Answer
What is a zero-based budget?
A zero-based budget gives every dollar of take-home pay a job (bills, groceries, savings, debt, fun) until income minus everything you’ve assigned equals $0 left to assign.
A worked example
| Line | Amount |
|---|---|
| Rent | $1,700 |
| Utilities and phone | $300 |
| Groceries | $900 |
| Transport | $450 |
| Insurance | $250 |
| Debt payments | $400 |
| Childcare and kids | $300 |
| Savings | $400 |
| Fun and eating out | $200 |
| Everything else | $100 |
| Left to assign | $0 |
How to start
- Write down this month’s take-home pay.
- List fixed bills, then variable spending, then savings and debt goals.
- Adjust until the total equals your income.
- Track spending during the month and move money between lines when plans change.
More questions
Does zero-based mean spending everything?
No: savings and extra debt payments are lines in the budget, so $0 left means every dollar is planned, not spent.
Zero-based or 50/30/20?
Zero-based is more detailed; 50/30/20 is quicker. Our budget calculator does both.
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