Probably one of the most consistent messages you’ll hear about managing your personal finances is that you need to have a budget. But there are a few myths swirling around about budgets, and maybe one of them is preventing you from budgeting properly. It’s time to quash them so you can get your finances on track!
1. You Need Specific Tools
A budget doesn’t require expensive software, or even a computer. If you’re more comfortable, you can keep your budget on a pad of paper. All you need to do is figure out your monthly net income and your monthly expenses
If you do want to use a program, there are free ones out there. Just search “free budgeting tools” online and you’ll find plenty of options.
2. It Eats Up Your Time
Sure, the initial set up may take you some time. But honestly, you’re probably looking at 30 minutes tops. That’s not so bad.
After that, you may need to devote 10 minutes a week updating and evaluating your budget. Small time investment for something that can help you out so much!
3. It Will Prevent You from Having Fun
A budget should help you have more fun, because you’ll set aside an entertainment budget and (ideally) use it wisely. A budget isn’t meant to cut you off from fun things; it’s meant to help ensure you’re not spending more than you earn.
4. It’s a One-and-Done Deal
So many people will say they don’t have to worry about a budget because they set one up years ago. So many things change! Your income, expenses, dependents, etc. You need to reevaluate every year to make sure your budget is correct.
5. You Don’t Need One if You’re Saving
If you’re not living paycheck to paycheck, that’s great. But it doesn’t mean you don’t need a budget. You still want to keep track of where your money is going and how much you’re saving.
Keeping a budget will help you determine if you have cash to spare to invest in something like share certificates.
Get Started on Your Budget!
Click here to download our worksheet or use whatever method you’re most comfortable with.