The Zero-Based Budget Explained

Ever wonder where your money disappears? The zero-based budget makes every dollar accountable—no freeloaders allowed.

Here’s the idea: income minus expenses equals zero. That doesn’t mean you spend it all; it means you’ve told every dollar what to do.

Step 1: Write down your monthly income.Include paychecks, side gigs, and predictable extras.

Step 2: List fixed expenses.Rent, utilities, insurance, debt payments—anything that stays the same.

Step 3: Plan variable expenses.Groceries, gas, entertainment. Be honest—round up.

Step 4: Assign the leftovers.If there’s $250 unclaimed, decide whether it goes to savings or debt payoff. Don’t let it sit idle.

Why people love it:

• You instantly see waste.

• Saving becomes automatic.

• Guilt-free spending—if it’s in the plan, it’s allowed.

Apps like YNAB (You Need A Budget) make it easier, but paper and pen still work. After two or three months, you’ll feel like you got a raise without earning more.