I’ve always disliked the word ‘budget’. To me, it’s always had the connotation of depriving yourself, kind of like dieting. I prefer to think about using money intentionally, so that I can have a sense of basic financial security and the flexibility and freedom to make choices that allow me to have an enjoyable life. I prefer to use the term ‘spending plan’.

Outlining a spending plan you can live with is a challenge for many people. There are a number of myths around money and spending that can

be misleading and prevent people from having control over their financial situation. Here are three of them.

Myth 1: Having a Spending Plan Equals Deprivation

In my experience, this is the one that brings up the most negative emotions for people. But having a spending plan isn’t at all about depriving yourself. Plan is the operative word here.

Having a spending plan is a fabulous tool you can use to spend money intentionally, in a way that is congruent with your values, and save to reach your longer-term financial goals. You don’t necessarily need to cut everything except necessities—unless you’re in dire financial straits. When you focus on

your values and strip everything else out, you’re spending your hard-earned cash on the things that make you happy, and not spending on the things that don’t matter to you.

For example, if going out with friends is important to you, then plan to spend a certain amount of money every month on that. But be smart about it—set a limit for the month, and be creative in how you allocate it. Instead of dropping $30 on a bar tab every Friday and Saturday night, invite friends over for a potluck wine tasting, where everyone brings a different bottle of rosé.

This is often the most challenging part, because we live in a consumerist culture where the buy now, pay later lifestyle is accepted. Things like the latest technology and flashy cars aren’t really ‘needs’—they’re actually wants. If that’s what really, truly makes you happy, then go for it. Just make sure it’s what you really want, not what other people think you should have. You may find it’s easier to feel more fulfilled with less.

Myth 2: Spending Plans are for "Other People"

Some people don’t see the need to have a spending plan because they have a higher than average income. Others think they’re too poor to plan because

they don’t have enough money to manage in the first place. And some believe they don’t need to plan because they’re not in debt and are getting by.

All of these assumptions are incorrect.

If you’re going to be intentional with your money, you need to see where it goes.

Especially if your income is higher, having a spending plan is important. Lifestyle-creep is a real thing—a 2015 Nielsen study found 25% of American families making $150,000 or more a year live paycheck to paycheck. In fact, a spending plan might be even more necessary, otherwise, you might be tempted to spend all of your money, leading to having $0 in savings.

Everyone should have an emergency fund, even if it’s only $100, $500, $1,000, or more. Cars break down, medical emergencies happen, pets need veterinary attention. What would you do if you lost your job? Having a savings cushion can provide peace of mind. So even if you don’t have a specific savings goal, you should always keep adding what you can to your emergency fund.

If you don’t make a lot of money, you definitely need a spending plan. The less money you have, the more important it is to manage it wisely because your resources are limited. An added benefit is that it should take less time and effort to track.

Regardless of your financial situation, if you want to increase your wealth, you

need knowledge on your side. No one ever got rich by spending money, and you can’t know how to manage your money  to meet your goals without seeing where your money is going.

Myth #: Spending Plans Take Too Much Effort

A final misconception is that creating a spending plan means having a spreadsheet with 50 categories that takes hours every week to maintain. If that actually appeals to you, great! But

if that makes you want to run screaming from the room, there are other options that work just as well with way less maintenance.

For example, there’s the 50/30/20 budget, which a lot of people like and use. You put 50% of your monthly take-home income toward needs, like

rent, groceries, and transportation, 30% toward wants, and the other 20% goes into savings. Or flip the 30% and 20% if you have an immediate savings goal.

Remember that your spending plan can look like whatever you want it to look like. Everyone’s situation is different. Recommendations are just that—there are no set-in-stone rules that you need to follow when it comes to creating a spending plan. It just needs to work for you.