What is a zero-based budget and how to make a zero-based budget #budget2023 #financialliteracymonth

A zero-based budget is a simple budgeting technique that can help you take control of your finances. Zero-based budgeting is when your income minus your expenses equals zero.

If you earn $5,000 each month, all the money you use for giving, saving, or spending should add up to $5,000. Each dollar you earn should have a specific job or purpose, so you don't spend money on things you don't really need.

However, it's okay to have some extra money in your bank account for emergencies, but it's important to have a budget so you know where your money is going.

You should keep a small amount of money, like $100-$300, as a buffer just in case.

Here's how it works:

First, you list all of your income for the month. This could include your salary, any side hustle income, and money you receive from other sources.

Next, you list all of your expenses for the month. This includes things like rent or mortgage payments, utility bills, groceries, entertainment expenses, and any other bills you need to pay.

Once you've listed all of your expenses, you subtract them from your income. This will give you a total amount of money that you have left over.

If your expenses are more than your income, you'll need to make some adjustments. This might mean finding ways to cut back on expenses or finding ways to earn more income.

If your income is greater than your expenses, you can allocate the remaining money to savings or other financial goals.

The goal of a zero-based budget is to make sure that every dollar you earn has a specific job or purpose. This can help you stay on track with your finances and avoid overspending. By following a zero-based budget, you can take control of your money and work towards your financial goals. When you make a budget, you stop wondering where your money going and are more intentional!