So what is zero-based budgeting, anyway?

While originally a type of budgeting used by businesses and companies, zero-based budgeting has also shown to be an effective means for budgeting for individuals and households. Zero-based budgeting is a technique in which every dollar earned is allocated to a category - such as savings, spending, or paying off debt. This means your income minus your expenses equals zero. This way, every dollar serves a purpose!

To follow zero-based budgeting, try to get your balance, or "To be Budgeted" amount, to $0.00 at the end of every month.

Zero-based budgeting has been proven to be effective at:

  • Preventing you from spending money you don't have

  • Seeing where your money is actually going

  • Helping you to achieve your most important financial goals

  • Building great money habits to save money and pay off debt

So take control of your budget now and save for college, pay off that credit card, or add to your retirement fund!

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