Not distinguishing between needs and wants
Misclassifying a want as a need is a mistake that many people make without even being aware of it. For example, food is a basic necessity, but eating out three times a week is a want. Clothing is a necessity, branded clothing is a want. And why pay $50 to $100 a month for cable TV when you can subscribe to Hulu, Netflix, or Amazon at a fraction of the cost? If you think about it, there are several things that you can do without but pay for anyway because you have got used to it. So, scrutinize your monthly budget carefully and see if there are any wants masquerading as needs. By cutting down on such unnecessary spending, you can save more money and reach your budgetary goals faster.