This is a guest post from Money On My Mind, who writes from the perspective of a fiscally obsessed, financially neurotic, thirty-something formal financial planner turned Mom living in Central Canada.

Back in the day, I was a credit counselor for a non-profit credit-counseling agency. One of the things I learned is that there is an epidemic of financial denial. Scores of us have no idea how much money we spend or what we spend it on. One symptom of financial denial is a lack of spending plan. When conversations with clients would evolve to budgeting, most people would become very uncomfortable and offer a list of misconceptions that stopped them from budgeting. Here are five off the top of my head.

Myth #1: A budget is just a list of income and expenses on a piece of paper.

Truth: A budget (I prefer spending plan or cash flow plan as budget has so many negative connotations) is a process. The key is to work your plan: recording and itemizing your expenses and goals and allocating your income toward them. A system has to be implemented to ensure the various categories of your spending plan are funded and revised as necessary.

Myth #2: Budgets are restrictive. It will be like going on a financial diet.

Truth: You control your spending plan it does not control you. Based on your values you decide where to spend your money and where not to spend your money. You make up the rules. No one can make you give up something that you feel enriches your life.

Myth #3: Budgets are only for people who have money left over each month. I don’t have enough to budget.

Truth: Everyone who has cash flow needs a spending plan. If you live paycheque to paycheque and have barely enough in- flow to cover your out-flow, then having a spending plan is especially important since one financial set-back will have a ripple effect through your entire life.

Myth #4: I can’t stick to a budget; every time I try I fail

Truth: You have not found a spending plan that works for you. Money is not a success only journey. Spending plans are as unique as the people who make them. Instead of giving up, change your plan.

Myth #5: I don’t know how to budget. No one ever taught me.

Truth: Very few people have been blessed with a good financial education. In an ideal world personal finance would be taught in school and your pay cheque would come with an owner’s manual. Most financial success stories are self-made. It’s about trial and error. As long as you learn from them your financial mistakes can be considered successes.