Whether you have a budget or not, you’ve probably heard a LOT about them! Which makes is hard to decipher the facts from the myths and thus impossible to create an effective one. So we’re here to break down 5 myths about budgets, that you may commonly hear!
1. Your Budget has to be very detailed
Often times, we think a budget has to include every category and every purchase as a separate line item with a fancy excel spreadsheet. FALSE. The truth is you need to find a budget that works for you! Everyone learns differently and everyone will budget a bit differently. This myth can make budgets feel overwhelming and unattainable. Which often discourages people from even making one. The point of a budget is to know where your money is going, so you can control your money. Instead, of your money controlling you.
2. Budgets Deprive You of Fun
Just like our last myth, a budget is all about finding ways to manage your money that works for you. Budgets do not mean you deprive yourself of extra activities. It’s essential to still have fun and treat yourself every once in awhile. So don’t feel bad about including a “Fun” category in your budget. By building that into your budget, you’re more likely to stick to your budget as a whole. As long as you’re in a financial spot to do so, you should be able to make fun purchases here and there to reward yourself for all your hard work. Making purchases through Zebit is a great way to buy that new item and not go over your “Fun” budget for the month. It’s also important to remember that categories like a “fun” budget are flexible and can increase or decrease in amount depending on how the previous weeks or month went.
3. Only Rich People Should Budget
What’s the point of budgeting if it feels like all your money goes to bills anyway? Well, budgeting is all about setting a plan to reach your financial goals. By setting a budget you’re well on your way to effectively spending your money in a way that moves you closer to your goals. You’d be surprised where your money is actually going besides just your bills. Still not convinced you need a budget? Think back to a time you were checking your account balance and caught you self thinking, “what happened to all my money?!” It happens to the best of us, no matter your financial status. This reaction is often triggered when we forget how quickly our small purchases here and there can add up. So by becoming more consciously aware of all the places your money could be going, your able to manage your finances with ease and keep more money in your account.
4. I Already Have A Budget
If you already have a budget, great! But have you touched it since you created it? Be honest. The key to an effective budget, is to MAINTAIN it! Without consistency, you’re budget will not serve it’s purpose and you’ll eventually find yourself having to remake an entirely new one. This is not to say your budget won’t change from time to time, but you’ll get the most bang for your buck if your actively engaged and making the necessary accommodations within your budget to achieve your established goals.
Budgets can be tricky, but they don’t have to be. The important thing to remember, when creating your budget, is to keep it flexible and that it needs to be something you can actually follow. We all love the thought of putting all our money towards just the essentials! But let’s be honest with ourselves. Sometimes we catch ourselves at a local coffee shop or picking up dinner through the drive-thru when we need a quick fix and that’s OK.
Did we miss a budget myth that you’ve busted? Let us know about it in the comment section!