Consequently, they may be forced to sell out to a stronger competitor or close the door and put the company out of business. But with budgeting and forecasting, this small business will be slowly on its way to becoming big and strong enough to withstand the demands of the competitors and the entire market in general. 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. This budgeting tip could prevent you from consuming the water you have left and it also dampens your risk of getting dehydrated. By planning on paper first, you will be able to lessen the risks associated with your business venture. A good budget can build morale by helping you organize, communicate and motivate employees to contribute their essential time and effort in achieving the company's financial goals. Truly, a budget is an indispensable tool for converting business plans into a successful reality. For evey income that comes in, automatically save five percent (5%) from it. That five percent shall be used specifically to pay debts. It shall not be used for any other purposes. 5. CUT CORNERS Compare the income and the expenses. In debt management budgeting, if the expenses are larger than the income, you are going to have to look at cutting corners. Even perfectly matched and compatible couples can be driven mad by their partners' spending habits. Talk to your doctor about a marriage counselor who can guide you and your partner through this challenge. Eliminate debt. The first step to eliminate debt is to stop accumulating more. Then you can eliminate it. Knowing between needs and wants is essential since your perception will determine whether you spend your money on it or not. Advertising is so powerful these days that you may think of luxuriuos items as "needs" when in fact you dont actually need them. These deceiving commercials on TV greatly influence your purchasing and personal finance budgeting behavior.