Guides / Budget methods
Zero-based budgeting: give every dollar a job
Plan until "left to assign" reaches zero.
In a zero-based budget, income minus everything you plan (spending, saving, debt) equals zero. It doesn't mean spending everything; savings are part of the plan.
Steps
- Write down this month's expected take-home pay
- List fixed bills
- Add everyday categories
- Add savings and debt payments
- Adjust until income minus the plan equals zero
Who it suits
People who like detail and want to feel in control of every dollar. It takes 20 to 30 minutes each month.
General educational information, not financial advice. The Pennies Budget isn't paid by any company mentioned here.