5 Budgeting Myths
Planning finances might be smart but it is not always easy. While it is essential in businesses and organisations, it is even more important for individuals like you. In the middle of good financial planning is the Budget. Making one is easy, sticking to it? Now that’s the hard part. We at m-GURUSH advocate for financial wellness and informed money decisions and hence why we want to debunk the most common budgeting myths.
1. Budgeting = Never having fun again
Budgeting is not about giving up on things you love doing like going out with friends or the occasional long phone calls with family and friends. Budgeting is about prioritising your spending based on what is important to you. Having an unrealistically strict budget might cause you to not stick to it.
Do you value interacting with friends in a social setting like a hotel? Well, add that to your budget. Do you enjoy having a roof over your head? ( Don’t we all) Then add that to your budget. Budget your income first for your needs like rent, food, airtime ( that you can buy through the m-GURUSH app) etc then for your wants like fun activities.
2.Budgeting is pointless, there’s always surprise expenses
Sure sometimes expenses come out of the blue and you feel that budgeting was a waste of your time. But hear us out, was that cost unexpected or might you have forgotten to plan for it?
Your friend’s birthday is next month and your insurance cover is due in 2 months, plan for this in advance to avoid them being “surprises”.
The other side of the coin might be actual surprises, here is where the miscellaneous section of your budget comes in place or even better, an emergency fund. Always have a buffer. Stay woke!
3.I make enough money, I don’t need a budget
Ehm, no. Even a billionaire needs a budget to maintain and grow his wealth. Just because you are making enough money doesn’t mean you can spend it willy nilly. You need to ensure that you are allocating your money in the best way possible to grow.
In case you get that promotion you’ve been working so hard for, revisit your budget because chances are you will fall into the trap of lifestyle inflation and not make necessary steps towards your growth and financial freedom.
4.Budgeting is hard
Budgeting might feel hard if you haven’t gotten a hang of it but guess what is worse? Getting into debt you could have avoided or not having money for necessities because you didn’t plan your finances properly.
Budgeting is simple: Your income- expenses & Savings=0, see? Basic addition and subtraction.
Start small, a book and pen will do then once you’ve got the whole routine down you can try apps and spreadsheets. Whatever floats your boat.
5. I don’t have enough money to budget
When you don’t have a lot of money, budgeting becomes even more crucial. This is because you need to allocate your money in the most resourceful way possible.
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