The most important thing about budgeting is budgeting itself and there's no wrong way to do it. But there are some mindset shifts that will make the process a lot easier.

Five things to avoid when budgeting and what to do instead:

1. Approach Avoidance

Maybe you've been keeping the status quo for a period of time and the idea of digging in & making changes is overwhelming.

There's a reason you've got a nagging feeling that your finances aren't what you want them to be.

Try this instead: Lean in.

Knowledge is power and you can't get to where you want to be if you don't know where you are now. Yes, there will be some definite moments of discomfort, but that's just life. Once you sludge through the discomfort you'll be able to see potential for growth. And once you see that potential, you can make an action plan (in all of its glorious imperfection).

2. Negative Self-Talk

Ooooh, late night spending sprees. I love them. I love the spontaneity. I love treating myself & tracking the shipment. And then...the arrival 😍.

And then it goes downhill because I've busted the budget. Gone Rogue. Wild'n out. Rebel without a cause. And then comes the guilt and the "why am I like this?!" and "I'm never going to reach my goals because points to self so I might as well just...not.

Try this instead: Give yourself room to have some setbacks and learn from them.

Here's the thing. Sprees are going to happen (spending sprees, not...true crime type sprees). I like to say to myself "Huh. That was a crazy." Record the transaction in the budget...and MOVE. FORWARD.

While we're moving forward it would be a good idea to consider some of the factors that contributed to said spree. Alcohol? Depression? A celebration? Cool, maybe we should add a budget category.

3. Getting caught up in comparison

I love all things finance. And that includes sneaking a peak at other people's financial happenings. I love seeing women out there paying off massive amounts of debt, achieving FIRE and well...all of it.

But if I'm not careful I can start getting discouraged about the things I haven't accomplished. My particular pain point...early retirement. I didn't contribute to a 401k during my time as a stay at home mom and I didn't attempt to obtain half of my spouse's retirement when we divorced.

Try this instead: Get inspired.

With that being said, I steer clear of the FIRE (Financial Independence/Retire Early) movement while I happily plug along regularly contributing to my 401k.

Find people who share the goals that you have. Even better, find people who have achieved the goals that are most important to you. View their accomplishments as something you'll achieve if you stick with it.

Remember your circumstances and your priorities are unique to you.

4. Overcomplicating the Process

You know the story where NASA spent billions of dollars trying to design a "space pen" and the Soviets used a pencil? Well, it turns out that whole thing is false, but the premise rings true. You can spend hours brainstorming every single thing you might possibly spend a cent on in the next year and never actually get started with tracking your spending.

Try this instead: Start simple NOW, get fancy later.

Here's what you need to get started with budgeting: Transaction history, writing utensil, calculator. Now get to categorizing. There, that's the first step to budgeting. Next step: keep track of your transactions as they happen.

Once that's done you can dig into spreadsheets and apps and envelopes (oh my!). The process can change and evolve and so can the budget itself. In fact, that evolution is proof that you're working the plan and making progress.

If you're looking for a simple way to get started with budgeting and want some sweet worksheets to help along the way? Sign up here to download the Bite Size Budgeting Workbook.

5. Trying to do ALL the Things

DEBT FREE! SIX MONTH EMERGENCY FUND! BRAND NEW CAR! WITH CASH! COLLEGE FUNDS FOR THE NEXT 3 GENERATIONS!

It's a lot, isn't it? Overwhelming and let's be honest...it's not possible. Not all at once.

Try this instead: Pick ONE thing.

Choose one goal and put a timeframe on it. Once you've accomplished that goal, you can use the momentum and inspiration of that win to propel you on to the next step.

When it comes to choosing your first goal, my best tip is to think about what would make the biggest difference for you day to day. Which accomplishment would help you sleep at night?

For example, if you have credit card debt (say at 18%) and zero savings, conventional wisdom would tell you to pay down the debt because it's costing you money. But for me...money in the bank gives me peace of mind. When I was in this position, I hustled to get $500 tucked away in savings--less than my personal "ideal" but enough to give me some breathing room--and then got hyper-focused on that credit card debt.

So, all that being said, get started. Stick with it. Adapt as needed and keep an eye on all the things you've accomplished so far.