ZERO-BASED BUDGET

How to Set up a

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Zero-based budget implies that you will assign a name tag on each of your hard-earned pennies and when the month ends, you will have zero pennies left in your hands to spend.

When a month starts, make a note of your expenses under all the headings such as rent, electricity, food, cable and everything else that will make up your expenditures.

Compute Your Monthly Expenses

It is important to ensure that you are prepared for the holidays much in advance. Occasions such as birthdays, anniversaries, and festivals are not surprises and need to be planned in advance.

Compute Your Seasonal Expenses

If you notice that your expenditures are more than your income and your savings are depleting every day, it is time to make some necessary cut backs.

Subtract your Income From Expenses to Get Zero

Even if you do not have a regular source of income, you can make use of zero-based budgeting method. The golden rule here is to center your budget on your minimum income. 

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