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Are you having a problem making ends meet? Do you often run out of money before you run out of month? Are you doing your best to budget your money but it just doesn't seem to be working? A good budget doesn't have to be perfect but you need to be able to recognize mistakes you may be making that are keeping you scrambling from paycheck to paycheck. Here are 13 of the most common. Check out this list and you may discover why it is that your budget doesn't seem to be working. #9. Attempting to keep up with the "Joneses"
Your friends may not have the same financial mindset as you or may not be as budget conscience. In fact, they may be living well beyond their means. If you try to keep up with them you'll end up blowing more money than you can really afford. You don't need to cut these people totally out of your life but just be careful about those with whom you shop.
#10. Neglecting to include irregular expenses
It’s good if you already have an emergency fund to cover your unexpected expenses. But you also need to make sure that you budget for those expenses that are irregular – like your insurance premiums or tax payments – that happen just once or twice a year. The best way to handle these types of expenses is to take their totals, divide it by 12 and then add this amount into your monthly budget.
#11. "Borrowing" money from other categories
A mistake that many people make is to borrow money from other categories when they run short in one. If you have a week left before payday and have spent all of the money in your entertainment budget, don't borrow from your grocery budget. That's just a surefire way to mess things up.
#12. Failing to budget for fun
Spending less money and being serious about your budget doesn't mean you have to sit at home every day staring at your HDTV. You need to blow off steam occasionally and it's not irresponsible to have a little fun with your money. No matter how careful you are in your budgeting it won't work long term if you fail to allow for some fun stuff even if it's just going out to a movie every couple of weeks.
#13. Not choosing the right budgeting software
It seems like there are a zillion different budgeting tools and apps available and it's important to choose the right one. Many people choose Mint.com just because it's popular and they've heard of it. But it may not be right for you. You need to look at some different options and then choose the program or app that you would be most comfortable with. Pick one, experiment with it and then if it seems too complicated or cumbersome, move on to different one until you hit on one that works for you.
Finally, here is a brief video courtesy of National Debt Relief that reveals several other common mistakes people make in budgeting.