Learn how to manage your money and save by avoiding these 10 budget pitfalls. Creating a household budget and learning new budgeting money tips can be intimidating but it is possible. However, there are 10 budget pitfalls you should avoid in order to save money.

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  1. FAILING TO PAY TITHES
    • Malachi 3:8-9 KJV states “Will a man rob God? Yet ye have robbed me. But ye say, Wherein have we robbed thee? In tithes and offerings. Ye are cursed with a curse: for ye have robbed me, even this whole nation.” I don’t know about anyone else but the last person I want to rob is God. You can’t expect God to bless your budget if you aren’t paying your tithes.
  2. IMPROPER PLANNING OR NO PLANNING AT ALL.
    • If you don’t create a budget and stick to it, then you are bound to fail. Click here to learn how to create a budget.
  3. UNNECESSARY PURCHASES
    • 500 channels on Direct TV – You don’t have enough time to watch that many channels! Cut back where you can.
  4. NO SELF CONTROL 
    • Sometimes we just have to say NO. If you know you can’t afford it or should apply the money elsewhere, just say NO to the purchase and walk away – it’s that simple!
  5. TRYING TO KEEP UP WITH THE JONES’ (COVETOUSNESS)
    • Have you ever wanted something just because you seen someone else with it and then you went out and bought it? That’s called keeping up with the Jones’ a.k.a Covetousness. I have been guilty of this myself. Once when I was in middle school, my 2 best friends got new leather jackets, so I exchanged all of my Christmas gifts for a new leather jacket. Now, does that make sense? No, but there are adults still doing this today. They see their neighbor, coworker, etc with a new car so they trade their loan free car in for a new car (that came with a payment).  We never really know if the Jones’ could afford it. Did they finance it? Lease it? Borrow It? The point of the story is, don’t try to keep up – do what works for you.
  6. ALWAYS EATING OUT
    • With us being such a busy society, it is extremely hard for us to find the time to cook meals at home but eating out everyday for breakfast, lunch and dinner could be a major budget pitfall. Trust me, I know from experience. However, there are so many ways to overcome this issue by ‘meal planning’. A website I suggest is Crockin Girls. They have so many quick recipes for affordable meals that will save you so much money and only cost you a little bit of time.
  7. OVERDRAFT FEES
    • Hmm this goes right back to creating a budget and sticking to it. If you are aware of how much money you are making and every dollar you are spending, then you are less likely to encounter overdraft fees. Most banks charge $30-$35 per transaction, therefore this could be a huge budget pitfall and could possibly set you back.
  8. TAKING ON MORE THAN YOU CAN HANDLE
    • We have all heard the saying ‘Live below your means’ which basically means don’t take on more than you can handle. Don’t sign up for the highest cell phone plan, buy the best house in the neighborhood or purchase the most expensive car on the lot if you can’t afford it.
  9. IMPULSE BUYS
    • A lot of impulse buys take place around tax time. People buy big ticket items without sitting down and doing proper research. Before making a large purchase (house, car, plasma tv, new cell phone etc), ask yourself the following questions:
      •  What if I run into hard times, will I be able to make money if I have to sell it?
      • Have I compared prices with other stores/companies?
      • Have I searched for coupons?
      • Are there any deals available (sometimes I ask the cashier or manager).
      • Can I buy it used – i.e, Goodwill, Craigslist.
  10. FAILING TO PAY THE ENTIRE BILL
    • If you are always paying on your bills (electricity, gas, water, cable, car note, etc) and never fully paying them, then this will cause you to have unnecessary late fees which is money that could be going into your pocket. This will definitely have a negative impact on your budget.

Avoiding these pitfalls will definitely increase your financial health and help you manage your money more wisely. If you liked this post, please share and subscribe.