Start saving early. Whether you're saving for your kids' college education, a new home in a nice village, or a special out-of-the-country vacation, start saving early. It is easy to put off saving until next month, but you never know what will come up that will change your plans. So instead of putting it off, begin by making a small, automated contribution to your savings account just after each paycheck. To this end, a company must be able to prepare weekly, monthly, quarterly and yearly figures in keeping an eye on future cash flow requirements as well as making sure that expectations will be met. Without a budgeting and forecasting system that can quickly give the reflection of the expenditures of a changing business condition, it is impossible to determine the impact of such events on the bottom line and quarterly results. Budgeting Process Challenging Yet Critical For managers in today s business world and ordinary people leading their respective households, it is essential to have a working knowledge of finance. You play a role in your organization s finances, whether you realize it or not. For those who don t have training or a background in finances, you may be at a disadvantage as you sit around the management table without any knowledge in budgeting process. Another hurray for budgeting tips! It can develop your well-being. The same thing happens when you do not allot the right payment for water. You will not have water to drink, to cook and to take a bath with. Without water, there is a high risk of dehydration. Therefore, you have to keep watch that you drink only when you have to and not otherwise. There really is no need for you to invest in a fancy budgeting tool in order to do a budget, but a good one will make the job easier. Many banks are now offering free PC banking and free personal finance software. You simply dial into the bank's computer or use web-based banking services, and download the checks that have cleared your account, directly into your personal finance software. Paying for school tuition fee or electric bills is a right example of emergency situation. Only fools keep more than one credit card. If you want to go down the pool of debt then own ten. Keeping ourselves away from temptation is the first step towards debt management budgeting. 2. KEEP TAB OF INCOME AND EXPENSES Write down in your budget pad or software every debt you have, even the small ones.