The feared spreadsheet. The Excel document sitting in drafts. A technique that could save you thousands of dollars each year, yet you shy away from creating one. The money-planning asset helps millions move toward a debt-free life, although so many people underappreciate it. What are we talking about? The budget. Today, we’re debunking budgeting myths, keeping your bank account in the negatives and your credit score in the reds.

1. I Don’t Need to Budget 

Everyone needs to budget. Even people who make millions per year benefit from the act of budgeting. Whether you’re sending your third child to college or deciding how much money to set aside each week for groceries, budgets allow you to see how much money comes in and goes out. Once you’ve accounted for all of your finances, you are left with money you can invest, save, or use as fun money. Figuring out the numbers decreases stress and leads to financial responsibility. 

2. I Budget in My Head

A lot of us fall for the idea of budgeting in our heads. We have a little too much fun on a weekend trip, telling ourselves, “Well, I budgeted in my head. I’ll fix it later.” The issue with this myth leaves us scrambling to pay finances later in the month and confused about where our extra cash ended up. Plus, budgeting in your head is not a real budget. A budget is a physical or digital copy of a spreadsheet that details the influx and outflow of money. Budgeting in our heads allows for human error associated with memory. Physical budgets display everything without that slip-up. 

3. Budgeting is Boring

It doesn’t have to be. But, like anything monetary-related, there are certain aspects of the task that are tedious as opposed to exciting times for consumers. If you want to work around the idea that budgeting is boring, set your budget up with rewards. For example, if you make your budget each week, you’ll take yourself out to a nice dinner at the end of the month. This way, you interpolate something to look forward to into your budget. Don’t worry, you’ll budget the nice meal, too. 

4. Budgets Take Away Fun

Budgets exist to help people live their lives freely, without fear of overspending. The idea of a budget permits budgeters to go about their lives, participating in their favorite activities, without fear of the repercussions associated with crippling debt. Figure out a standard, fixed budget for each month, including regular payments, bills, and food expenses. Next, factor in miscellaneous activities that change every week/month. Inserting the shifting numbers provides budgeters with the freedom to continue doing those activities that breathe enthusiasm into their lives.  

5. I Can’t Go to Dinner With a Budget

Yes, you can. Just put it in the budget. Way before booking a reservation at the newest hibachi spot, calculate how much money remains in your reserve after you’ve paid your monthly expenses. $100 remains? Great! Head over to hibachi. You have $50 to your name? Not bad, though you might want to focus on a cheaper dining out option and save the leftover cash for later. The best way to plan for eating out at restaurants is by browsing the menu to prepare for the financial impact prior to the meal. Most places post their menu and prices online. 

6. I Make Too Much Money for a Budget

Everyone needs to budget. Circling back to point 1, those who make minimum wage and those who make millions benefit from budgeting. Understanding how much money you make, how much money you spend, and how much money you have left over gives you greater financial security. Individuals bringing in lump sums of money use their budgets to articulate where they spend money and where they can decrease or increase how much they spend on which item. Furthermore, budgeting maintains wealth by illustrating financial patterns regardless of socioeconomic status. 

7. Budgets Are Too Stressful 

Would you rather spend a few hours each month sifting through income and expenditures or filling out numerous loan paperwork because you miscalculated how much money you’d need in your mental budget? Budgeting has its stressors, sure. However, seeing the amount of cash flow earned and spent each month eases the worry of not knowing where your money goes. 

8. I’m Not Good at Math, so I Can’t Budget

Repelled by the thought of math? Good news! You don't need an education in AP calculus to become an efficient budgeter! All you need is a sprinkle of ambition along with a basic understanding of arithmetic. A calculator helps people with an extreme aversion to math, as well. The simplest budgets require the budgeter to track how much they earn and how much they spend on staple payments each month. 

9. Budgeting Wastes Time

Instead of spending an hour each night doomscrolling for the funniest TikTok videos, direct your attention to budgeting. First-time budgeters, this is for you. Set aside an hour each night for a week to sit down and direct all attention toward crafting a budget. See how many nights it takes you to complete the task, then you can freely doomscroll, sans that voice in the back of your head preaching about debt and a lack of income preventing you from getting off your phone.  

10. I’ll Budget Later

Will you? We oftentimes find ourselves putting off things we don’t want to do because we think they evoke fear or ramp up stress levels. For lack of a better cliche, rip that band-aid right off and get to budgeting. For lack of another better cliche, there’s no better time than the present to create a budget. 

11. I’m Not in Debt, Why Budget? 

Are you planning to buy a new car anytime soon? What about a house? How about that once-in-a-lifetime trip to Bali you’ve envisioned since childhood? How will you plan for those expenses without knowing how much money you need to put toward them? Individuals who are not in debt remain out of debt by working one step ahead, budgeting to stay out of debt while planning for the future.