YNAB 4, also known as You Need a Budget (YNAB) Classic, was released 12 years ago (how do you do, fellow kids?). And unlike the current iteration of YNAB, it wasn’t a subscription service. YNAB 4 required you to pay a one-time fee of $60 and the app was yours to do as you please.
Even accounting for inflation, that was quite a deal. Paying $60 for what seemed like a lifetime support system for all your budgeting needs? Sign us up as well!
Unfortunately, YNAB now costs $14.99 a month or $109 annually (plus tax). This begs the question, is it worth it? Let’s do the math and find out!
How Much Money Can You Save By Using YNAB?
According to YNAB, most of their users save $600 on their second month of using the app. After a year of YNAB-powered budgeting, you should save $6,000 on average. So, in the long run, you can expect to save roughly $500 each month with YNAB.
Based on these numbers, there seems to be overwhelming evidence that YNAB is worth its price point. But, of course, things aren’t as simple as it seems. Since anyone who decides to start saving up will save a certain amount even without the help of a personal finance app.
Recommended article: 4 Different Types of Budgets & How to Choose the Right One
How Much Does An Average American Save Each Month?
The average American saves about $195.89 each month according to the Bureau of Economic Analysis (BEA).
- According to the BEA, the average American will save 3.85% of their disposable income every month in 2024.
- The BEA has also reported that the average disposable income in the US as of the fourth quarter of 2023 is $61,058.
- Since this is an annual figure, we’ll need to divide $61,058 by 12 (the number of months in a year), and we’ll get the average monthly disposable income in the US, which is $5,088.16.
- Finally, we’ll need to get 3.85% of $5,088.16, which brings us to our final number: $195.89.
Is YNAB Worth its Subscription Cost?
Yes, but only if you can stick to your budget. In the long run, YNAB will increase your savings by $304.11 each month. So you can think of it as paying YNAB 5% of the savings you’ve generated because of it (if paid monthly).
If you’re wondering how we reached the $304.11 figure, here’s how we did it:
- The average YNAB user will save $500 each month.
- The average American will save $195.89 each month
- This means that YNAB increases your savings by $304.11 each month if everything goes according to plan.
Note: These calculations assume the best-case scenario. At the end of the day, the value that YNAB provides you is dependent on whether or not you can commit to your budget in the long run.
