Stop Believing These Lies About Budgeting

With current cultural views of money, these budgeting myths are rampant in our understanding of finances. Unfortunately, they are completely inaccurate. In fact, if you believe these myths, your financial situation may be in trouble. But don’t worry. Here are 5 truths to change your view on these myths. 

 

5. I’m too broke to budget. OR Budgeting is only for people who are struggling to make ends meet. 

A budget is for EVERYONE. Regardless of income, be it $10,000 a year to $10,000,000 a year, everyone should manage their money with a budget. Knowing where and how you spend your money gives you control over your money, not the other way around. If you think you’re too broke to budget, then you should definitely have a budget. You would be surprised where your money is walking away from you. Same goes for the person who thinks their finances are under control. You definitely should have a budget. You will be surprised how your money is walking away from you. Seeing a pattern? Rich or poor, budgeting is a useful tool in your financial toolbox. It will set you up for financial success. Don’t know where to start? Make sure you grab our free budgeting tool to get started.

 

4. I budget by keeping track of what I spend every month.

This is great! It is a great start to a budget. But keeping track of what you spend each month is not the same thing as a budget. Keeping track of what you have spent is looking at your past finances, while a budget is a plan for the future. And while it is good to keep track, your money will spend itself unless you tell it otherwise. And a budget is just that – having a plan for every dollar you will see, and telling it what to do so it works for you, not against you.

 

3. I don’t have time to budget.

A budget doesn’t take more than a few hours each month if that. The first time you try to set up your budget, it will take a lot of time. Between analyzing your purchases, figuring out the necessities, and then returning to the budget after a few weeks of spending to make adjustments, it will take many hours the first month. Hopefully, after you set it up, it will become more and more automated, so that you will only have to spend about an hour a month managing your budget. Not having time to budget is just an excuse. Just do it already!

 

2. A budget requires complex math, and I am not good at math.

A budget DOES NOT require complex math. If you are a numbers person, and like to make spreadsheets, your budget certainly can have complex math. However, it is not necessary for a basic budget. The most complex math you should be doing in your budget is income – expenses = zero. If you can add and subtract, or use a calculator, you can have a budget. Simple as that.

 

 

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

This is probably the worst excuse to use because it is the furthest from the truth. A budget does quite the opposite. Before we had a budget, I felt guilty for every purchase I made, as simple as a new nail polish. Now, with the budget, I have the freedom to spend money on things, both that I want and that I need. Why? Because I know that the budget allows me to. I have the money set aside in the budget to be able to purchase these things. Date night, dinner and a movie? Great, we have the money in our entertainment fund every 2 weeks. Need a new pair of tennis shoes? Well, there is money in our clothing fund to be able to purchase them. A budget does not restrict your spending. It gives you the freedom to spend, without the guilt or financial struggles at the end of the month.

 

Are you convinced yet? Having a working budget is the first step towards financial freedom. If you believe any of these myths, you are only holding yourself back from gaining control over your finances. Take the next step. Create a budget. You’ll be glad you did.