You're likely making one of these five common budget mistakes

I still remember the first time I sat down to do a proper budget. Not having done one before, and not exactly one to follow the advice of others, I grabbed a clipboard, some A4 paper, a calculator and a pen.

My ex-husband wanted me to take over managing our day-to-day expenses for a while, but he was shocked to see me with my archaic 'tools'. He tried to convince me to use a program such as Excel. He even showed me how to use it.

After he had finished trying to explain it to me, I shut my computer down, made a cup of tea and sat down and started scribbling.

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The method I devised I follow to this day. There's something about writing it all down, scribbling, making notes and corrections that appeals to me and I carry that clipboard around with me everywhere, making changes, adding things in, taking them out.

It works for me and when it comes to doing your budget, whether you use a pen and paper, Excel or an app, you have to do it in a way that works for you.

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But there are some things to keep in mind. There are five common mistakes people make when it comes to budgets and none of them have anything to do with the tools you use to manage them.

Watch the video above to find out how to avoid these costly errors.

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