Today’s world is the world of finance and everyone is aware of the fact that it is how much troublesome to live a life without finance. So, is the case with any organization, finance is the lifeblood for any organization. It is very unfair to teach such an important subject mainly in professional courses like CA, CS, CWA, etc. or in bachelor degree courses like BBA, etc. But the traces of this subject could be found from the time we are born. We regularly take the decisions pertaining to finance in our daily lives. There are many decisions in our life for which we apply Capital Budgeting knowingly or unknowingly. Whenever we make any plan for trip or move outside the house we take into consideration the amount that we may require so here we are applying budgeting as a tool of financial management.