5 Myths of Budgeting
E
veryone can and should budget their money. The budget is the starting point of all things financial. You can’t make informed decisions about your money until you are know (and ideally are controlling) where you spend your money. Here are 5 Budgeting Myths
1. You don’t have time.
You spend so much time earning your money. It only makes sense to take a few extra minutes a day, literally, to make sure your money is behaving. The time it takes to control it is minuscule compared to the time you spend earning it.
2. You’ll have to do without.
The only thing a budget will make you live without is stress. Controlling your money only means that more money is working to make you happy. No more wondering where you money went. I wrote more about this in my article Enjoy Your Money. Your budget doesn’t limit your spending, your income does.
3. You can’t budget if you have a variable income.
Having a written budget is even more important if you have a variable income. A variable income can seem like a tough battle to face when sitting down to budget but there are ways to conquer it. I gave some strategies for making a budget with an irregular income here.
4. Budgets are only for poor people.
You can’t out earn your spending. Period. No matter how much money you make you can and will find a place to spend it. It doesn’t matter how much or how little you make you need to be sure that you are getting the most out of your money, and a budget does just that.
5. It won’t work.
A budget is simply a way to make sure that your spending is in line with your values. If you are honest about your spending and keep track of your spending the budget will be there to help you make more informed decisions. It’s not magic. It’s just a tool to help you make the best decisions for you. You are already spending your money, a budget just helps you make sure you are putting it to good use.
Do you have a budget? If not, what’s your excuse?
Ashley
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Comments
> 4. Budgets are only for poor people.
Its definitely not for just poor people. Listen to the Dave Ramsey radio show for a week and you will find many of the callers (single or couples) make “enough” money. “Enough” is a personal opinion, but I would say if you make $70k or more person, you should have the capacity to be debt free except for the mortgage.
> 3. You can’t budget if you have a variable income.
It is harder, but it is easy enough to do if you have a 3 to 6 months cushion. If you are self-employed and can not build this cushion, maybe you need to find another job.
I’ve used everyone of these excuses….and they all let me to the same destination – in debt. Do the work, live within our means == much less stress.
My name is Travis, my wife’s name is Vonnie, and we’re “budgeters.” 
If you only have one dollar, you should have a budget.
Budgeting is easy once you learn how to do it. I teach in my course that it will be difficult for about the first 3-4 months until you get the hang of it, but after that it gets much easier. Just like any habit, it takes time and effort to develop it. We’ve been doing it for several years and it’s just automatic now.
I also just put up a post similar to this one entitled ‘You Know What You Should Be Doing, So Why Aren’t You Doing It” that deals with some of the excuses people use for not getting out of debt.
I hear #5 all the time. Many people say budgets don’t work for them; to which I ask, “Have you actually tried?” their answer, pause, uh no.
Often they don’t try to budget or they set expectations they just can meet. My advice: keep it realistic and simple!
One of the things that I’ve found about the budgeting that I’ve done is that it’s a LOT easier as time goes by. I have the general figures going through my head at any given point in time as to where I’m standing financially. I don’t watch every penny as much anymore, because with habit has become some automation. You’re right about the time myth – budgeting takes only a little time when compared to the direction that it can put you on.