Mythbusters: Busting the Top Five Budget Myths That Keep You Broke (Part One)

I always get nervous talking about budgeting. I bet it’s similar to how pastors feel when talking about tithing. It’s a powerful thing that can set people free, yet people have this natural inclination against it. So, between today’s post and Friday’s post, we’re going to address the top five myths to budgeting. Another title could be, “The Top Five Excuses People Use To Avoid Budgeting.” Whatever you want to call it, not having a budget is one of the top reasons people overspend and hence end up broke. Let’s dive in.

Myth #1: I Don’t Need A Budget

Truth: You’re absolutely right. You don’t need a budget.

At least, not like you need food, water, and a host of other things. If you’re content with living with the stress of not really knowing where your money goes, not really feeling prepared for the future, and arguing with your spouse about money, then no, you don’t need a budget. If you’re reading this, it’s obvious that you’re not content with those things, in fact, you’re sick of the stress, and you’re tired of fighting over the finances.

Bottom Line: If you’re fine with the status quo (broke, in debt, & stressed), then no, you do not need a budget. However, if you want to achieve financial freedom, then you absolutely need a budget.

Myth #2: Budgeting is Hard

Truth: The first 2-3 months are hard. After that it’s basically auto-pilot.

Creating a budget for the first time can be a little intimidating and may take a couple of hours. Like all things, there is a learning curve. But after you’ve created it, it’s just a matter of revising and adjusting your budget each month to make sure you’re on track.

Because we get paid twice a month, Beth & I spend about 15 minutes every two weeks looking at our budget. I can truly say it’s easy for us, and it didn’t take long at all for it to be a very normal and natural part of our marriage. Most of the time it’s a fun process that brings a sense of security each month as we know we’re getting all of our financial bases covered.

You don’t have to be a math whiz or some Excel expert either.  We’re going to go through the process of creating a budget in the next couple of weeks, but for now, just know that all you need to create a good budget is a calculator, and copies of any pertinent financial statements/obligations.

Myth #3: A Budget Won’t Work For Me

Truth: A budget will benefit any income level or financial situation you may find yourself in.

I fell into this trap not long after college while working at a high school in Texas. I was making the equivalent of a teacher’s aide salary (not much) and it often seemed like there was more month than money. I remember thinking, “Why make a budget? All it’s going to tell me is that I don’t have enough money.”

What I didn’t realize at the time was the power of a budget. Sure, it may have revealed that I didn’t have a whole lot of money…but it also would have shown me how much I was over-spending on food and other areas where I could be saving money. It also would have done away with the fear of never really knowing where I was financially, or if I was going to get slapped with overdraft fees at the end of the month. But because I was intimidated by a budget, and didn’t want to face the facts, I hurt myself financially.

Comments: We respond to every comment! How have you bought into these first three budgeting myths?

Committed to your success,

-Wesley

 

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  1. Mythbusters: Busting the Top Five Budget Myths That Keep You Broke (Part Two) | Debt To Life -

    […] Happy Friday everyone! Today, we’re wrapping up our Mythbuster series, and we’re débuting our new weekly installment called “Date Night.” Now for the final two budget myths (if you missed Part One, click here)! […]

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