Budgeting is underestimated! There are people who believe that a rainy day will never come, so they spend money recklessly. It’s no wonder that at the end of the month they don’t have the slightest idea as to why they needed that dress, that coffee machine or those figures made from the Chinese porcelain.
Of course, there are people who excel at managing their money and keep their budget under control. Still, spenders prevail. In addition to the habit of overspending, they are so sure they are just not able to save. That’s a mistake. Below are the most popular myths that spendthrifts live by and they don’t want to change a thing.
A Rainy Day Will Never Come
Life is life. Accidents, diseases, tragedies do happen. Setting up a bank account and depositing your pay packets there is a clever thought. Even though unexpected or unpleasant events may not pop up some day, your friend or relative might need your help.
Hope for the best, prepare for the worst, and you will never find yourself or your close people dead broke.
I Don’t Need to Save Up
Again, that’s not true.
This myth is popular among people with large income. It may be a wealthy heir, a workaholic who has no time to manage his finances or just a rich person reckless enough to go with the flow.
Budgeting can help you to keep your money in order and multiply it over time. For example, putting your funds in a bank can generate extra money over several years due to the interest rate.
I Won’t Ever Be Left Jobless
Your secure, well-paid and prestigious job is not necessarily forever. Things can change overnight. Especially if you work at a large corporation. History shows precedents when thousands of employees are fired in one day by one company.
To avoid the risk of suddenly turning poor and jobless, make sure you are backed up with at least a month’s worth of expenses.
I’m Fine With What I Have
Having no goal is boring. When you’re motivated to put money aside, your bank account grows exponentially. The bigger your dream is, the harder it will be to accumulate the needed sum. But imagine how delighted you will be when you eventually buy a house or a car with the money you’ve saved yourself.
I Don’t Want to Stay Within the Limits
And you don’t have to.