Why Create a Zero-Based Budget?
- Know exactly where your money goes
- Avoid overspending
- Plan for savings and paying off debt
- Feel confident and in control of your finances
Here's How to Make One in 20 Minutes
Step 1: Calculate Your Monthly Income: 3 minutes
Add up all sources of income:
- Salary
- Side hustles
- Freelance work, etc.
Use what you take home after taxes
Step 2: List Your Monthly Expenses: 7 Minutes
Write down all your expenses, including:
- Fixed bills (rent, utilities, subscriptions)
- Variable expenses (groceries, gas, dining out)
- Savings & Debt payments
- Fun money and miscellaneous costs
Use your bank statements or budgeting template/app to help.
Step 3: Assign Every Dollar a Job: 7 Minutes
If you have money left over, add it to savings or debt payoff. If you’re over budget, find areas to cut back.
Tips for Success
- Track your spending daily to stay on track.
- Use a budgeting app or template
- Be realistic – it’s okay to adjust as you go
- Try not to get discouraged – it can be hard at first
- Celebrate small wins!!
Creating a zero-based budget may sound intimidating, but it’s just a few simple steps – and with this guide, you’ll have it done in 20 minutes! Ready to get started? Open your favorite budgeting tool or grab ours to start budgeting like a pro today!