Saving money is a hot topic. If you open a search engine and look for anything to do with ways to conserve money or something similar, you will find tons of hits on the subject. There are many methods of making your dollar stretch and hanging on until payday.
Interestingly, not many people like to discuss a very important facet of saving money – budgeting.
For most, this is just looking at their paycheck, subtracting what they plan to spend and moving on. The idea of setting a serious plan for handling finances can make a lot of people nervous and uncomfortable. In fact, there are lines of reasoning used to rationalize against it. Let’s look at six of those myths about budgets – and debunk them in the process.
1. “It will limit me.” A common myth is that working to be fiscally responsible will turn you into a self-depriving, penny pinching prude. Nothing could be farther from the truth. It will actually empower you. By helping you track your spending and helping you maintain accountability, it will help you take control of your finances.
2. “I have a good job, so it won’t matter.” The ugly truth of twenty-first century employment is that it is not guaranteed. Thanks to downsizing, outsourcing and other circumstances, jobs can vanish at a moment’s notice. It’s best to be prepared financially in case things get to that point. And even if your job is secure, life still has a way of hitting you with problems you may not be fiscally prepared to deal with.
3. “I’m not good with math.” Numbers are not fun for a lot of us, and even less so when it comes to our money. But thanks to technology, a lot of the head-scratching is taken out of financial planning. There is software available that only needs you to put in amounts and follow general instructions to help you manage your cash.
4. “I have no debts.” It can be great to not owe anybody anything, but that doesn’t mean that tracking your finances is unnecessary. Even if you do not have a negative balance for your account, not having a solid game plan for your funds can be just as bad as having an outstanding debt, if not worse.
5. “I don’t need a budget.” It’s possible that you may have a steady source of good money, and your account is looking very healthy. If so, you can still use this vital monetary resource. Its purpose is to make sure that your money is being used as efficiently as possible and to help you avoid negative spending habits.
Being responsible with your funds should not be seen as frightening, boring or unnecessary. If anything, a budget is a powerful tool that can help you achieve peace of mind and fine tune your money-handling habits. While there will still be times where you may have to adapt or use additional means to make it to your next check, handling your money properly will make your life all the easier.