How I Do My Zero-Based Budget

Hello my friends,

I really didn't expect so many of you to be interested in my zero-based budget process. But the response was overwhelming, so today I show you what I do.

Keep in mind that this is what works for me. It may be very different than what works for you. I love spreadsheets and detailed plans. If that's not your style.....just skip to the next video.

As I mention in the video, I actually took the Dave Ramsey training to become a financial coach. I learned so much about the phycology around why we, as humans, do and think like we do. It was fascinating and I've used those learnings both personally and professionally ever since.

Also, DISCLAIMER: I'm not providing financial advice in this video. Just my opinion and the strategy that has worked for me. OK? Good....let's go!

As always my friends, be kind, be brave, I love you and I'll see you next time.
Adelina

Budget Tools:

You can also find me on Instagram: @myBIGtinyhouselife.
My tiny house builder: Teacup Tiny Homes in Lethbridge, Alberta, Canada

[tanyaauthement]

I used to wake up in the middle of the night worrying about money, and the lack of it when I was younger and married to my first husband. I totally understand why you discovered Dave Ramsey. That has influenced my life for the past 7 1/2 years since I divorced that husband. I have done Dave- ish but I am definitely better off now taking care of my own finances. I am so glad you did this video.

[tinaindina]

thank you for this. First time a have seen someone showing a zero-based budget. I have a couple of observations though.
You divide a month expenses (600$) in to weekly expenses (150$). Taking out 150$ cash to spend every week will have you missing 4 weeks of expenses in a year.
A year is 52 weeks, so 52 divided by 12 (months) is 4, 3 weeks, so each month is 4, 3 weeks. That means, in the example, that the 600$ should be divided by 4, 3 which comes to 140$ per week. If you take out cash every Saturday, then it will be 150$ times 52 weeks 7800$ in a year, whereas in the spreadsheet it comes to 600$ times 12 months which is 7200$. You will then be 600$ short in a year! You have plenty of extra so will not notice this through the year .... probably, but others might.
A question....why not put the money in to savings, paying off debt etc. at the beginning of the month? That way the money is working even more for you. Lesser debt to have interest on, more time invested in stocks etc. When you have the budget (and stick to it) AND have an emergency fund then those extra money is just sitting there a whole month.
Well hopes this makes sense. I have always had an interest in this (even spread sheets, haha) but it's only in the last 5 years that I have really gotten in to it.
Thank you again, and it ended up being a loooong comment here all the way from Denmark.

[Divinevista]

I took a Dave Ramsey University course a decade ago. I wish my sons would show an interest. All in God’s perfect timing!

[johnsantiago]

Zero based budgeting saved my wife and I's finances. Before budgeting, we were deep in debt with barely to no emergency fund and savings. Then in November of 2018, we had the "I'm sick and tired of being sick and tired of being broke" moment. We decided to start budgeting using the Everydollar app and followed Dave Ramsey's baby steps, then after almost 2 years, we paid off all our debt, fully funded our 6-month emergency fund, saved money in all our sinking funds then started saving in our 401k. Praise God for Dave Ramsey's life-changing financial teachings!

[sarahoconnell]

Love my Excel spreadsheet! I knew when I was going to retire (2.5 years ago) that my income would be greatly reduced so I paid off my mortgage and bought out my car lease so I can live within my means and still put aside money for "experiences" rather than "stuff."

[noreenn]

I'm thinking of shifting my grocery money back to cash, thanks for sharing.

[victoriapalmer]

I've always been really good at budgeting not always as nicely displayed as yours sometimes just in a notebook notebook for the year I put even the little things if you schedule a haircut if you have dry cleaning to pick up if you have a repair that needs to be done people don't always think of those things and then their savings repaying portion is gone to those things they didn't think about. I am 100% sure that this should be taught and taught to all of our high school students they should have to pass this with a high grade it is one of the most important things besides knowing how to do a resume and an interview but kids today have no clue and they do not want to be bothered with paperwork or record-keeping record-keeping or budgeting they have no idea how to balance a checkbook or frenchtons they want to buy a car or even a small house they don't think about the other things like repairs insurance, maintenance, and all the bank fees an interest rate she would have something as small as yearly maintenance on your car or maintenance on your save furnace in your house the cost of landscaping monthly they only look at well it's a cheap loan on a car or small house the only wait kids are going to survive these days if they're taught these things and are willing to learn and there should be another class on how to stretch a dollar kids today think money grows on trees😂

[saragilliam]

Absolutely love your take on this. I also do a budget book, but it could use some fine tuning. I am going to re-evaluate these suggestions might work better for me. I also really love you looking at your income as working for you.

[jackievickers]

That was very informative. I too, am a Dave fan! I do the same as you, only on paper. Also, I do sinking funds to save for other expenses like Christmas, summer fun, just anything that only comes up once or twice a year. Sticking to a budget is so freeing and to me makes me feel in control of my life.

[connectingpointss]

I'm starting my life all over again in Canada and Im using the spreadsheet for strict budgeting for myself. This time, I wanna be wise and smart where to put my hard-earned money. I know it's not too late yet as long as I am healthy. Thank God! I appreciate your content and I learn from it. Thank you! Take care always❤

[annsmith]

Thanks, Adelina! I track my expenses every day. For the most part, I use cash and will get a receipt for the transaction so I can add it to my daily tracker and state what the money was spent on -- groceries, pharmacy, etc. I use a Visa card that is linked to my checking account and those purchases are also part of my daily tracking. There is no credit card balance carryover. In addition, I call my bank every morning and I know exactly the amount of money in my checking account....every single day .... and that is on my daily tracking sheet as well. Finally, I know the difference between "needs" and "wants" which means I spend far less. Some days, I spend nothing for the day! Wishing you and Miss Sophie all the best, as always!

[pamelavance]

Not boring.. and brings back how important it is that they bring back home economics to schools... definitely is a necessity

[judyb]

Thank you so much for the video an great advice. I have learnt so much. I put my spendings in a pad. But your way an advice is so much better. Esp the dates that the certain bills come out. Loved your advice again thank you xx

[donnamullins]

Good system but always plan for a rainy day.
Thanks

[paulagamache]

Great video! Thank you for sharing! Dave Ramsey is a good resource, I have listened to all his videos and podcast and practice his teachings. He makes total sense. Sending your video to my girls who I’m constantly telling them to create a budget.

[dianelauren]

This was excellent. I think carrying and using cash for day to day transactions is very wise. It makes sense that when you can see the cash leaving your wallet, you're going to be a lot more judicious in your spending. It's so easy to thoughtlessly swipe a card these days. Thank you for taking the time to make this video.

[barbarab]

Yay for us Virgos and spreadsheets ;-). Really love your channel. So calming.

[sunflowersadie]

You are awesome for doing this for us so quickly..thank you

[lorirugato]

Thank you Adalina for great advice! I started my budget and it's very helpful.

[dinabertrand]

Thank you so much, I love this subject, and I know this is how I will get from the situation I'm in to my own tiny house ❤️