The Top 3 Myths About Financial Planning

There are a lot of resources out there about financial planning, and they often lead to misconceptions that can later turn into reasons we choose not to budget. But confronting these myths head-on and learning the truth about budgeting can help give you the right mindset you need to budget for success.

The top 3 myths about financial planning:

It’s too much work. Do you get nervous when you think about financial planning? Does the thought of creating a budget make your head hurt? It’s not uncommon to be intimidated by anything including the word ‘financial,’ but it just takes one step to get over this fear, and that’s simply getting started. Any new habit can seem like a lot of work but think of financial planning as just that: a habit. There’s a learning curve and we know all habits take time, but ultimately, the amount of work you put towards it is up to you. If you have all the resources you need and you allow someone else to do the planning for you (hint: that’s our favorite thing to do), then it won’t feel like so much work. Set goals and a timeline just like you would with any other healthy habit, and we promise, with a little bit of dedication, you’ll get to the point where budgeting actually seems easy. Here’s something to get you started:

Your budget is set in stone. You don’t know the future. Your budget today will look a lot different 5, 10, or 15 years down the road. And that’s because life happens! Don’t give up on financial planning simply because your budget no longer fits your lifestyle. Instead, allow your budget to be fluid and shift as your life shifts. Of course, this doesn’t give you a free pass to throw your budget out the window each time you come across something you want that doesn’t necessarily line up with your financial goals. Always look at your budget and financial planning in general as a starting point, and learn that adjusting it is never a bad thing.

Budgets tell you what you can’t do. You’ve probably found yourself in a situation where you’ve really wanted to spend money on something. You’ve gone to your budget to see if you can afford it, and you see that you can’t. Your budget told you no. But what if you looked at your budget as a list of what you can buy? Daily Spend Limit does just that. It doesn’t tell you what you can’t do, it tells you exactly how much you can spend. And if you happen to spend more than that amount, that means your Daily Spend Limit simply changes until you’ve made up for it. Don’t let your budget tell you no - let it tell you yes!

Check out your Daily Spend Limit in the Wela app - and learn to love financial planning! Bonus: if you ever have any questions about your budget or your financial goals, that’s what Benjamin is for. Go ahead, ask him a question in the app.