The Four Rules | YNAB (2024)

The magic is in the method. Follow these four simple rules and change your relationship with money.

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Change your money mindset

The YNAB app doesn’t work because it’s pretty (it is, though) or because it has amazing tech (it does, though). It works because it’s built around four rules designed to change your financial future.

Rule oneGive Every Dollar a JobRule TwoEmbrace Your True ExpensesRule threeRoll with the PunchesRule fourAge Your Money

rule one

Give Every Dollar a Job

Show your money who’s boss and spend with confidence.

How Rule One works

Every time you get paid, ask yourself, “What do I need this money to do before my next paycheck?” and assign every dollar you have available to an expense category until there are zero “unemployed” dollars left.

Step 1

Get some dollars.

Step 2

Decide what those dollars should do.

Step 3

Follow your plan.

Why it works

You’ve already mapped out a plan, so instead of stressing over every little (guilt-inducing) spending decision, you’re just following your own instructions. No raise, windfall, or inheritance required. (Though all of those would still be nice.)

rule two

Embrace Your True Expenses

Transform large or infrequent expenses into something more manageable.

How Rule Two works

Future-proof your finances by anticipating large, non-monthly expenses (they’re going to happen!) and breaking them down into smaller, manageable chunks of monthly saving instead.

Step 1

Find a big, infrequent expense.

Step 2

Create a target to fund it monthly.

Step 3

When that expense arrives, just pay it!

Why it works

Holiday shopping, home repairs, and annual insurance premiums are a fact of life. Turning those big, scary expenses into smaller monthly bills helps you make fully-informed spending decisions...and allows you to sleep a little easier.

rule three

Roll with the Punches

When you overspend in an expense category, just adjust. No guilt necessary.

How Rule Three works

If you run out of money in one category but still need (or want!) to make a purchase, just move money from another category to cover it. No shame or guilt needed—it’s your money and you can spend it how you want.

Step 1

Choose a category with overspending.

Step 2

Move funds from another category to cover it.

Step 3

Move on with your life—no guilt!

Why it works

Plans change. Managing your money shouldn’t feel punitive or restrictive. You’re the one who decides what your dollars should do and you’re free to change your mind at any time!

rule four

Age Your Money

Increase the time between when you earn your money and when you spend it.

How Rule Four works

As your awareness about money grows, you’ll naturally start spending less. Eventually, you’ll be paying bills with money you earned more than thirty days ago. The end result is more breathing room in your financial plan.

Step 1

Be purposeful in your spending.

Step 2

Consistently spend less than you earn.

Step 3

Watch that Age of Money grow!

Why it works

When you are spending money you earned last month, you create a built-in buffer. One day you’ll replace that pile of bills waiting on money with a pile of money waiting on bills (or something more fun, like annual theme park passes!)

Flip the cards to reveal your financial fortune with the four rules

Rule one

Give Every Dollar a Job

With Rule One you will…

Make more intentional spending decisions based on what’s important to you instead of mindlessly spending money based on your account balance—and regretting it later.

Rule Two

Embrace Your True Expenses

With Rule Two you will…

Stop feeling a tidal wave of dread every time an unexpected repair or a forgotten annual expense appears. You’ll just pay it (without drama) with the money you’ve saved.

Rule three

Roll with the Punches

With Rule Three you will…

Realize that being mindful about money isn’t restrictive, it actually allows you the freedom to make choices about how you spend. And to change your mind, without guilt!