To staff members, budgets get in the way of proposed activities. To finance committees, budgets hold staff members accountable. To most, it consumes too much time and effort. However, budgets are important to any person or organization's success. Budgets are guides to show the allocation of resources. ASK FOR DEBT RESTRUCTURE OR AVAIL OF AMNESTY PROGRAM Take advantage of the amnesty program that banks and credit card companies offer. Most especially for the credit card companies, they offer payment of principal amount less the padded interest. This will help make budgeting and managing your debt easier. " Activity based budgeting is a method of budgeting in which activities that incur costs in each function of an organization are established and relationships are defined between activities. This information is then used to decide how much resource should be allocated to each activity. In other words, activity based budgeting is budgeting, planning and controlling by activities rather than cost elements of an organization. Think of savings as part of expenditure; deduct it from your salary the way you do with utility bills, rent and other necessary expenses. Ten percent is automatically added to your savings account every pay day Budgeting and planning means never finding an excuse not to save. 3. Investing Make an investment plan - Savings are meant to keep us warm during stormy nights; and when used wisely, savings can help us achieve financial freedom before we actually retire. Budgeting and forecasting establish realistic expectations and goals for management to guide the organization forward. Budgeting and forecasting scenarios can be integrated into your financial reports and extend their use for future cash flow projection, variance reporting, and return on investment. If an organization's sales volume is projected to increase significantly over a period of time, first and foremost it must be able to make a good budgeting and forecasting. You most likely know how much you earned last month, but do you know how much you spent? If you dont, you are not the only one who doesn't. According to survey, most people spend 10% more than they make! Why is it hard to track spending? It is difficult for people to track their spending and whether it is wise or not because they cannot decifer between needs and wants.