Review and Adjust

A common error that people make when creating their budget is that they don’t change the budget when their circumstances change.

For example, you might start a new job with a higher salary, but also a more costly health insurance premium. Or your child might move to a new daycare center with a lower weekly cost. 

If you find you’re underspending in a category regularly, you can allocate extra funds to another category or goal, like paying off debt or investing more for retirement.

Also, if you’re always overspending in a particular category, it doesn’t mean that you’re undisciplined. It could just mean that you’ve allocated too little to that specific category. Try upping the amount and see how it feels.