The monthly budget is one of the ideal solutions for managing income and spending, through which a person becomes more responsible towards managing his monthly salary, which enables him to control his expenses and fulfill his obligations and to set savings plans in addition to avoiding the risks of defaulting and falling into the debt spiral in order to reach a stable financial future.
But some find it difficult to set and stick to a monthly budget due to the spread of some misconceptions about the budget.
5 false beliefs about the monthly budget
Difficulty sticking to the budget
Some people find it difficult to control their expenses and stick to what is specified in the monthly budget, and the reason for this is their inability to set a flexible monthly budget that enables them to deal with different aspects of spending.
The budget must be somewhat flexible so that it can be rebalanced by adjusting some aspects if one aspect of the spending exceeds its limit. For example, if it turns out that the amount allocated to shopping expenses will not suffice to cover all the needs for this month, you can increase this amount slightly and reduce the amount allocated for entertainment and restaurants.
Preparing and updating a budget takes a lot of time
Some believed that budgeting and recording what was spent daily required a lot of time and that the benefits of planning and budgeting were less valuable than the time needed to prepare and follow them.
However, the budget will not need more than half an hour per day, and if this is not possible, it can be updated on a weekly basis. But be sure to keep all invoices and SMS text messages for payments and purchases. It is also possible to use some applications devoted to budgeting and management, which require only data entry.
Expense control does not need a budget
It is also a misconception that a person is convinced that he is able to control monthly expenses without having to set a budget. Thus it will be easy for him to justify the purchase of many unnecessary things, especially in times of discounts and offers because there is no clear and specific path for spending.
Therefore, commitment to the budget is very necessary, as it is a compass that guides you to spend smart, and you should never rely on random estimates of spending.
The budget is tied to the existence of debt
Usually, the concept of a budget is linked to the debt of many people, but they have to take the matter from a different perspective to correct the concept of a budget. It is not linked to the existence of a religion or not, but is necessary in all circumstances and times.
The goal of the budget is to get rid of debt by controlling spending, and then saving and saving some money to use in achieving certain financial goals such as the purchase of assets, and so on.
[ 6 things that help you pay off debts ]
Budget means austerity
You might think that the word budget is a synonym for deprivation, but the budget is found to achieve financial goals. It does not aim at all to deprive a person of enjoying life, but rather is to set a guiding plan for how to manage expenditures in a smart way by changing consumer habits and setting spending priorities to finally reach financial stability and then achieve your goals.
If you plan to travel or spend a vacation, you can add costs to the budget. Having no budget will only teach you extravagance and extravagance, and in the end, you may suffer from the problem of defaulting and debt.
The budget is the financial compass that guides you for smart spending and future planning to achieve your goals. You should not rely on random estimates of spending, in order for the salary to withstand you until the end of the month.