Finance software lets you track all your check writing by category and makes monthly comparisons of your actual spending to the amount you've budgeted. Use a debit card instead of your credit card. This way, the amount you're spending is the amount that is actually in your hands. Credit card allows you to spend over and above your current budget, which is bad, especially if you are not expecting any money to come in anytime soon. Research In this phase, you evaluate your revenue position, understand your business' cost structure and research on your competitors' businesses. 2. Analysis There is a need for you to analyze possible revenue and expenses for the next year, and at the same time, decide on one set of revenue and expenses to represent your expectations. The key is to (1) find the persons who could offer the services you are looking for in the least amount there is in the market and (2) learn to apportion your money properly, or in other words, learn to budget. The first one is easy. All you have to do is scout, scout, scout: in the internet, thrift shops and local markets. Regular tune ups and oil changes will help prevent costly damages to your car in the future. For children (how and when parents should teach them about budgeting money) Budgeting money should be taught to kids as soon as possible. They do not automatically become financially responsible. You can start discussing on budgeting money on an ongoing basis. The budget is thereby easily reviewed, negotiated, modified and managed for approval and implementation. 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. 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 advantages of zero base budgeting - efficient allocation of resources as it is based on needs and benefits - managers find out cost effective ways to improve operations - detects inflated budgets - useful for service of department where the output is difficult to identify - increases communication and coordination within the company With zero based budgeting, every department function is reviewed thoroughly.