Budgeting, it’s got a bad reputation. Most people believe the budgeting myths that say you have to spend hours tracking every single penny they spend, followed by what their monthly expenses are, and how much their paychecks add up to at the end of the month. Many people also think that a budget is going to restrict their spending and force them to stay home every single night…good-bye fun! The truth is, budgeting doesn’t have to be like this, unless of course you want it to be.
5 Budgeting Myths & The Way It Really Is
Setting Up A Budget Is Hard. Many complain that setting up a budget is hard work and requires you to spend long periods of time stuck behind a desk or at the kitchen table doing complex math on a spreadsheet with an over flowing pile of receipts and bills constantly falling to the floor. Just thinking about this scenario is enough to make my head spin and I like to budget!
The truth is that there are many different ways to go about setting up a budget. Those individuals who are more detail oriented and like working with numbers might decide to choose a more complex budgeting system. However, if you’re like me, and just want a simple and user friendly budget then there is a budgeting method out there for you too.
There are literally hundreds of ways to create a budget and if you are tying one system and don’t like it or are not comfortable with it then try another. Try to force yourself to use something you don’t like and you are not likely to stick with it. In the end, what really matters is finding a budgeting system that is right for you.
Budgeting takes a lot of time and paperwork to maintain. Maintaining a monthly budget doesn’t mean you have to sit and analyze your spending every single day. Instead maintaining a budget means checking in on it weekly to make sure your spending habits and your budget are matching up. Over time you will see where you may need to make a tweak to your budget or spending if necessary. However, in truth very few budgeting systems require a lot of time or hard work to maintain them.
You must be in financial trouble to use a budget. A budget will definitely help someone who is struggling financially. It can help them find their way back out of trouble by seeing where they are over spending or even if they need to add a second job (often called a side hustle) to bring in more income. However, budgets are not limited to this type of situation.
Everyone can and should use a budget. It not only helps you know where your money is going, it keeps it from simply disappearing leading you into financial trouble to begin with! A budget can help you build your emergency fund, save for an expensive vacation or other item, and best of all it can help you
Living On A Budget Means You Can’t Have Any Fun. Living on a budget often gets a bad reputation because most people think it means your suck at home with nothing to do while your living on rice and beans! Good-bye fun!
That simply isn’t true. A budget doesn’t make you suffer, being flat broke because you don’t have a budget does. The bottom line (pun intended) of living on a budget is that you are able to spend your money wisely so that you can do all the fun things you enjoy while making sure you can still pay your bills, save for a rainy day and stay out of the poor house.
Having A Budget Means You Can’t Spend Any Money. In truth, having a budget is the complete opposite of not spending any money. Budgeting is actually working with your money and deciding what the best way to spend it actually is! You should defiantly try to have a set amount to put into savings from every paycheck, but even that money you are setting aside for your future self to spend. It’s all a matter of perspective. Spend it now and it’s gone or spend it latter when you really need it.
Now that you have learned the truth about these five budgeting myths it’s time to get started with setting up your own budget. Remember your budget won’t make you suffer, unless you purposely set it up to do just that. It’s an invaluable tool that will help you manage your money and accomplish all the things you set out to do.
What are you waiting for? Grab a pencil and paper or sit down at the computer and start creating a simple budget today so tomorrow you can reap the rewards it will bring!
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