16/10/2022
|| ZERO-BASED BUDGETING ||
Thought it would be a great idea to do another post on what a zero-based budget (ZBB) is as ‘The Budget Planner’ uses a ZBB approach. We LOVE using a ZBB approach and it has been the best thing for our finances! Ever since starting a ZBB we have saved like never before. Have paid off huge amounts of debt, with the snowball method and have finally felt in control of our finances!
Since I haven’t been able to this year due to health issues, budgeting what we have has been fun still. Oh and I also love how it gives you permission to spend without feeling guilty ✌🏽. ZBB is where you minus all your bills, everyday spending, splurge money, debt payments, sinking funds, emergency fund and other savings goals from your income for that pay period.
You should then be left with $0 as you have covered all bases! We also make sure we have some ‘buffer’ money in our account in case we forget to budget for a bill or expense.
In the past we would have all our money sit in our everyday account and pay wave away. Forgetting how much we had, then I’ll trade just to make up for our spending 🤦🏽♀️🤦🏽♀️. But by the end of the week we would be transferring the savings money back into our daily account just to get through till the next pay day, or try focusing so hard with my health issues in the background to make extra money.
Do you use a zero-based budget? ♡
