Zero-based budgeting

In a zero-based budget, you assign every dollar of income to a category, including savings, until income minus assignments equals zero.

How

1. Start with this month's take-home pay
2. Assign money to bills, then essentials, then savings and goals, then wants
3. Keep going until nothing is unassigned
4. If you overspend in one category, move money from another

Good for

People who like detail and want to know exactly where money goes.

General educational information, not personal financial advice. The Thrift Ledger isn't paid by any bank, lender or budgeting app.