Financial planning or budget making is often easier said than done. This generally involves analyzing your current financial position and predicting short term and long term needs. Putting aside money for savings, investing or debt servicing could be a better option. But income and expenditure rarely balance and the budget is often stretched. You could find yourself short of cash at the end of each month. Income is usually preset, unlike expenditures which usually run out of control. When expenditure is higher than earnings, you rely on additional source to fill the gap in spending. Definitely a budget acts as a guideline on how to control expenditure as well as spending to avoid the debt trap. It can also help you set and attain financial goals. Monthly expenditures can be grouped in to two main categories i.e fixed and variable expenditures. Some expenditure hardly vary each month, for instance things like house rent, while other expenses cannot be predetermined before the bill is received at the end of the month. In any budgeting process, the fixed expenditures would come top in priority and the balance would be distributed amongst variable expenditures.