5 of the worst tips on budgeting

When it comes to tips on budgeting, people often give terrible advice on all sorts of things.

Sometimes, even though you know the advice is actually terrible, habit means we continue to make budgeting mistakes. Everyone falls into these traps sometimes, but knowing what they are before you get there can help you avoid them. Here are five of the top budgeting tips that you should definitely avoid:

1. Shop for a mood booster

It's true that when you're swiping that plastic and getting new things, you'll feel better . . . for a short while! Then you have to look at the bank account and realise just how much money you spent on things you didn't need, and the guilt, fear, panic, or anger sets it. Instead of making you feel better, impulse buying actually makes you feel worse in the long run.

Living on a budget doesn’t mean that you never get to buy new things or go shopping. It just means that you have a set amount to spend when you do. When you take time to buy things you really want with money you’ve already set aside, you can have all the pleasure of shopping with none of the resulting negative feelings and consequences.

2. Buy food when you're hungry

This is one of those tips on budgeting that you can immediately see is ridiculous. You should never go food shopping when your stomach is growling.

You’ll end up with a trolley full of food that you can’t use before it goes off, and chances are likely that you’ll splurge on expensive products and treats too!

3. Making lists is for losers

Lots of impulsive people like to think that making lists is ridiculously grown up and boring. If you feel a little stuffy when you make a list of things to buy at the supermarket, clothing store or home store, just think about how much money a list will save you. Having a proper list will help you avoid buying things that you don't need. Plus, when you have a list, you can check prices more easily to get what you do need for less.

4. Just make it up as you go along!

One of the worst tips on budgeting is to simply wing it! Many spontaneous people like to live their lives this way, but it can be a huge problem for your budget. Having no spending and savings plan is how many people end up with credit card debt or unable to pay the really important bills, like their mortgage! You don't have to be totally obsessive about your budget to work with a plan, but you do need to have a good idea of how much you can afford to spend on different items so that you don't run short at the end of the month.

5. Loyalty pays.

This is actually one of those prevalent tips that many people tend to believe. They think that if you stick with the same energy company or insurer, you'll get better rates and service. This is absolutely not true. You should be shopping around for different credit card offers, insurance offers and banking deals at least once a year so you know you're getting the best possible deal.

Some of these tips on budgeting are pretty obviously things to avoid, but others might sound pretty tempting. Before you fall into any of these mistakes, take time to make sure you have a budgeting plan. Just making a plan and using common sense to stick to it – by doing things like avoiding impulse buying and food shopping when you’re hungry – can save you tons of money and give you a better life.