5 Budgeting Myths You Need to Ignore to Succeed
By Roni G. —
Published April 25, 2018
If you are planning on cutting back on your expenses in an effort to save some money, then the first step is to prepare a budget. Preparing a budget and sticking with it is not easy and it can be worsened by a number of budgeting myths that you keep hearing.Once you have decided to implement some sort of discipline on your spending and saving habits, the important thing is to not fall prey to everything that you hear. You need to discern between fact and fiction, else, you are in for a tough time.If you want to succeed in your efforts, then here are 5 budgeting myths you need to ignore.You need a budget only if you are a low-income earnerOne of the commonest myths when it comes to budgeting. Whether you earn high or low, every person needs to exercise control over their spending and save up for the future. It is imperative to learn to manage money and filter out unnecessary spending. It is equally important to keep a close eye on your spending habit. Excessive spending can put you in a lot of danger, especially if you are a high-income earner.Budgets are complex and require too many detailsThis is not true at all. In fact, budgets are quite easy to create and do not require too many details. You need to identify the categories under which your spending can be grouped. In most cases, this includes common categories like the household items, food, entertainment, loans, and miscellaneous. You can create a budget that best suits your spending habits. Always remember that no two people have the same spending habit. You can even create daily, weekly, monthly, and yearly budgets, whichever works best for you. All you require is a calculator and a sheet of paper.You have to remain strictly within your budgetAn ideal solution, but, in reality, it is not always possible to stick strictly to a budget. At times, certain emergencies or even indulgences can cause you to go over the budget. There is no need to panic in such situations. There are no hard and fast rules when it comes to budgeting. It is just a tool to help you save your money and keep an eye on your spending.If you happen to go over your budget, you can always make some corrective measures in the coming days. If you happen to spend more than what you set aside for a specific category, say grocery, simply deduct the extra expenses from another category, say entertainment.Work around your budget in ways that best suit your requirements.Budgeting means no funSticking to a budget does not mean that you have to cut down on things that you enjoy the most. For instance, you may be a person who enjoys eating out occasionally or maybe going to a movie. Budgeting certainly does not mean you cannot do any of these things. It simply means whenever you spend money for a bit of entertainment, make sure that you do not go overboard and that you are always thinking about the future. No harm in having a little bit of fun.It is time-consumingAs long as your budget is not too complicated, budgeting is a rather simple process. All it involves is jotting down your expenses and later calculating your incurred expenditure. Simply save your bills and receipts and keep them safe. This can help ease the task of budgeting and also provide an accurate insight into how much you have spent over what.