It states how much cash you have, your expenses and how much you need to earn. 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. The money allotted for electricity, water and tax should not be disturbed anymore. Tampering with the money allotted for electricity could give you a momentary joy or satisfaction on having purchased something else. 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. These envelopes are for food, entertainment, utilities, insurance, vacation, etc. They then spent their money from these envelopes. They always knew how much money they had left to spend, and how long it had to last. Today, there are so-called budgeting tools that can help in creating and sticking to a budget in careful consideration of how much you earn. There are different stages of the budgeting process: - plan - execute - review - report the ogranization's financing, investing and operating activities The planning stage Budgeting pertains especially to the planning stage. Budgets are tied to long-term and short-term plans to achieve the desired success factors related to quality, cost and time. Budgeting software simplifies spread sheets so you know exactly how much you have money left to spend. With it, you will quickly understand the impact of your spending habit. It effectively helps you in every step you should make to improve your finances. Simple reminders on paying your utility bills and credit card bills on time, and updating you on your savings account are very helpful features of budgeting software. Begin by listing all your expenses in groups. 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.