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Use C   strings in file handling
class budget
{
     float balance;
     string due_name,loan_name;              //string objects
     int  year,month;
     float due_pay,loan_given;

     public:
     budget()
     {
          balance=0;
          month=1;
          due_name="NO BODY";              //default values
          loan_name="SAFE";
          year=0;
          balance = 0;
          due_pay=0;
          loan_given=0;
     }
      .
      .
      .
 };

void read_balance()                //PROBLEM AFTER ENTERING THIS FUNCTION
{
     system("cls");
     budget b;
     ifstream f1;
     f1.open("balance.dat",ios::in|ios::binary);
     while(f1.read((char*)&b,sizeof(b)))
     { b.show_data();
     }
     system("cls");
     cout<<"No More Records To Display!!";
     getch();
     f1.close();
}

basic_istream<charT,traits>& read(char_type* s, streamsize n);

// Read with no error checking :-S
istream& budget::read( istream& s )
{
    s.read( (char*)&balance, sizeof(balance) );
    s.read( (char*)&year, sizeof(year) );
    s.read( (char*)&month, sizeof(month) );
    s.read( (char*)&due_pay, sizeof(due_pay) );
    s.read( (char*)&loan_given, sizeof(loan_given) );

    size_t length;
    char *tempstr;

    // Read due_name
    s.read( (char*)&length, sizeof(length) );
    tempstr = new char[length];
    s.read( tempstr, length );
    due_name.assign(tempstr, length);
    delete [] tempstr;

    // Read loan_name
    s.read( (char*)&length, sizeof(length) );
    tempstr = new char[length];
    s.read( tempstr, length );
    loan_name.assign(tempstr, length);
    delete [] tempstr;

    return s;
}

ostream& budget::write( ostream& s )
{
    // etc...
}