1. Omitting Expenses – Not all expenses can be tracked monthly and yet they are important and must be included in the monthly allowance in order to not be caught short when the item rolls around.  Easy one, Christmas, budget every month to put away an amount that will prevent you from using credit to pay for your holiday season.  Birthdays, taxes; both property and income, health insurance, vacations are a few that come to mind.

2. Lack of Emergency Funds, Expecting the unexpected can help you glide through difficult situations. Without an emergency fund, 2- 3 months, your family could easily have it’s entire budget derailed by large car repairs, dental or medical bills or perhaps reduced wages.

3. Inadequate ability to control spending.  Use the need vs. want guideline; you need a new tire for the car vs. you want to buy tickets to a concert.   If you still find yourself spending uncontrollably, you need to leave those cards at home and only use cash.

4. Have some Mad Money.  Life can not be only about staying on budget.  You can avoid frustration and resentment by allowing for some mad money in your budget.  You work hard all week, it will be counterproductive if  you do not pay yourself occasionally with a treat of some FUN.




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