--- title: The Worst Budgeting Advice We've Ever Heard description: Read this blog by Megan Plis Knapp to hear the top 5 worst pieces of budgeting advice we've ever heard. image: https://blog.plansmith.com/hubfs/budgetblog.jpg --- [CALL TOLL-FREE 1-800-323-3281](https://www.plansmith.reachproductions.net/project/call-toll-free-1-800-323-3281/) [![Plansmith](https://blog.plansmith.com/hs-fs/hubfs/Plansmith-Logo.png?width=764&height=135&name=Plansmith-Logo.png "Plansmith")](https://www4.plansmith.com) - Solutions - [Budgeting](https://www4.plansmith.com/budgeting/) - [ALM](https://www4.plansmith.com/alm) - [ALM Advisory Services](https://www4.plansmith.com/alm/advisory-services/) - [CECL](https://www4.plansmith.com/cecl/) - [Strategy](https://www4.plansmith.com/strategy/) - [Market Intelligence](https://www4.plansmith.com/market-intelligence/) - Products - [StrategyGPS](https://www4.plansmith.com/strategygps/) - [Compass](https://www4.plansmith.com/compass/) - [BankersGPS](https://www4.plansmith.com/bankersgps/) - Resources - [Blog](https://blog.plansmith.com/) - [Videos](https://plansmith.wistia.com/projects/7qemazkqii) - [Compass Tutorials](https://info.plansmith.com/compass-tutorials) - [Lunch N’ Learn](https://info.plansmith.com/lunch-n-learns) - [Webinars](https://www4.plansmith.com/webinars/) - [About](https://www4.plansmith.com/about/) - [Schedule A Discovery Call](https://www4.plansmith.com/contact-us/) - [CALL TOLL-FREE 1-800-323-3281](tel:8003233281) # Plansmith Blog # The Worst Budgeting Advice We've Ever Heard Posted by [Megan Plis](https://blog.plansmith.com/author/megan-plis) on 8/1/19 8:08 AM Find me on: [LinkedIn](https://www.linkedin.com/in/meganplis/) - [Tweet](https://twitter.com/share) For almost 50 years, Plansmith has helped financial institutions become better organizations through improved planning. In that time, we've heard a lot of industry chatter - much of it a load of, dare we say, bologna. As budgeting season approaches, we thought it would be fun to put together a list of some of the doozies. Here are the top 5 worst pieces of budgeting advice we've ever heard... 1. Budgeting should only be done once a year 2. Budgeting is a one-person activity 3. Once your budget is approved, never change it 4. Just budget from history, its only for regulators 5. Budgeting is a boring thing you have to do **Budgeting should be done once a year** Once a budget is locked, that's it, right? Wrong. Although a budget is approved, its work isn't done. If an organization wants the budget to work for them, they have to go to work for the budget - as cheesy as it sounds. Regularly checking in on initiatives, goals, resources, and realities as the year progresses is vital to staying on track. This is called reforecasting, and modern institutions that strive to stay ahead of the competition embrace it with open arms. **Budgeting is a one-person activity** The word activity is so fitting here, because that's really what the budgeting process is: a collaborative activity. As our CEO, Craig Hartman, writes in [**another blog**](https://blog.plansmith.com/community-bank-planning-is-a-collaborative-activity), at least 6 unique departments should be involved in the planning process. Communication is key to breaking down silos and maximizing the effectiveness and accuracy of numbers and forecasts. **Once your budget is approved, never change it ** This piece of "advice" has *old fashioned *written all over it. Change is a constant in the modern world, and with it comes the need for adaptation. Your budget is no different. As things change during the year at the institution, targets and metrics should also adjust to keep pace. This eliminates end-of-year surprises and disappointments, and can also lead to catching mistakes before they happen. **Just budget from history, its only for regulators** If budgeting is solely done for regulators, an organization is likely missing out on financial opportunities. One of the best ways to improve performance is to assess how resources are being allocated, then make adjustments. This is the simple basis of good budgeting practice. Why not kill two birds with one stone by impressing regulators with a solid budget, while setting and knocking financial targets out of the park? **Budgeting is a boring thing you have to do** Budgeting doesn't have to be boring. In fact, it's a huge opportunity for collaboration and team building. When your organization begins to buy into the bigger picture that planning is for the greater good of the business, the stigma associated with it will die down, and the positive benefits - including company culture - will rise up. If your organization is ready to realize the full potential of budgeting, [**click