2. Entertainment Costs

A night out at a bar, or going to the movies with your friends should definitely be part of your budget. Many people will cut back drastically on this category, and then end up either overspending or feeling frustrated because they can’t afford to do anything.

You should have an entertainment category that will allow you to spend time doing the things that help you to relax. You may need to cut back to one or two nights out a month and look for less expensive alternatives.

3. Clothing

If you do not love shopping for clothes, you may leave this item out of your budget. If you are focused on getting out of debt, you may be diverting all of your money to extra debt payments.

Leaving clothing out of your budget means that needing a new pair of shoes, or new pants may throw your entire budget out of whack. Budget a little bit each month and allow the balance to grow so you can cover the items you need when you need them.