How to Make A Budget | Zero-Based Budget Explained

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How to Make A Budget | Zero Sum Budget Explained.

Today, my friends, we look at what many consider to be the best budget of them all. It is known as the zero-based budget or the zero sum budget and has been popularized by Dave Ramsey and his EveryDollar app.

This budget forces you to take an in-depth look at your money. The ultimate goal of this budgeting method is to give every dollar a job to do for the month before it even begins (which helps to avoid waste). Today I'm going to show you how to use the zero-based budget.

If you enjoyed this video you can check out some of my other videos at the links below!

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Please watch: "The Budget That Pays You First | Reverse Budget Explained | Budgeting For Beginners"
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[erinkoks]

This was so insightful! I've recently started living independently and have no finance experience, since my parents never planned ahead and ended up barerly living from pay-check-to-pay-check. It seems so obvious once you explained it, but honestly it's helping me plan ahead and making some better, much needed, life desicions. Thank you for taking the time to make this video!

[scholas_creative_space]

You explain so well! I understood the lesson so clearly. Thanks

[POODYWORLD]

This was the best simple video I ever saw thanks for getting to the point

[BabyandLittleGuy]

Hi, Daniel!
I really enjoyed your video 😊
It was very informative AND entertaining - the best combination! Your narration and graphics are clearly and professionally presented. You make excellent, concise points. I love talking, yet when it comes to sharing information, FACTS AND DATA are most important. So many YouTube videos are "good." Yours was EXCELLENT.
I look forward to watching your Friday videos every week! The rest, I'll study and learn from during the week. You have a grateful NEW subscriber!! 😀

[allenares]

I always thought this was the normal -writing it down physically

[financeandfitness]

Great video! I am making a video breaking down different budgeting strategies soon. I will link this video!

[Budgetmeright]

This is one of the first videos I have watched when I started my budgeting journey! Thanks for sharing your knowledge 🙂

[freakishchick]

Thank you explaining it so clearly. Very helpful

[elpida]

my teacher is making us watch this for online school

[mleet]

I've never been able to get a great budget written down. 2 week pay checks don't fit in 30/31 day months well and as you mentioned my paychecks do vary, drastically. ....and some utility bills are every other month. So I haven't been able to KNOW what my income will be before I get it. I have an estimate, but usually off by 2-400 dollars.

[Ddeath.Eaterr]

Thanks for the simple explanation and the graphics really help.

[andrewb]

Yep, this is what I do. Didn't realize it had a name. Thanks for yet another great video.

[hemantparakh]

I would like to make my four walls of The Zero Based Budget go towards Passive Income Generation and Automatic Income Generation kindly suggest a suitable scheme

[MaryMkrtchyan-lmhc]

I get my income throughout the month and do not have the starting amount at the beginning month. How would I be able to use this budget method to help me not miss any payments, if the month prior I did not prepare?

[darkexcalibur]

I can see why this would be very helpful to some people but this would get me into some trouble lol. No zero based budget for me.

[MsChambers]

Why are subtitles/closed captioning not available on your videos?

[slinkydonkey]

I assume you need to divide your yearly expenses by 12 before you add them to your monthly expenses?

[MaEvProductions]

Hey really good video, I'm just confused... what do you mean by Giving in terms of the income monthly? Like giving your money to people?

[QTARUBA]

Yes, "The 6 jars" system - T. Harv Eker & The "70/10/10/10" - Jim Rohn...thank you

[richardsanchez]

Why would you increase your spending? Invest or save what's left over.