When handling money you can easily spend more than you earn, leading you further into debt. The following behaviors may signify that you need to become more aware of how you handle your finances; these tips may help you to analyze and increase your budgeting savvy.

Mistake #1: Don’t Determine What Money Means to You

When you think about or discuss money do you get anxious and edgy, argumentative and immobile, or stay calm and in control? How do you prioritize your spending? How does this differ from your spouse, children or anyone who may share your finances? Being clear about your relationship to money will allow you to clearly evaluate how much you spend and what could be eliminated from monthly expenditures.

Mistake #2: Be Unaware of Money Coming in and Money Going out

Calculate your total gross and net household earnings, and your disposable income. Then create a spending plan that helps track your expenses. Next determine how much you spend on housing, food, automobile(s), recreation, clothes, savings, medical/ dental and investments, as well as any incidental items, like gifts. Afterwards reallocate your expenses: 38 percent on housing, 12 percent on food, and 15 percent on automobile(s). The free budget calculator at Mapping Your Future may be helpful; research other online sources for a tracking plan that works for you.

Mistake #3: Spend Beyond Your Monthly Budget

Don’t spend money that you don’t have by using credit cards. Spending on credit cards will only create further debt, along with interest accrual on items that could have been bought with cash. Avoid impulse shopping by making a list of exactly what you need (this is extremely important during holidays). Whether you choose to use cash, checks or a debit card, be sure you know exactly how much you can spend in any given week.

Mistake #4: No Checks and Balances

Be sure to balance your checkbook on a regular basis. If your bank makes erroneous transactions, or you incorrectly calculate your figures, you could be facing checks that bounce and high overdraft fees (usually $25-$40 per transaction). Avoid this by picking a convenient day and a 10-30 minute slot of time to sit down with your checkbook-- manual or electronic-- and your bank statement. Compare your bank statement to your checkbook and reconcile your checks, debits, ATM withdrawals, service fees, and interest earned. Do this regularly and save those overdraft fees for a summer vacation.

Mistake #5: Underestimate Food Costs

Almost everyone enjoys dining out, eating in and fast-food lunches. But often times with busy schedules, the morning latte leads to a bagel and Wednesday night Chinese takeout, Thursday lunch with friends, Friday night pizza and another restaurant on Saturday. Those $60 meals of convenience add up over a course of a month and a year, decreasing your disposable income. When eating out without budgeting first you tend to underestimate the expense. Keep a spending diary for 30 days and discover how much you spend on your eating habits.

Mistake #6: Fail to Calculate Unforeseen and Occasional Expenses

Auto repairs, medical bills, baby showers and weddings, and broken appliances—all need funding at the most inconvenient times. Avoid using credit cards to cover these expenses by starting a contingency fund. This emergency money could help during a financial crisis. A contingency fund can be used to replace a car, fix appliances and make unexpected travel plans, without tapping the family operating budget. Between 5 and 10 percent of your net spendable income should be allocated to this fund and be sure to replace the money when you spend it.

Mistake #7: Fail to Make a Schedule to Defeat Debt

If you have debt, beyond housing and auto expenses, and cannot pay creditors in full with one payment, set up a payment schedule to pay off debt regularly. Use cash and forego unnecessary or impulse items. Pay off the credit card with the highest interest rate first. After that card has a zero balance, add the monthly payment to another credit card or car payment. You could transfer your debt to a lower interest rate card and save more money on interest rates.

Mistake #8: Possess Too Many Credit Cards

Cut your cards up or leave them at home. Don’t be tempted by high interest rate retail cards. The more credit cards you have, even if they have a zero balance, the higher your credit line becomes. This could ultimately lower your credit score. Use cash or bank debit cards whenever possible. If you must charge, be sure to pay the full amount within the 30 day billing cycle. 

Mistake #9: Don’t Catch Sales and Bargains

Don’t buy clothes, furniture and even food at full price, and especially shop around when buying a car. Stock up on essential goods, like toiletries, when they are on sale. Check the local paper, or insert advertisements for one day sales at department stores. Shop for clothes out of season. Buy a coat in warmer months and sandals in the colder months. 

Mistake #10: Fail to Change Your Habits

Review and reassess your spending plan. At the end of the month review your spending habits. Look through your diary and see how much money you spent. Check your contingency fund and debt ratio to earning and determine if you need to decrease spending or increase your earnings.