#73 - You Need A Budget

In part of my ongoing quest to have, you know, money, I recently started using the budget program You Need A Budget (YNAB). I had originally intended to use Mint.com or some other online budget tool but I did some comparison shopping, came across YNAB, and decided to give it a try.

I was impressed with the YNAB Methodology (more on that later). The strong testimonials from current users were convincing. And it did seem to me - at least based on quick comparisons - that where YNAB was different is that it encouraged/required active planning of where my money was going to go. Whereas Mint et. al are more useful for tracking where your money went.

There are four "rules" in YNAB. For my situation the most important (though notated as #2) is Give Every Dollar a Job. What this means is as you get money/income, you plan out your spending - assign money to categories - food, rent, utilities, etc. Typical budget stuff. All the way down to zero. My first month with YNAB I budgeted what I thought were reasonable amounts to various categories only to see them later blown out. Dining out was a big overage for example. But since my budgeted amounts must equal my income (surprise!), I was forced to steal from other categories (affectionately known as 'whack-a-mole' in the YNAB community forums - which are impressively helpful BTW).

This meant pain in those now reduced areas - no new clothes for TK that month! So, the following month when I had a spending impulse, I found myself asking "And where will that money come from?" And I didn't spend. I also can't discount the fact of simply having your inflows and outflows categorized and known. Nothing like objective data to smack you upside the head.

Now inputting transactions in some kind of register is what any good budget program should do. Where YNAB excels is what you do with those savings. Which brings us to Rule #1 - No More Paycheck to Paycheck. The YNAB methodology is built around the concept of building a buffer. Doesn't matter how slowly or quickly, just keep saving until you have 1 month of expenses. At that point live for 1 month on that Buffer. Income earned during that Buffer month is saved towards the following month. For example, my current goal is to have a buffer by August 2009 - meaning my August paychecks will be earmarked for September expenses. Meaning come Sept 1, I will have all the money I will need until October 1st. At which point the cycle repeats.

If I manage to pull this off I cannot tell you what an enormous stress reliever this would be. No more having to time bills with paychecks. No more trying (and occasionally failing) to play "the float" with a check or debit. No more choosing between gas and lunch on the Thursday before payday.

This running a little long, but to summarize the remaining rules. #3 is Save for a Rainy Day. i.e. plan for irregular expenses - known and unknown. For example the quarterly car insurance always leave me scrambling. Not only in making sure it is paid, but then in scrimping until that next pay period. And living paycheck to paycheck is like a knife edge, anything unforeseen or atypical - i.e. this month's wedding gift I need to buy - threatens to collapse the whole financial house of cards. Previous solution - debt. Current solution - fully funded gift category this month in YNAB - oh yeah!

Rule #4 - Roll with Punches - is only truly applicable when living with a buffer but is sound advice. Basically if you do overspend - and you will! - the overage counts against next month's budget as a whole. This allows you to correct overspending before it becomes a trend. And it doesn't necessarily penalize the category where the overspending (sometimes legitimate) took place.

So, I definitely think YNAB is a good program and good budgeting tool. It is pretty easy to use. The methodology does take some faith, but I can see some benefits already. It feels right to me. I probably won't cross this off until The End, so I can keep on track. Look for a progress report soon. Hopefully I'll be buffered by Aug 1.

#96 - Cheap Thrills

Cheap Thrills by Big Brother and the Holding Company. Janis Joplin's last album with the group before going solo. The big hit of the album is Piece of My Heart, but it does also have a couple of good covers. Plus I kind of like Turtle Blues - an original by Joplin. Also notable for its cover art by R. Crumb.

If I ever have the chance to travel in time I think I'd go to the Monterey International Pop Music Festival. Seems like it would be a good time.

#96 - Blues Breakers with Eric Clapton

Some albums are important in content, some in context. The album Blues Breakers with Eric Clapton by John Mayall's Blues Breakers is, I think, in the later category. Although it is a good listen, composed of half original compositions (by Mayall with one song shared credit to Clapton) and half blues covers, it is probably more notable for being Clapton's transition album/group between The Yardbirds and Cream.

Album highlights include an interesting cover of What I'd Say - the Ray Charles standard. Also notable is Ramblin' on My Mind, which is Clapton's first recorded vocal performance. Mentioning Ramblin' also allows me to mention Me and Mr. Johnson which is an excellent 2004 Eric Clapton album consisting of Robert Johnson covers (though not Ramblin' nor Crossroads). And so I'm not accused of filtering black music through white artists, I do think Robert Johnson's The Complete Recordings is an essential album though not represented on this list. Probably because they don't do compilations.

And speaking of Clapton: Someone remind me for the next 1001 days list that I should learn how to play guitar. Guitar God seems like nice work if you can get it.

#96 - In the Wee Small Hours

Listened last night to In the Wee Small Hours by Frank Sinatra. Wow! What an album. It happens to be the first album on the 1001 Albums... list and it pretty much defines what an album is supposed to be - a set of songs organized around a central theme, deliberately sequenced. I can't think off the top of my head of another album which is so consistent atmosphere-wise. Even the beloved Sgt. Pepper ditches the "concert" theme about halfway through and starts to drag. At least IMHO.

But In the Wee Small Hours keeps invoking a mood from beginning to end. That mood being sitting alone; lonely in the dark. And Frank's voice is absolutely golden.

This is my new break-up album.

#96 - Brothers In Arms & Face to Face

Regarding the last post - I've decided that I'll listen to each of the 1001 albums. Even if I have heard them before. I think it is the only fair way to approach the situation.

First album: Brothers in Arms by Dire Straits - Excellent album - contains the classics Money for Nothing, Walk of Life, and the beautiful So Far Away. And then the title song, which always makes me want to drive around at night smoking a cigarette. And I don't smoke.

Second album: Face To Face by The Kinks. A good listen, though the only song I really enjoy - and give multiple plays too - is Sunny Afternoon, which true to its name is very bouncy and pop. Well, Party Line is pretty good too.

I also realized something. The downside of doing an album list - even one with 4 Kinks albums on it - is it still misses some of the great singles. To wit - All Day and All of the Night, Tired of Waiting for You, You Really Got Me, (Wish I Could Fly Like) Superman, the jokey Apeman - which I happen to like, and of course Lola. Oh, can't leave without mentioning the ballad Celluloid Heroes which always makes me a little sad.

Not sure what I can do about this. Perhaps I'll cross-check against Rolling Stone's 500 Greatest Songs or some other singles list.

#96 & #98 - Music Collection

Short post just to get back into the blogging habit. As of now, I have 5299 songs in my collection. My goal is still 10,000. Which would be adding about 5 per day. Yikes! And I currently have a few duplicates in there since I haven't done #25 - Clean up Mp3 collection yet. Double Yikes!

This is also a good spot to mention #96 - Listen to all albums on the 1001 Albums You Must Hear Before You Die list. I really need to see how many more I have/have to do. Hopefully I can do that in the next 19 days and have my listening plan complete before my first 100 days are up.

One of those albums is Highway 61 Revisited by Bob Dylan which I recently downloaded. And that album is a prime example of why I need to do #96. How could I have gone 32 years without hearing Desolation Row? Personally I blame the American education system. Everybody at birth should be issued an iPod with all 1001 albums on it.

That is socialism I can get behind.