Top Seven Budgeting Mistakes

Budget, Budget, Budget- Only families with children and the white picket fence need one of those, right? WRONG…everyone should use a budget.
Did you know that many people don’t even know how to budget?
You see most people don’t talk about finances let alone chat about where their money is going. Try telling my old school parents about budgeting and you better duck as hands will be swinging.
Whether your plan to start a budget is to get out of debt or stay ahead of the race don’t linger around the Jones’ pad as you might be calling on Uncle Jed to bail you out.
Did you Know?
  • In 2011, the Vanier Institute of  the Family released data claiming the debt-to-income ratio is a record 150% noted at


Seven Common Budgeting Mistakes
  1. You don’t have a budget- If you are wondering why you can’t get that new toy or why you can’t sleep at night it’s because you don’t have a budget. Designing a family or personal budget will keep your spending and saving on track.
  2. You don’t save your receipts- It’s so important to keep all your receipts so you enter this data into your budget binder spreadsheet. If you lose a receipt it’s difficult to track the money you spent.
  3. You don’t tweak the budget when needed- On a regular basis I recommend you go over your budget to see if there are areas that need improving. An example would be your Phone Bill is increasing by $4.00 a month. You need to make these adjustments in the budget for it to balance.
  4. You don’t use coupons- I believe every household should use coupons. When I see coupons I see $$$$$ and who just walks by $$$ and says bleh, who cares.  Even wealthy people use coupons, just look at the Kardashians.
  5. You don’t Haggle; It’s so important to haggle with your utility companies, credit card companies etc. When it’s time to renew ask for discounts and promotions. Call credit card companies and ask them for a lower interest rate. Never say never unless you try. Save yourself a buck or 10.
  6. You’re not organized- It’s imperative to keep all the information you gather in a labelled file folder for easy access. The neater you are the likelihood you will continue working hard on your budget. K.I.S.S- Keep It Simple Stupid!
  7. You use your Gross  Earnings – The biggest mistake and I’m sure many will agree is designing your budget using your gross income.
  • For example, would you try to buy an item for $100 cash when you really have $80 in your pocket? Probably not because you’d look like a fool at the cash register. Your take home pay from your employer is your NET earnings. You want to use this number when plugging numbers into your Canadian Budget Binder Sheet.
Well there you have my Top Seven Mistakes when Budgeting.
What other mistakes can you think of?
You can find me on Facebook HERE or Twitter HERE. come join the conversation.
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I’m from the UK and now a recent permanent resident in Canada. I bought my first house at the age of 21 after University then my second at the age of 24. I’ve always been fascinated with personal finance, savings, learning to make money and watch it grow while combating debts along the way. Canadian Budget Binder is a place where I get to share my experiences with personal finance and learn about yours along the way. I hope you stick around and check me out on Twitter, Facebook and Pinterest where I am active on all social media sites. Cheers, Mr.CBB


  1. I love Airmiles too! I use them for GC’s and for the moievs at Galaxie, for 175 points you can get a pass for 2 admissions and 2 reg. drinks and a reg. popcorn! It’s a night out free! (well plus a sitter)

  2. A lot of people don’t realize how much their little spending jaunts add up to huge overspending! Totally agree with keeping receipts OR tracking your daily spending. You’d could totally be flabbergasted!

    • That’s what happened to us. Although we thought we were frugal with everything we did it was all the little things. Once we did the budget last year WOW.. it was amazing how much we were actually spending. Now we know why people are in debt. It’s not rocket science it’s investing in your own finances. Time is money!

  3. My biggest financial mistake ever was buying too much house. We loved the space but it cost us ‘way too much to heat and to maintain. The greater property value meant higher property taxes too. Paying to maintain more space than you need can be very expensive and, as we learned the hard way when I got sick, that money would be better saved for emergencies.

    • I would love to share your story about this financial lesson you learned and what you did about it. If you ever want to share the story, email me. I think the fans would enjoy it and learn a lesson from you. Cheers Mr.CBB.. I also commented on FB for you.

  4. Tara Knott says:

    After reading blog I vow to start keeping better track of my receipts so that I can track my money better and hopefully understand where it goes and work on changing/ lessening some of that :)


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