This way, you do not need to pay extra for your household helpers, and at the same time, you learn how to do household chores on your own. Budgeting tips can sure do miracles for those who are overly dependent on their maids. Clothes need not be branded. You do not go out for other people to check the tag on your shirt. Being a good example to them and budgeting money wisely, if the best way you can teach them. Passing on good financial habits to them is one of the best gifts you can give your children that will make them responsible and successful in the future. Budgeting money is for everyone. Regardless of age, size, weight or height, and status in life. This will give you the idea of the amount and timing of your cash flow on a monthly basis. You will also see the incoming and outgoing of cash that occur weekly, monthly, quarterly and annually. You will understand if your expenses are too high and your savings are too low to meet your financial needs that allows you live comfortably. 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. Without a good system, your bills can pile up and you find yourself jolting out of complacency when it is time to pay them. Debt problems are another obstacle that blocks your financial freedom. Factors are given adjustments to arrive at the figures of current year's budget. On the other hand, zero base budgeting starts from scratch. Previous year prices are not used for any calculation. In zero based budgeting you are given a fixed period of time, the next quarter or year for example. You are asked make a justification on the proposed expenses during that time period solely on their rewards. 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.