You’ll often hear us say, “Give every dollar a name.” This principle comes to life through a zero-based budget. The goal of a zero-based budget is simple: ensure your total income minus your total expenses equals zero.
Formula:
Income - Expenses = $0
For example, if you’ve covered all your expenses for the month and have $500 left over, your budget isn’t finished yet. That extra $500 needs a specific purpose. Whether it’s paying off debt, boosting your savings, or funding a financial goal, assign every dollar a job. This ensures your money works for you, not the other way around.
Take control of your finances by deciding where your money goes—instead of wondering where it went!
For more guidance, check out this detailed article: How to Create a Zero-Based Budget.