How zero-based budgeting works here

Zero-based budgeting is a simple rule: planned income minus planned assignments equals zero. Here is how that looks in practice.

1. 1

   Add your income

   Start with what you actually bring home this month. That number is the pool you will assign.

2. 2

   Give every dollar a job

   Split income into categories: needs, goals, debt, fun. Keep adjusting until income minus assignments equals zero.

3. 3

   Track as you go

   When you spend, your category balances show what is left. Change the plan when life throws a curveball.

New to the idea? Read our beginner guide on the blog.