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Ghost Busting Budget Myths

Boo 👻

More Myth Busting – this time about budgeting. 

Here are some of the top myths I hear floating around… and the truth behind them:


Myth Busting: Budget Edition

Myth:A budget is too restrictive.

Fact: A budget is telling your money where to go, rather than you wondering where it went!

A budget/system/plan gives you a sense of control when so many things are not in your control. When starting a budget, my two simple tips are:

1) don’t overcomplicate it
2) be realistic with your numbers

Myth: I don’t need an emergency fund. I have credit cards.

Fact: A credit card is borrowed money. 

Saving money for an emergency is an exercise in forethought: You have extra income today, so you set it aside for a time when you might not have any income at all. By contrast, when you use credit cards as your emergency fund, the money you spend becomes credit card debt that you’ll eventually have to repay. Your “present self” is borrowing money from your “future self.”

Myth: Carrying a balance on your credit card will actually help improve your credit score.

Fact: HELL NO!

The world is full of myths, and this one is costing you money. You should never have to hold a balance on your credit card to improve your credit score. In fact, the Consumer Financial Protection Bureau (CFPB) says that paying off your credit cards in full each month is actually the best way to improve your credit score and maintain excellent credit for the long haul.

Myth: Buying is always better than renting.

Fact: Not always, my friend!

Not always, my friend! It depends on several factors, including where you live. Housing and rental prices change over time and vary by geography, so there isn’t a bright-line rule. To make a fair comparison, you must look at the total costs of ownership. This includes taxes, mortgage costs, maintenance, and mortgage insurance.

If budgeting gives you the heebie jeebies it’s probably a sign that you need a little guidance around it. That’s what Im here for!
Reach out to me. I promise I don’t bite!


Coach MicKallyn

Meet MicKallyn

mickallyn ellis in her office


Hi, I’m Mickallyn, a Mortgage Lender/Banker turned Financial Coach.  When student loans put me in debt, I knew I didn’t want to live the rest of my life paying them off, so I figured out how to pay them all off in just a year. Now I have zero debt, 3 homes, 4 college degrees and am raising two little boys. I’ve traveled to over 22 countries and live a debt free life. I’m committed to helping others do the same through 1 on 1 coaching and personalized plans that actually work.

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