How to Create a Zero-Based Budget

Zero-based is a method where you allocate every of your to specific expenses, , or investments, leaving you with zero dollars unaccounted for at the end of the month. This article guide you through the steps to create a zero-based .

Step 1: List All Income Sources

Start by listing all your income sources, including your salary, freelance , and any other streams of income.

Step 2: List All Expenses

all your fixed and variable expenses, such as rent, , groceries, and entertainment.

Step 3: Prioritize Expenses

Prioritize your expenses in order of importance. Essentials like rent and utilities should come first.

Step 4: Allocate Income to Expenses

Allocate every dollar of your income to your listed expenses, starting with the highest-priority ones.

Step 5: Adjust as Needed

Throughout the month, adjust your budget as necessary. If you find you've overestimated or underestimated certain expenses, make the necessary changes.

Step 6: Review and Reset

At the end of the month, review your budget and start the process over for the next month, making based on your review.