Budgeting software provides you with income statement, balance sheets, cash flow and other budgeting requirements to your computer. All you have to do is simply encode the necessary data which includes income, investments, and expenses related information. This organized system unifies money management for you with strategic planning, forecasting, legal consolidation, reporting, analysis, dashboards, and predictive analytics and not mere budgeting alone. Between a house mortgage and a car mortgage, label the house mortgage as 1. Then study your budget pad. Could you cut down expenses on utility bills or transportation? If yes, how much would it raise to add up to fund the mortgage? Study all possibilities of cutting down your expenses. 3. SAVE FOR THE RAINY DAYS Effective debt management budgeting means not forgetting to save. This way, the amount you're spending is the amount that is actually in your hands. Credit card allows you to spend over and above your current budget, which is bad, especially if you are not expecting any money to come in anytime soon. 2. Saving Make a saving plan - Everytime you receive an income, whethere that be from your regular salary, bonuses or sidejobs, take at least ten percent (10%) from it as your savings. Use cash whenever possible and work out realistic payments with creditors to reduce financial liabilities. Consolidating debt into a low-interest loan could be a great solution for you. Or perhaps you just need a structured repayment plan. Maintain a cash cushion. Nothing is more stressful than losing your job or receiving an avalanche of unexpected bills. With the advent of powerful and low-cost database systems, activity based budgeting is allowing businesses to reduce costs, better utilize resources, and achieve strategic objectives. The Australian National Audit Office has identified the advantages of activity based budgeting: The Advantages - Output costs are supported by a schedule of costed activities - Opportunities to examine work processes - Identifies non value-adding activities that can be eliminated - Basis of a performance measurement system and direct link between strategic goals and operational realities - Enables cost profiles to be managed - Accurate costing data for operational management - Costs are transparent, understandable and actionable Disadvantages - Activity definition may become too detailed and the model may become too complex and difficult to maintain - Underestimation of the task of collecting activity driver data - Implementation may be considered a financial management fad and there is insufficient commitment from operational managers Activity Based Budgeting Disadvantages - Usually requires buying Activity Based Budgeting software - Requires training of all managers including budgeting department - Requires people to really understand what drives their budget - Eliminates excuse that activity volume changed because it makes visible volume changes - Requires everyone to collect or estimate activity volume By understanding how resources are transformed into products or services, and byfocusing on the cost of activities, activity based budgeting helps an organisation to obtain a greaterunderstanding of how costs behave in their organization and which activities create significant amounts of cost. Most people are lucky to have anything left over at the end of the month after all the bills are paid. When someone tries to lose weight, the more they track what they are eating and how much they exercise, they better they do. The same goes for keeping a budget because it is very easy to eat something unconsciously as spending money unconsciously as well.