Ah, Smart Daily Money, you have me all figured out. I stumbled on their list of the lies we tell ourselves about why we don’t need to budget and save, and unfortunately have been guilty of every single one. How many have you told youself, as you look at yourself in the mirror and realise you’ve spent every cent you’ve earnt that week?
Lie #1: I don’t need to budget
Even really wealthy people need to budget, so I suspect that on an ordinary wage, none of us are exempt either. Maybe you are still managing to save without a budget, but are you saving as much as you could or need to be? Or are you just barely scraping by, even though you earn a lot of money? Sometimes this excuse is used, flying in the face of the credit card debt and mortgage we’ve all somehow just learned to live with. And then there’s retirement to think of.
Point proven- we all need budgets. Lies, all lies, if we say we don’t.
Lie #2: My job is set in stone
How about have a quick word with a lot of the people living in Detroit and get back to me on that one. No job is safe or secure enough to be counted upon forever. Jobs change, industries change, economies change. No one, except for maybe Warren Buffett and the Google guys, could safely ever claim to have an entirely secure form of employment.
Don’t count on your job being there forever. Having an emergency fund of 3 months income should things go pear-shaped will protect you, and allow you to search for the perfect job as opposed to having to take the first thing that comes along.
Lie #3: Nothing will happen to me
It’s a wonderful way to go through life, feeling that invincible. It really is the best way to think, but you cannot prepare in that way, or one day you will be sunk. Think for the best, and prepare for the worst. Emergencies do happen, and a safety net will be needed at some point of your life. Having no financial fat to absorb an unexpected cost could lead to some pretty nasty times.
Lie #4: I’m free of debt, I don’t need to save
Getting debt free is a sensational effort and something you should be very proud of. Don’t squander the wonderful freedom you have, and throw yourself back into debt when the bad times come calling. Continuing to save and budget is important, even when your debts have been paid off. All that hard work shouldn’t have been in vain.
Lie #5: I don’t want to live like I’m poor
I can understand this reason, I really can. You work hard for your money and you want to enjoy it. However, budgeting and saving doesn’t equate to a life f misery. It just allows you to spend your money on the things you really want, and protects you from living like you are poor once you’ve retired. Budgeting allows you to control your finances so that you can spend what you want to spend, and save money on the unnecessary purchases we often seem to make.