Focus your spending on your goals and prioritiesīecoming More Aware of Your Spending HabitsĪfter years of using a zero based budgeting template, I can tell you with pretty good accuracy how much money we spend EVERY, SINGLE, MONTH on almost all of our expenses.Advantages of Zero Based Budgetingģ of the most important benefits I see with a zero based budget are: This helps you intentionally track all of your money, set aside money for your goals and priorities, and know exactly how much money is spent on each of your budget categories. If you’re unsure, think of it like this – if it’s not income, treat it like an expense. In zero based budgeting, ALL of these things are treated as an expense. Of course there are the obvious expenses – bills, debt payments, car insurance, groceries, clothes, daycare, pet food, date nights, etcĮxpenses also include all of the following: What counts as an expense in zero based budgeting? I feel like income is pretty self explanatory, so I won’t keep kicking a dead horse.īut expenses can encompass a lot, so let’s dive in a little deeper. In a zero based budget, income is any money you make or that comes into your bank accounts during a month. If you already know all about zero based budgeting and are just here for a sweet, easy to use zero based budgeting template, click here to get an annual budget spreadsheet or here for a monthly budget spreadsheet. I want to break this down a little more and define income and expenses more clearly. This formula should be true every single month that you use a zero based budget. When you use a zero based budgeting template, the basic formula is: In other words, you track what you do with every dollar. The basic idea with a zero based budget is to give every dollar you make a job or responsibility. How to Create a Zero Based Budgeting Template
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |