Budgeting Myths: True or False


Budgeting Myths: True or False

When it comes to managing your finances, you may have heard many budgeting “facts” over the years. Or, you may have been thinking these yourself. While some statements may hold some merit, many others not only lack credibility, but may be discouraging you from taking up healthier budgeting habits. Below we’ve rounded up a few budgeting myths and our verdict on how much truth they hold.  

Myth #1: You Can’t Have Fun on a Budget

Answer: False! While budgeting may mean you’re paying closer attention to your spending habits and purchases, you can still set aside an allowance specifically for “fun” expenses, such as activities, eating out, etc. You can implement your own budget restrictions, making sure to reflect healthy and realistic savings goals. Along with your other everyday essential categories, you can add a separate budget for non-essentials. Once these expenses are accounted for in your monthly spending, you’ll be able to partake in the activities you choose, as long as you stay mindful of the budget you’ve allocated for yourself.

Myth #2: Your Budget Will Stay Consistent Month to Month

Answer: Not always! While some months’ budgets may look similar, your life events change on a monthly, or even weekly, basis! Some months may be packed full of events, vacations, or gift shopping. Others may be slower and require smaller, more basic budgets. Making sure your budgets are flexible, and checking in on them monthly, will help ensure you are accurately accounting for what’s coming up throughout the month and year.

Myth #3: You Can’t Prepare for the Unpredictable

Answer: Untrue! While you won’t be able to predict every sudden change in the future, that doesn’t mean you can’t plan ahead for events out of your control. You can plan for accidents, loss of income, etc. by setting aside a modest budget every month to add to an emergency fund. This way, when unexpected expenses come up, you’ll have a stash set aside to help you tackle whatever is thrown your way.

Myth #4: Budgeting Takes Too Much Time

Answer: It’s doesn’t have to! Budgeting can be as complicated or as simple as you’d like. You don’t need a massive, complex spreadsheet in order to have a healthy budget. Simply keeping a log of your expenses can be an efficient and effective way for you to stay on track with your goals. There are also many online budgeting templates that are free and customizable, so you don’t have to create a spreadsheet from scratch. Updating your budget once a week may be all you need to keep up with your plan.

Regardless of your financial situation, spending habits, or saving goals, budgeting is beneficial for everyone who wants to have more control over their finances. And, if you’re looking to build your savings effortlessly, Valley Credit Union’s Rewards Savings offers high dividends with no monthly services fees and no minimum balance requirements.

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