7 Misleading Myths Of Budgeting & How to Tackle Them
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News flash for you . . . these myths of budgeting are actually excuses in disguise.
“Budgets are not fun.”
“Budgets are hard and complicated.”
“My life is busy and I don’t have time to budget.”
Let’s face it – it’s not fun living beyond our means once the reality of bills sets in.
Budgeting does not have to be an all-or-nothing approach. Nor does it need to be the perfect time to start. Change is scary but don’t let the fear of facing your financial situation head on paralyze you from taking control.
Start by taking a realistic look at where and how you spend your money.
In no way does this mean you have to isolate yourself, eat top ramen for every meal, never turn on the lights, or live without air conditioning.
You need to focus on your – WHY.
Why do you want to take control of your budget? Do you want to stop living paycheck to paycheck? Do you want to start your own business? Do you want to take a well deserved vacation?
Creating a budget is a key step in attaining your goals, while focusing on your why will help you stay on track.
Myth 1: Budgets are a drag.
Budgets don’t have to be boring. Instead, create something visually appealing that you are excited to use. Some pretty paper or colors may be what you need to liven it up. You can find a ton of budget planners out there that jazz up the old black and white look.
It can also make it fun to see your progress week after week and month after month all in one place. Below are my favorites.
Myth 2: Budgets are hard.
Adulting can be rough – I’m with you on that, but budgets don’t have to be! You don’t need to know everything there is to know about money in order to budget. Don’t get defeated because you don’t know where to start.
All you really need to know is this simple equation:
Money earned minus money spent equals money saved
If you can keep your money saved in the positive, you’ll be well on your way to success!
Myth 3: I have too much on my plate to start.
I think we can all make excuses as to why we can’t start. The holidays are coming up, I am focusing on my fitness, I work too many hours, etc.
Well, there is no time like the present! There are many ways you can still budget in this hectic day and age.
- Create a specific budget for an upcoming event.
- Carve out a time once a week or even once a month to review your budget – it doesn’t have to eat up all your spare time.
Your budget may even help lower your stress as you are not as worried about your finances during all the hustle and bustle of everyday life.
Myth 4: Why even bother – I’m already so far behind.
Don’t give up just because your debt seems too overwhelming to start. Debt can be depressing and it can take a toll on other aspects of your life.
Keep in mind, if you don’t start now, it will most likely keep snowballing. You just gotta buck up and deal with it!
If you don’t know where to start or you need some extra help, there are tons of resources out there. Dave Ramsey has a great book on pretty much everything you need to know to get started. He breaks it down into steps so it’s easier to swallow. The book also explains the importance of having a written budget so you can see ALL of the little things we tend to forget about.
Remember, baby steps. You don’t have to tackle all your debt at once, just like you probably didn’t create all your debt at once. But starting somewhere will help you crush it little by little.
Myth 5: My spouse doesn’t share my concerns.
I am a saver and fortunately, thank goodness so is my husband. But I know many couples where this isn’t the case.
If you haven’t already, you definitely need to sit down with your spouse and have a serious conversation about finances and goals. This ultimately goes back to your WHY.
If you’re having a rough time getting them on the same page, you can still try to get your own budget on track alone.
Your spouse may have the same doubts as you once did about making a budget and sticking to it. Once your spouse sees the success of your budget from the small changes you have made, they will probably be more willing to jump on board with you.
Myth 6: If I have one, I can’t go over my budget – like ever!
While you should aim to stay on budget, it’s not the end of the world if you don’t. Budgets should be flexible, not rigid. If you decide to divide up your budget into categories and go over in one, no one is stopping you from making up the difference from another category.
An example – Let’s say your grocery budget is $200 and your dining out budget is $100. You spent $250 on groceries, but only $50 on dining out. Yeah, you are over budget on groceries, but that still puts you on budget overall since you didn’t spend all your budget for the dining out. So in reality, it evens out.
Myth 7: I don’t want to deprive myself. FOMO is real!
Try not to think of a budget as a bunch of rules on paper that inhibit you from fun. Instead, think of it more like what is going to propel you into having more freedom and fun in your future.
It’s easy to get caught up in having the latest and greatest. Keeping up with the Joneses is a sure fire way to get yourself underwater financially. The line can easily be blurred between wants and needs. Do you need clothes, yes. But, do you need to have a designer wardrobe, no – that is a want.
I’m not saying you should deprive yourself all the time. It’s okay to treat yo’self every once in a while. You can also easily build this into your budget.
Life is really more about experiences than physical things. If you value what you have and focus on the experiences you can create, then you can free up ways to lead you to your budget success.
Start by tackling these myths of budgeting.
Remember, there is no time like today to get started! Soon you will be on your way towards making progress on your finances. You can also think about these 6 ways to save more money to give your budget an extra boost!
