5 Budgeting Myths You Need to Stop believing

The idea of living on a budget can sound boring, especially if you are not a “numbers person”. However, the truth is you need a budget to pay off your debt, boost your savings and enjoy financial freedom in the long run.

To succeed at budgeting, you must be able to declutter your mind from the lies you have held onto as it relates to creating a money plan. A budget can be seen as a map needed to arrive at that destination of financial independence. We have debunked some top budgeting myths, so you can start and continue to win with money.

5 Budgeting Myths You Might Be Falling For

I can do a budget in my head

If you don’t document it, it’s not really a budget, rather a mere vague idea of what’s being spent.

Writing it down, holds you accountable to yourself, helps you visualize the amount you must work with, provides you a clear picture of what you are spending on as well as areas to make amends.

I hate math. There is no way I can budget

If you can add and subtract, you can make a budget. Your budget is simply your income minus your expense, which can be less/greater than or equal to zero.

If the outcome of your income is less than zero then you need to find a way of making more money or adjust your spending plan until your number is zero (that is, you have spent all your income) or higher (meaning you have some money left)

Budget is a hassle. I don’t have time

Creating a budget for the first time can be time-consuming, as with any new habit, skill, or lifestyle. You might spend an hour or two sorting things out. This will last for only a few months.

The variable expenses can be the tricky part, keeping track of the variable expense can enable you to come up with a reasonable estimate of what the future cost can be. In the long run you will discover you are just plugging in numbers and the math is doing its thing.

I have a good job, so I don’t need a budget

There is no 9-5 job that is completely secured. COVID-19 proved this in the last couple of months.

Experts recommend that you have at least 6 months emergency savings to cover up for job loss. A budget can help you save up as soon as possible. It does not matter your level of income; everyone can benefit from creating a functional budget.

I have too much debt, so what’s the use?

A budget can help you in setting aside part of your income to tackle that debt.

To clear off that mountain of debt, there’s got to be a feasible plan you are ready to stick with through thick and thin to become debt free. That plan can be factored into your budget.

Your budget must be flexible to accommodate changes for which you have no control over. At the end of the day, you are your own CFO of “YOU Incorporation” and you have the power to move your money and make it work for you.

Do you want to stay in control of your spending and live within your means? If yes, then YOU NEED A BUDGET.

Don’t forget to sign up for our weekly newsletter. Sign up here

pfmAcademy is committed to helping young professionals become intentional about their finance through practical personal financial management tips.

Before I joined PFM Academy, I was just a classroom teacher and a lover of make-up. Like, if I were taken to a drugstore on a blank cheque, I will go for all the makeup items in that store. Then, one evening I had a 1-1 session with Tolu from PFM (we use to be church members during our childhood) and she asked how I was doing in my profession. I complained on how “Teachers take home, were unable to take them home here in Nigeria” she asked of my passion and encouraged that I could use that to start a ‘side blessing’ that’s what she tagged it. During the lock down I enrolled for a makeup course where I came out second best and boom! I began my side blessing after that. I makeup people for good money and yes, I still buy makeup products but this time, I buy for people and then make my profit. Thank you, Sis.