There are some untrue things about budgeting which so many people have come to believe are true.
A lot of people have no budget because they feel it is not easy to create a budget and it is worse when they believe the untrue things about budgeting which might affect their finance negatively.
You should know the difference between the truth and false things about budgeting, so you can gain control of your money and finances.
Here are 5 untrue things about budgeting you must never ever believe.
1. You must have an extremely detailed budget
This is one of the biggest false claims about budgeting. Your budget shouldn’t be extremely detailed. You can create and stick to a simple budget.
If having an extremely detailed budget works for, it is not a bad idea but if you can’t deal with it, you can stick to a simple budget.
You can create a simple budget by using the 50/30/20 approach to budgeting, 50 percent of your income should go into your essential needs, while 30 percent should go into your wants and lifestyle, the 20 percent should go into your savings.
This is a basic budgeting approach you can stick to.
2. You have to deprive yourself if you have a budget
I always wonder why people believe that they have to deprive themselves of the good life because they have to reach their financial goals.
It is a so false and very silly to be part of this school of thought.
You don’t have to deprive yourself because you want to budget. Budgeting is a financial tool meant to help you achieve your financial goals.
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It is just a way of being financially smart and controlling your finance.
You really don’t need to cut some things from your budget. The only time you can cut from your budget is when you have a serious financial problem.
This is the reason why you should know the difference between your needs and wants which you should never mix up.
3. Creating a budget is time-consuming
You really don’t have to stress yourself because you want to create a budget. Don’t make budgeting look so complicated.
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It is a false belief to think creating a budget is time-consuming. This is the reason why you need to keep your budget basic and simple.
4. You can’t spend more than your budget
Some people don’t have a budget because they feel it restricts them from spending, which means they can’t spend above their budget.
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Though it is advisable to spend below your budget, things happen sometimes which can make you over-spend. This shouldn’t affect your budget and also stop you from having a budget.
5. Budgets are for some specific people
This is another silly and false belief about budgeting.
While some believe the rich don’t have to budget because they have so much money, some others believe they shouldn’t budget because they don’t make enough money. Then there are others who believe they don’t need a budget because they don’t have debts to pay.
This is so wrong. No matter who you are and how much you make, everyone needs to have a budget, to control and curb your excessive spending, also to help you save more.