Capital.com NewsBudgeting 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
Not true.
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
Wrong.
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.
Budgeting has little to do with depriving yourself. Saving up doesn’t imply you must tighten your belt, and then wait for next salary. You are doing a great job if you save even 10% each month. This won’t dramatically affect your lifestyle. You still can go out, buy clothes and travel.
I’m Bad at Maths
Such a lame excuse.
There are dozens of special applications (both mobile and desktop) designed to control your budget for you. A large proportion of them is free and accessible. All you have to do is download and manage your expenses there. All the calculations are made instantly.
Try it. By the end of the month, you will get a clear picture of where most of your income goes.
Government Won’t Leave Me If I Lose My Job
That’s a big question.
Unemployment payments are not always guaranteed. If you leave your job by your own choice, there are hardly any benefits. If you intentionally caused your dismissal, there will be no benefits either.
Benefits are provided in case you are downsized. Other reasons don’t count.
I Will Surely Get Promoted
Don’t count on a sudden promotion unless you have tangible reasons. Don’t wait for a big raise as well. Even if your manager promised to increase your salary, that doesn’t imply you are sure to get more on your pay packet.
The same goes for bonuses. It depends on many factors, from your performance to the economic situation. To rest assured you have enough money in case of a rainy day: daydream less and save more.
I Simply Can’t Save
That’s tough, but not fatal.
That’s a matter of discipline. You need to protect yourself from your spending habits. First of all, open two accounts. One of them will serve for savings. Transfer there a part of your salary as soon as you get paid. The procedure is done automatically. Thus, each month a particular sum from your pay packet goes into your savings account. It’s as simple as that.
What’s It All About?
Budgeting makes a difference. Opening a bank account and putting your money there is very reasonable. Spending less than you earn is a nice habit to have too. Doing so you will feel safe about your financial situation, and you will face bad times (if they ever come) well-prepared.