Not setting goals
What are you saving money for? This is the first question you should ask yourself before creating a budget. Do you want to get out of debt? Do you want to save up for a down payment? Do you want to upgrade your car? Do you want to save money for your children’s education? Whatever the purpose is, you need to define it clearly and set yourself a goal. When you try to budget without a specific purpose, you tend to lose motivation and focus after a few months. When you have a goal, on the other hand, you can stay focused and put in a sustained effort, as you know that each dollar you save and invest is bringing you that much closer to your goal.