Looking to keep your budget in check in 2026? Check out these budgeting mistakes to avoid.
The following is a guest post jesse fearon:
I can’t believe it’s already 2026. But now it’s 2026. Maybe you’ve set a lot of goals for this year and are already on your way to achieving them. That’s amazing!
But I also know, as I’m sure you do, that it’s very difficult to maintain the energy of New Year’s resolutions all year long. After all, you never know what will happen in your life this year. We can face unexpected heartache, immense joy, or both.
And since many of us (myself included) are setting financial goals in the new year, I thought I’d share some common mistakes I see when coaching clients, and mistakes I’ve made over and over again.
Three budgeting mistakes to avoid:
If you want to stick to your financial goals this year, keep an eye out for these budgeting mistakes as the year begins.
1. Not tracking your daily expenses.
Yes, I know this is boring and not necessarily fun, but I can’t stress enough how powerful it is to track your daily expenses.
This is a must if you want to reduce waste! Nothing forces you to be more conscious about your expenses and how you spend your money than tracking every single expense. I use Erin Condren’s Budget Planner to manage my budget, but you can use paper, a notes app on your phone, a spreadsheet, or anything else.
I’m a big fan of manual tracking (i.e. tracking without relying on an app). Because in a digital world we are very disconnected from money. Many of us no longer even write paper checks to pay our bills. We pay everything online. So there’s a bit of a disconnect between our bank accounts and our brains. The best way to fix this is to manually track your spending.
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2. Underestimate unexpected expenses.
We get it – unexpected! How could we have predicted unexpected expenses? But do they really exist? that Is it unexpected? 
The problem here is that if you drive a car and expect to keep it running for a long time, there will be maintenance costs that you will have to pay throughout the year. In other words, the oil itself does not change. (I drive a 23 year old car.Trust me, I know firsthand how important it is to keep up regular maintenance to make your car last longer. )
The same goes for Christmas. What if you felt unprepared for Christmas just a month ago? It’s almost time to prepare for Christmas so you don’t fall into that predicament Also this year.
If you own a home, you need to keep up with regular maintenance to avoid big expenses. After all, maintaining our cars and homes (just like our bodies) prevents bigger emergencies from happening later.
These expenses are not unexpected. they are price of ownership. The same goes for children and pets. If you have a petyou probably know that your cat needs to go to the vet at least once a year for vaccinations, as well as flea and tick medication and food. If you have kids, you’re bound to have a birthday party or two, field trips, sports, piano lessons, and more.
What’s the solution? Sinking funds. You don’t need to create a sinking fund for everything right now. However, it is a good idea to make a list of all the expenses that derail your plans (car maintenance, child-related things, Christmas, vacations, etc.) and arrange them according to priority. For example, you might want to prioritize car or home maintenance over saving for a vacation.
Set a threshold amount, the minimum amount you want to save in that account. You can spend as much as you like, but we recommend at least $1,000 for home and car maintenance. Even if it doesn’t cover the total cost, it will help offset it. Then, once you reach the threshold, you stop contributing to that sinking fund and move on to the next fund on the list.
3. Ignoring the importance of an emergency fund.
Now, I know it’s weird to put this last, but this is usually the one that overwhelms people the most. You need an emergency fund — it’s non-negotiable. Seriously, it’s necessary. An emergency fund for beginners should have at least one month’s worth of living expenses. your An emergency fund is your safety net For when your life is turned upside down. People always ask me how they pay for car repairs that cost more than their auto repair sinking fund. The answer is an emergency fund. That’s what it’s for. It’s not there to pay for an oil change. It’s there to pay for communication charges that suddenly get cut off.
An emergency fund can help you survive when the going gets tough, so take it seriously this year and prioritize saving for an emergency fund. (You can take small steps and start using our services $100 savings challenge!)
These are just some common budgeting mistakes I see (and am guilty of myself!). And I believe that if we just work on these three things this year, we’ll end 2026 in a better financial position than we started.
Jessi Fearon is a 2023 Audible bestselling author. deal well with moneya certified financial coach who specializes in helping families learn how to better manage their money. She is also a homeschool mother of three children and a furry mother of two dogs and an energetic barn cat. Jessie and her family live in the North Metro Atlanta area.
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- Free printable budget spreadsheet!
- Free Budgeting Goals Worksheet
Which budgeting mistakes are you most likely to make? Do you have any advice for avoiding them? We’d love to hear from you in the comments!
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Managing your budget doesn’t have to be a complicated task. please use these free budget spreadsheet Easily plan and track your monthly expenses.
Source: Money Saving Mom® – moneysavingmom.com
