As a nascent budgeter, I’ve discovered a few reasons my previous attempts at budgeting didn’t result in saner spending and living within my means. I’m using PearBudget now, and while I’m still making mistakes, I have a few lessons to share.

Among the causes of my budgeting failure:

Setting rigid and unrealistic spending limits for each category - this happens when you create a budget without knowing how much you were spending before you started budgeting. Sticking to a budget is going to feel like pulling teeth if you unwittingly slash your entertainment budget (theoretically, the money you spend doing the things you enjoy most in life) by 90%. Start by determining what you’re currently spending, and if something is out of whack (like the $120 I spent at Starbucks this month), make a modest adjustment (like cutting back to $80 for next month, not $3).

Unrealistic amounts budgeted for basic needs - this is a special case of the previous point. When I created my first budget, I was greatly frustrated to realize that we’d under-budgeted for food and gas and other necessities. Given the choice between going hungry (with money in the bank!) and breaking the budget, we chose the latter, spent the entire paycheck each month, and forgot about budgeting for a few years. Keep track of, but do not stress over, budget categories that are absolute necessities and that you can’t do much about (such as your utility bills).

Failing to track irregular expenses over time - one of the great things about PearBudget is that it lets you track those expenses that are sure to come up, but not on a regular schedule, such as car repairs, Christmas presents, or vet bills. See this post for more.

Excuses for buying big-ticket items on credit - I shudder to recall how many times I’ve justified a major purchase on the grounds that I can pay it off quickly, and that I won’t make similar large purchases again and again until my credit card is paid off. Neither of these excuses is true, and both have lulled me into thinking my spending on big-ticket items was under control; my first reality check is usually a maxed-out credit card. Set up an irregular budget category for major purchases, and set aside money each month until you have enough to buy what you want to buy. I recommend an ING Direct savings account, which is free and will set aside money automatically each month.

So, why the post about failed budgeting attempts? Because you can learn from my mistakes. However, I’d also like to learn from yours, so leave a comment if you have an example of what not to do.