Most often than not, people pay utility bills and buy luxurious items before they a realization that there is no room to save money for other necessary expenses anymore. Zero based budgeting helps in the prevention of this problem. Zero based budgeting is a method of budgeting in which all expenses must be justified in each new period, as opposed to only explaining the amounts requested in excess of the previous period's funding. When you see how much you've saved, you will, undoubtedly, never buy impulsively again. 3. START TO COUNT IT ALL DOWN Many people don't even know where their money is being spent. To them, budgeting finances is simply laying out the money on the table, apportioning them in envelops, and labling each envelop with Bills, Rent, Amortization, Transportation, Food. Non-perishable items on sale can be bought in bulk and stored in your cupboard. For students: It will help you in budgeting money if you can get a job. A job does not only involve earning more money for you to spend outside of the money your parents send you, but it can help you boost your career potentials when you graduate from college. These would include grocery bill, or the indoor and outdoor entertainment. Your fixed expenses such as rent, car insurance, mortgage and utility bills can be lessened a little, but for the most part it will stay the same. However, do not forget that a little of everything goes a long way, so try to lessen on these expenses as much as you can. The water you have used in taking a bath can still be used for the cleaning the bathroom or for washing and brushing the dirt off your shoes. The money allotted for transportation should be handled sensibly. As much as possible, you must avoid purchasing very expensive car models. Second-hand cars are enough to take you around the state. A budgeting tool is a well-managed guideline of everything about your finances. You can find everything you expect in a budgeting tool including retirement planning, estate planning, capital needs analysis, budgeting, what-if scenarios, disability needs analysis, education needs analysis, cash flow and tax planning, balance sheets, among others.