As you go on with your budgeting, you can add more categories. Modification is constant for spending is not only limited to your regular expenditures. Irregular expenses include travel, gifts and charity, among others. You can add them to your list whenever the need arises. As soon as you make your budget, be sure to make your budget a dynamic document for success. Using coupons at the grocery store, and shopping for sale items will help cut your grocery bill. You can also limit your entertainment expenses by watching movies on video so the entire family can enjoy the movie in a price of one. The extra you save could be used to buy another video or or towards something that you really need, or want. It is also a time-consuming, multi-layered, and complex process. To streamline the budgeting process and ensure more timely and accurate budgets, companies place great value on a formalized process that produces detailed yet flexible budgets that are fully aligned with the strategic goals of the organization. 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. To better understand zero based budgeting, here's an example: Each department of an organization which uses zero based budgeting would have to justify its funding every year. Budgeting Tips Before you start budgeting, you need to know your monthly income first, mainly because almost everything is paid for by the month. Here are budgeting tips that can make the job easier for you. You can make use of a pie chart to keep your budgeting handy. In your chart, the most important necessity, which is food, should occupy the biggest slice of pie. Spending Make a spending plan - Now's the time to change your free-spending ways. To do that, track the money that's coming in and going out. Fortunately, there are easy ways to do that. Go online and search for "free budgeting software." There are many free and shareware bookkeeping software around and they are easier to use and understand than complicated finance software such as Microsoft Money and Quicken.