What is a zero-based budget?

A zero-based budget, also known as a zero-sum budget, is a budgeting method that involves assigning every dollar of your income to a specific purpose each month. The goal is to ensure that your total income minus your expenses equals zero and that every dollar is accounted for. This means that you’re intentionally planning your spending and saving, and eliminating unplanned spending. When you learn how to budget your money and stick to it you can say goodbye to money stress.

Why should you budget your money?

A zero-based budget is a road map for your money life and is a plan for your money before the month begins. Just like you use a road map to drive to a destination you’ve never been to a monthly zero-based budget helps you reach your money destination as well. A budget is knowing where you are going and how to get there. It is the pillar of financial control.

When should you budget your money?

A personal budget should be made monthly before the month begins.

What is money stress?

Money stress originates from not knowing where your money is, where it is going, how much you have, and whether or not you’ll have enough when you need it. A monthly zero-based budget helps you know how much income you have, exactly what your expenses are, and the exact margin you have to leverage toward reducing debt or saving for priorities. Learn how to budget your income & say goodbye to money stress.

Is budgeting hard?

The hardest part of learning how to budget your money is at the beginning. Budgeting requires you to face the facts and the true numbers and it can be challenging to set spending limits, especially if you are not used to it.  However, a monthly zero-based budget is the pillar of financial control. It helps you reach your goals, buy a home, and send your kids to college. Any serious effort to win with money must begin with a monthly zero-based budget. The first couple of months are spent learning about your current spending habits and “dialing in” your budget. By the third or fourth month, you will have ironed out most of the rough places. You’ll be a pro in no time.