What is a Zero Based Budget?

Zero-Based Budget: Assign every dollar of your income to a specific category, such as expenses, savings, or debt repayment, until there is zero left unallocated. This ensures every dollar has a purpose and encourages intentional spending.

Example:

• • Example: If your monthly income is $3,000, your budget might look like this:

    • Rent: $1,200

    • Groceries: $400

    • Utilities: $200

    • Transportation: $200

    • Entertainment: $150

    • Savings: $500

    • Debt Repayment: $350

    • Total: $3,000