4. Prepare for worst-case scenario—and holidays
Yes, your weekly or monthly expenses are more pressing and immediate than long-term expenses, but a successful budget incorporates both and keeps emergencies in mind. Also, don’t leave out birthdays, holidays (e.g. Halloween costumes for you or your kids), and one-time expenses.
Along with storing money for special occasions, putting a portion of your income into savings helps you see a more accurate picture of your spending money.
The whole point of a budget is to stop seeing your next paycheck as one lump sum and see it in those spending categories above. The more savings you allow, the more successful your budget will be.