6 Budgeting Lies – and How to Fight Them

Having a budget is hard. Following it is harder. Many people find excuses as to why they can’t live on a budget, why it doesn’t fit in with their lifestyle. I’m here to tell you that these are all budgeting lies and share the truths you can use to combat them.

1. I don’t need a budget. I keep track of my finances and spending.

First of all, great! If you keep track of your finances and watch your spending, you are on the right track. But, just because you are watching your finances doesn’t mean you don’t need a budget. Everyone needs a budget. Period. Even if you watch your finances and track your spending, if you aren’t telling your money what to do, it can have a tendency to walk away from you. A budget is a plan for your money, where you can continue to track your finances in a structured format. When you have a plan for your money, you will have the ability to really track your spending, and coordinate where each dollar is going.

2. I don’t have time to budget.

If you don’t have time in your week to set aside one hour to budget, then your priorities need to be readjusted. Because one hour a week is really all it takes to get your budget in order. When you take the time to put in the hard work, your family will thank you. It won’t happen overnight, but as time goes on, your budget will start to fall into place. Step by step, week by week, you will start to notice a change in your finances. It will take time, but it will be worth it. If you don’t have time to budget, reevaluate your schedule and your priorities. Make time to budget so you can become financially independent.

3. I’m too broke to budget.

You might be thinking, a budget isn’t for me. I have no money, I live on pennies. There is no way I could even live on a budget in the first place. That is the exact reason why you need a budget! Just like above, everyone needs a budget. PERIOD. If you think you’re too broke to budget, that’s the exact reason why you should start making one. Writing down your income minus your expenses might help you to realize why you are broke all the time. You can find leaks in your budget, and see where you need to repair them. And understanding your overall financial picture will be so important in making financial decisions, as well as breaking the negative cycle.

4. A budget requires difficult math, and I’m bad at math.

This lie is so far from the truth. First, a budget requires very basic math. Income – expenses = zero. Basic math. From there, you can use a calculator. Others have grown much more complex with their budget, and if you are a math/numbers person, you can certainly dive more in-depth into your budget. But a basic budget only requires basic math – addition and subtraction of your income and expenses. And it is completely necessary for your financial health. So please, start now.

5. Budgeting is only for people struggling to make ends meet.

Opposite of number 3, people who are doing “just fine” with their finances – paying their bills every month, not struggling… Often times think that they don’t need a budget. I’ll say it again. Everyone needs a budget. PERIOD. If you spend money, you need a budget. In fact, people under this category often times need a budget more so than those who are struggling! A  budget is simply a plan for your money. And if you don’t have a plan for your money, if you don’t tell it what to do, it will walk away from you, often in surprising ways. It could be in the form of eating out or too many trips to the department store. Create your budget, so you can be in control of your money, and not the other way around.

6. A budget will restrict my spending. I won’t be able to have any fun.

In fact, quite the opposite is true of a budget. When you live on a budget, you have the freedom to spend however you’d like within the realm of that limit. You know your bills will still get paid, the groceries can be bought, and there will still be a roof over your head if you buy a pair of new shoes or go out to dinner. There is never a question or debate over buying something as an indulgence because the money has been pre-labeled within the budget to do so. When you go see a movie, there is money to do it within the entertainment budget. If there isn’t money there, you don’t go. Whatever your passions are, your joys are you budget for them accordingly. The beauty of the budget is it’s flexible, and it gives you the freedom to be able to spend without the worry or the fear behind it.

Knowing the lies you tend to tell yourself about budgeting, and how to counteract them, can help you set yourself on the right track for your finances. Budgeting truly is for everyone. Rich or poor, young or old, living on a budget helps set you on the path towards financial freedom. It teaches you to live within your means and allows you to understand your spending, without feeling guilty or afraid of consequences.

To get started on your budget, start here.