Many people have a negative opinion about budgeting. Many people imagine that a budget involves spending hundreds of hours tracking every cent spent, and then having to calculate difficult sums. It is not possible to live like this. Here are five budgeting myths that are common and the truth.
1) It is difficult to set a budget.
Many people believe that setting a budget can be difficult. It requires complex math or long hours spent slaving over large sheets of paper or Excel spreadsheets. There are many methods to set a budget. Budgeting can be complicated if you like to work with numbers or have a keen eye for detail. There are also budgeting options that are simple and straightforward to set up. Finding the right budgeting method is up to you. You won’t stick with the budgeting approach you choose if you don’t feel comfortable.
2) Maintaining a budget takes time and paperwork.
While maintaining a budget requires you to be vigilant about how your spending and budget compare over time (and making adjustments if necessary), there are very few budgeting methods that require much effort and time. You will usually have a quick glance at your budget after you get paid. Then you can get back to spending your money.
To use a budget, you must be in serious financial trouble.
Although a budget is a great tool for helping someone in financial trouble to get out of debt, it’s not limited to those situations. A budget is something that anyone can use. A budget is the best way for you to avoid financial disaster. A budget can be used to save for expensive items (such as a vacation or the latest gadget) that you know will be in your future.
4) You don’t have to suffer if you have a budget.
Budgets are often criticized because people see them as eating cheap noodles in a darkened room with only one candle. However, a budget does not mean that you must live on it. A budget is about figuring out what you want to do and how much money you can afford to pay for them. You may have to make some cuts in certain cases. If you set up a budget to make yourself miserable, you will never suffer.
Budgeting is the art of not spending money.
Budgeting is, paradoxically, the opposite of spending less money. It’s about finding the best way to spend your money. Yes, you should have a budget that allows for savings if it is possible. Savings are just putting money aside for the future. Budgeting is about helping you to save money on small things that you don’t need right now, so you can invest the money in big purchases you want later.
These budget myths are now proven to be false. Start today to set up your budget and reap the benefits!
