Monday, March 14, 2022

Zero-based budgeting method involves allocating all of your income to specific categories so your income minus your expenses equal zero.


In other words, every dollar that comes in has a purpose. This prevents you from spending on unnecessary things.


You allocate your money to your living expenses, savings, and debt payments. You can also plan for irregular expenses by adding a miscellaneous category.


This type of budget is very flexible. You can create a new zero-based budget around your needs each month and make adjustments as necessary.