How to Budget Using  Zero-Based Budgeting

Budgeting is not an easy thing. Like most people, you want to make managing money an afterthought. You know the amount of money you have, and it can be spent. Making budgets takes time, thinking, and even cutting things you may enjoy. 

Discovering a zero-based budget solved all those problems. It is about giving every dollar a job. You are no longer guessing how much money is coming in, but you know how much you have and give each dollar a job. 



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What is Zero-Based Budgeting?

Zero-based budgeting is taking all of your money and putting it towards expenditures, savings, and debt. At the end of the month, your income and expenses should equal out zero. 

How is Zero-Based Budgeting Different From Traditional Budgeting?

One of the most significant differences between Zero-Based Budgeting and Traditional Budgeting is that you live off last month’s income. You know how much money you made last month, and that is the amount of money you have to use for the next month. 

How to Make a Zero-Based Budget:

1. Track Your Spending

This is something that is often talked about when budgeting. We must track our spendings, and this is a way we can figure out what we are spending money on. All you have to do is write down everything that you spend money on. 


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Throughout the month, you may be working different side hustles, your main job that is usually 9-5, and possibly bring in other income from passive income streams. You will need to know how much income that you have coming in regularly. 

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2. Know Your Monthly Income

3. Create Budget Categories

It is time to start splitting up your expenses into categories. We know that this budget must end with zero money left over at the end of the month. With knowing our income and spending, we can finally set up what is needed. 

Your budget has to be flexible too. Some months the utilities could be higher due to different weather, and sometimes you will not be making as much income. Being able to plan for these things allows room to breathe and less stress while budgeting. 

4. Be Flexible With the Budget

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