here**](https://www4.plansmith.com/contact-us/) to schedule a discovery call. Topics: [community bank forecasting](https://blog.plansmith.com/topic/community-bank-forecasting), [community bank budgeting](https://blog.plansmith.com/topic/community-bank-budgeting), [bank budget](https://blog.plansmith.com/topic/bank-budget), [credit union planning](https://blog.plansmith.com/topic/credit-union-planning), [budgeting](https://blog.plansmith.com/topic/budgeting) ### Subscribe Now! ### Posts by Tag - [community bank planning (52)](https://blog.plansmith.com/topic/community-bank-planning) - [community bank strategy (52)](https://blog.plansmith.com/topic/community-bank-strategy) - [community bank (49)](https://blog.plansmith.com/topic/community-bank) - [community bank budget software (45)](https://blog.plansmith.com/topic/community-bank-budget-software) - [credit union planning (44)](https://blog.plansmith.com/topic/credit-union-planning) - [community bank budgeting (42)](https://blog.plansmith.com/topic/community-bank-budgeting) - [budgeting (39)](https://blog.plansmith.com/topic/budgeting) - [interest rate risk (35)](https://blog.plansmith.com/topic/interest-rate-risk) - [community bank interest rate risk (33)](https://blog.plansmith.com/topic/community-bank-interest-rate-risk) - [community bank budget (30)](https://blog.plansmith.com/topic/community-bank-budget) - [strategic planning (28)](https://blog.plansmith.com/topic/strategic-planning) - [asset liability management (27)](https://blog.plansmith.com/topic/asset-liability-management) - [interest rate risk management (27)](https://blog.plansmith.com/topic/interest-rate-risk-management) - [community bank marketing strategy (26)](https://blog.plansmith.com/topic/community-bank-marketing-strategy) - [fintech (26)](https://blog.plansmith.com/topic/fintech) - [community bank ALCO (25)](https://blog.plansmith.com/topic/community-bank-alco) - [social media for community banks (24)](https://blog.plansmith.com/topic/social-media-for-community-banks) - [strategy (24)](https://blog.plansmith.com/topic/strategy) - [IRR (22)](https://blog.plansmith.com/topic/irr) - [bank strategy (21)](https://blog.plansmith.com/topic/bank-strategy) - [social media (20)](https://blog.plansmith.com/topic/social-media) - [strategic thinking (20)](https://blog.plansmith.com/topic/strategic-thinking) - [ALCO (19)](https://blog.plansmith.com/topic/alco) - [community bank forecasting (17)](https://blog.plansmith.com/topic/community-bank-forecasting) - [strategic planning for banks (17)](https://blog.plansmith.com/topic/strategic-planning-for-banks) - [ceo (16)](https://blog.plansmith.com/topic/ceo) - [Strategic Plan (12)](https://blog.plansmith.com/topic/strategic-plan) - [bank strategic planning software (12)](https://blog.plansmith.com/topic/bank-strategic-planning-software) - [community bank planning software (12)](https://blog.plansmith.com/topic/community-bank-planning-software) - [leadership (12)](https://blog.plansmith.com/topic/leadership) - [CECL (11)](https://blog.plansmith.com/topic/cecl) - [Customer Service (9)](https://blog.plansmith.com/topic/customer-service) - [playbook (9)](https://blog.plansmith.com/topic/playbook) - [alm (8)](https://blog.plansmith.com/topic/alm) - [bank budget (8)](https://blog.plansmith.com/topic/bank-budget) - [bank irr reporting (8)](https://blog.plansmith.com/topic/bank-irr-reporting) - [liquidity (8)](https://blog.plansmith.com/topic/liquidity) - [credit union interest rate risk (7)](https://blog.plansmith.com/topic/credit-union-interest-rate-risk) - [crisis planning (7)](https://blog.plansmith.com/topic/crisis-planning) - [forecasting (7)](https://blog.plansmith.com/topic/forecasting) - [budget playbook (6)](https://blog.plansmith.com/topic/budget-playbook) - [compass (6)](https://blog.plansmith.com/topic/compass) - [Outsource IRR (5)](https://blog.plansmith.com/topic/outsource-irr) - [banker education (5)](https://blog.plansmith.com/topic/banker-education) - [surge deposits (5)](https://blog.plansmith.com/topic/surge-deposits) - [bank mission vision core values (4)](https://blog.plansmith.com/topic/bank-mission-vision-core-values) - [continuing education (4)](https://blog.plansmith.com/topic/continuing-education) - [credit union budgeting (4)](https://blog.plansmith.com/topic/credit-union-budgeting) - [millennials (4)](https://blog.plansmith.com/topic/millennials) - [reforecasting (4)](https://blog.plansmith.com/topic/reforecasting) - [IRR Assumptions (3)](https://blog.plansmith.com/topic/irr-assumptions) - [board training (3)](https://blog.plansmith.com/topic/board-training) - [branch budgeting (3)](https://blog.plansmith.com/topic/branch-budgeting) - [decay rate (3)](https://blog.plansmith.com/topic/decay-rate) - [millennial employees in banking (3)](https://blog.plansmith.com/topic/millennial-employees-in-banking) - [rising rates (3)](https://blog.plansmith.com/topic/rising-rates) - [what-ifs (3)](https://blog.plansmith.com/topic/what-ifs) - [AI (2)](https://blog.plansmith.com/topic/ai) - [FDIC (2)](https://blog.plansmith.com/topic/fdic) - [backtesting (2)](https://blog.plansmith.com/topic/backtesting) - [bank brand marketing (2)](https://blog.plansmith.com/topic/bank-brand-marketing) - [board of directors (2)](https://blog.plansmith.com/topic/board-of-directors) - [compliance (2)](https://blog.plansmith.com/topic/compliance) - [cost center budgeting (2)](https://blog.plansmith.com/topic/cost-center-budgeting) - [deposit study (2)](https://blog.plansmith.com/topic/deposit-study) - [deposit trends (2)](https://blog.plansmith.com/topic/deposit-trends) - [funds transfer pricing (2)](https://blog.plansmith.com/topic/funds-transfer-pricing) - [market intelligence (2)](https://blog.plansmith.com/topic/market-intelligence) - [millennials in banking (2)](https://blog.plansmith.com/topic/millennials-in-banking) - [modern human resources strategy for banks (2)](https://blog.plansmith.com/topic/modern-human-resources-strategy-for-banks) - [peer analysis (2)](https://blog.plansmith.com/topic/peer-analysis) - [stress testing (2)](https://blog.plansmith.com/topic/stress-testing) - [Insider (1)](https://blog.plansmith.com/topic/insider) - [asset prepayments (1)](https://blog.plansmith.com/topic/asset-prepayments) - [baby boomers (1)](https://blog.plansmith.com/topic/baby-boomers) - [brand (1)](https://blog.plansmith.com/topic/brand) - [client spotlight (1)](https://blog.plansmith.com/topic/client-spotlight) - [contingency funding plan (1)](https://blog.plansmith.com/topic/contingency-funding-plan) - [credit union strategic planning software (1)](https://blog.plansmith.com/topic/credit-union-strategic-planning-software) - [employee human resources for banks (1)](https://blog.plansmith.com/topic/employee-human-resources-for-banks) - [event (1)](https://blog.plansmith.com/topic/event) - [financial institution succession planning (1)](https://blog.plansmith.com/topic/financial-institution-succession-planning) - [funding (1)](https://blog.plansmith.com/topic/funding) - [loan prepayments (1)](https://blog.plansmith.com/topic/loan-prepayments) - [market analysis (1)](https://blog.plansmith.com/topic/market-analysis) - [negative rates (1)](https://blog.plansmith.com/topic/negative-rates) - [policy (1)](https://blog.plansmith.com/topic/policy) - [ppp loans (1)](https://blog.plansmith.com/topic/ppp-loans) - [profitability (1)](https://blog.plansmith.com/topic/profitability) - [sensitivity testing (1)](https://blog.plansmith.com/topic/sensitivity-testing) - [social video for banks (1)](https://blog.plansmith.com/topic/social-video-for-banks) - [strategic action plan (1)](https://blog.plansmith.com/topic/strategic-action-plan) - [trade show (1)](https://blog.plansmith.com/topic/trade-show) See all ### Recent Posts - Navigate - [Home](https://www4.plansmith.com/) - [Budgeting](https://www4.plansmith.com/budgeting/) - [Asset Liability Management](https://www4.plansmith.com/alm/) - [CECL](https://www4.plansmith.com/cecl/) - [Strategy](https://www4.plansmith.com/strategy/) - [Market Intelligence](https://www4.plansmith.com/market-intelligence/) - [About](https://www4.plansmith.com/about/) - [Contact Us](https://www4.plansmith.com/contact-us/) - Products - [StrategyGPS](https://www4.plansmith.com/strategygps/) - [Compass](https://www4.plansmith.com/compass/) - [BankersGPS](https://www4.plansmith.com/bankersgps/) - Resources - [Blog](https://blog.plansmith.com) - [Videos](https://plansmith.wistia.com/projects/7qemazkqii) - [Compass Tutorials](https://info.plansmith.com/compass-tutorials) - [Lunch n' Learns](https://info.plansmith.com/lunch-n-learns) - [Webinars](https://www4.plansmith.com/webinars/) #### Contact 1827 Walden Office Square, Ste. 350 Schaumburg IL 60173 Toll Free: 1.800.323.3281 Local: 1.847.359.4045 Fax: 1.847.705.8200 info@plansmith.com Copyright 2018 | Plansmith Corporation ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Megan Plis", "url" : "https://blog.plansmith.com/author/megan-plis" }, "dateModified" : "2019-08-01T13:08:09.650Z", "datePublished" : "2019-08-01T13:08:00.000Z", "headline" : "The Worst Budgeting Advice We've Ever Heard", "image" : [ "https://blog.plansmith.com/hubfs/budgetblog.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.plansmith.com/the-worst-budgeting-advice-weve-ever-heard", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.plansmith.com/hubfs/Plansmith-Logo-Budgeting-ALM-Outsourcing-01.png" }, "name" : "Plansmith" } } ```