This method debunks 3 common budgeting myths:
High vs. Low Income
“I don’t make enough money, that’s my problem.”
Money doesn’t solve problems, people do. Having more income does help alleviate worry, but it does not automatically change behavior. Our family is in a better spot financially than we were a few years ago. The REB helped us develop disciplines with our money when we were making less of it. As our income increased, they stuck. Learn to manage $100 before managing $1,000.
Fixed vs. Variable Income
“My income changes month-to-month, so I can't budget.”
This is a sign of old-budget thinking. With the REB, you start where you are and with what you make. In the past, we were on a variable income for about two years. We adjusted our spending caps for each category (food, transportation, etc.), made improvements that stuck and then re-adjusted when our income changed. If you always maintain this excuse, you will not progress.
Spender vs. Saver
“My spouse and I are not financially compatible, so we can't budget.”
The REB method will help the two of you come into alignment because it doesn’t force you to save or spend based on a budget or income but to adjust based on real activity. If you choose to let a label (saver, spender, etc.) define your habits, you will never improve your finances.
There are two ways in which a Christian may view his money - "How much of my money shall I use for God?" or "How much of God's money shall I use for myself?"
W. GRAHAM SCROGGIE