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. But if you do not return to the budget the amount you have taken, then there will be some dark moments in your life as well. Your power will be cut off, until you pay. You have to make us of candles, instead of buying high-powered batteries for lamps, to have light in your house, but you must be careful not to burn your house down. your groups can be work-related, shopping, utility bills, insurance, car maintenance, meals, or any groupings that actually make sense to you. After you have listed your expenses in a month, and having been able to group them, get the total of it all. Hopefully, it is less than your income in that particular month. 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. Number them according to importance. 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. Then you indicate an expense category for each check. You can clip out grocery coupons or check the mailers if any of the regular items you want to buy are on sale. You should always pay yourself first before spending money on anything. This means that you should always create a part of your household budget into savings. Every pay check, take 5 to 10% of your household income into your savings account and do not touch it.