As early as 1990, some organizations in countries like the USA and Australia implemented this new budgeting program to replace the old and known method of budgeting, the "line item budgeting." Activity based budgeting is a method of budgeting in which activities that incur costs in each function of an organization are established and relationships are defined between activities. This type of retirees relies solely on their social security pension and, worse, if they weren't an active contributor to the social security system, will have to submit their fates to homes for the aged. No one wants to be listed in this type of retirees. We all want to spend our retirement traveling around the world, relaxing on a cruise, or simply go fishing on a lake which is just a few meters away from our own comfy cottage. In effect, they are dollars-and-cents representations of plans for the production of meaningful results during the upcoming year or period of time. A budget keeps track of money coming in and money going out. Most often than not, people pay utility bills and buy luxurious items before they a realization that there is no room to save money for other necessary expenses anymore. Budgeting software companies offer technical support and promises that mathematical problems about budgeting are a thing of the past. Budgeting software empowers individuals and organizations to plan, analyze and manage money in real time for better performance. You will learn that financial freedom does not come from having a large income but by managing your hard earned money well. Whether you use sophisticated personal finance software or a couple of pieces of paper and a pencil, the important thing is that you get on the road to financial freedom by starting a budget today. Whatever budgeting tool you choose for your financial planning, the most important thing is that you are planning for your financial future. The total cost of eating food at home is definitely less than you were spending fancy meals at a restaurant. Saving for the future is a constant and sweet reward of budgeting. In budgeting, you will be able to build your savings. You can use payroll deductions and bonus incomes, looking around for the best interest rates, and improving your spending habits.