The Zero-Based Budget

The zero-based budget has really been a game changer for us. Most people wouldn’t have been able to fathom how much you can accomplish just be creating and sticking to this type of budget.   

What is the zero-based budget?

This is a budgeting system where you tell every dollar or penny for that matter where to go.  With zero-based budgeting, every dollar you make intentionally goes to something useful.  Simply put, you start your budget off fresh with zero, calculate your income, your expenses, and then determine how every dollar will be spent. 

Does this budgeting method actually work?

This budgeting method is especially helpful when you are living paycheck to paycheck, trying to get out of debt, or have a tendency to overspend.  With this budgeting method, you tell every dollar even your fun money, eating out money, shopping money or spending money how it will be spent.

Many people don’t put much effort or energy into creating a budget.  Budgets to most people mean sacrificing, no fun, and eating beans and rice for every meal.  What they don’t realize is that a spending plan is the fastest way to wherever you want to go.  Simply by taking control of your money you can get out of debt or achieve any financial goal you set. 

Does your paycheck disappear too quickly?

Have you ever wondered how you paycheck disappeared so quickly? We have been there too and realized that a lot of expenses were just not being accounted for.  Especially in situations where it was small amount here and small amount there, we just weren’t tracking them.   For us this resulted in debt being accrued that could have been avoided. 

How has the budgeting method helped us?

We have been able to pay off several credit cards to the tune of about $15,000 in the last two years.  In addition, we have been able to do several updates and renovations to our home.  We have been able to budget and pay cash for large expenses to avoid charging them.  We are on a path to be 100% consumer debt free by the end of 2019.  With hard work, dedication, and budgeting we will be able to achieve this goal.

How can I create a zero-based budget?

If you are a paper and pen kind of person you can create a handwritten budget.  There are also spreadsheets you can purchase or create to track these expenses on the computer.  In addition, there are also apps you can download onto your mobile device to help you create a zero based budget and track expenses. 

Here is a link for more information about the EveryDollar Budgeting App https://www.everydollar.com/budget-app. There is a free version of this app available for use.

We’d love to hear what you think about this post. How do you budget your finances each month?  What has worked well for you?  Let us know in the comments below. Thank you for visiting Sunup to Sundown! We’ll be back soon with another recipe or update regarding our garden or our journey to become more self-reliant. Please subscribe, like or share this post with others who could benefit from it.