energy. It’s a system that doesn’t need maintenance and it’s constantly improving. It provides a better, more efficient interface than Excel.
Think about the following: your partner might want to pitch in from time to time, or sooner or later the person managing the budget will change. If that happens it’s much easier to help them be engaged from the beginning thanks to a dedicated budgeting tool. You might actually keep a true budget instead of a ledger.
Reviewing Your (shared) transactions and resolving any discrepancies, aka budget reconciliation, is also very simple. YNAB walks you through the process of reconciling your account. When you roll your own spreadsheet, it’s surprisingly complex to allow for cleared and uncleared transactions.
All things considered, I don’t need budgeting that much, and while the nYNAB features are cool, they don’t tip the scale a whole lot in favor of nYNAB, but it is tipped towards it. For me, it’s all about having a place to keep a clean record of my income and expenses as well as my assets and liabilities. The interface of YNAB provides that clean tracking. Even as I’m fighting towards FIRE I can use this app to track my different portfolios.
For these reasons, I got the subscription of YNAB. Before subscribing I checked out their cancellation policy to see what was possible if I decided to focus on my own excel spreadsheet after all. I’m happy that they have a “Don’t Pay for Stuff You Won’t Use policy” (“Cancellation,” 2019). This will allow me to switch once I have set my mind to put some time and effort into a spreadsheet.
Finally, would I recommend others to go for nYNAB? Is YNAB worth your 80 dollars a year? Even after evaluating everything I’m reluctant to say I would absolutely recommend nYNAB over Excel.
- You already have your things in order budget-wise? A simple Excel could be all you need and there are a plethora of excellent templates available.
- Are you struggling and living paycheck to paycheck? Definitely give nYNAB a try; there is a 34-day free trial.
- Transition guide. (2016, March 30). You Need A Budget. Retrieved May 9, 2020, from https://www.youneedabudget.com/guide/transition-guide/#thats-new-features
- Cancellation. (2019, January 9). You Need A Budget. Retrieved May 10, 2020, from https://www.youneedabudget.com/cancellation/