As you may have noticed, budgeting doesn’t come easily to most people, and what makes this worse is the numerous budgeting myths that keep circulating aiming to steer you on the wrong path. At Lendgreen, you will get the correct professional advice with regards to handling your loans and savings.

It is vital that you know the facts and the fictions matters relating to budgeting if you want to stay in control of your finances. Budgeting best ways you can manage your expenses against your income. Here are some myths that are meant to lead you astray concerning budgeting.

Myth 1: Budgets must be super detailed

This is false. Budgets do not necessarily need to be too detailed. There are many different methods you can use to categorize and group your budget. If what works for you is the 20 different categories, then that’s okay. But if you prefer using the anti-budget, the 80/20 budget or the 50/30/20 budget, then go on and use them. The point here is that you can make your budget to look whichever way you prefer it to look like so long as you are comfortable with it. Everyone’s’ financial situation and circumstances is different, and you should expect the same to show in the different budget categories.

In other words, you need to know that there are no set rules that you are required to follow whenever you are creating your budget.

Myth 2: You can never go over your budget

There are those moments that life gets in the way of everything, and you have to break your budget to get out of situations. In most cases, you find that most people end up giving up on budgets altogether because something went wrong through the process. This myth is misleading and false as budgets need to be flexible enough that you can work around. They are guidelines that you set to follow, and not hard-set rules. You need to ensure you are aware of all your spending patterns before you set out to create your budget.

Myth 3: Budgeting is time-consuming

Again, you do not need to have an overly complex budget to use. In any case, overly complicated budgets tend to be confusing and difficult to read out and understand easily, not unless you understand what you want with them.

There are even mobile applications that you can use to track your weekly and even monthly budgeting patterns. You do not always need to be on your phone to input data or some record of some milkshake you buy every lunchtime or that coffee you drink every day in the morning. You can automate all these in your mobile application. More time saved.

Myth 4: Budgets are for specific people

You may think that the rich never need to budget due to the large sums of money they have, or just how poor you may be even to have anything to budget for. How very misguided you are. Maybe you see there is no need for you to budget as you owe nobody any debt and so far, you’ve gotten by well. Well, here is one fact that will take you a long way; everyone, the poor, the rich, can all benefit from budgeting.

Myth 5: Budgeting equals deprivation

This may very well be the one myth that turns most people from budgeting. It could, however, not be further from the truth. At some point, you realize people started to associate budgeting with deprivation. That was a lie, a well-constructed lie for that matter. Budgets are simply meant to give you the proper guidelines on how you can be smart about your money, installment loans and how to use it effectively.