Give Zero-Sum Budgeting A Try

You might be wondering, what is zero-sum budgeting? This form of budgeting is best for people who have trouble maintaining and staying on track with a budget. 

This strategy of budgeting will keep track of every single dollar you earn is allocated to a specific expense according to CNBC. You should have zero dollars left over since every expense has either been spent or saved at the end of the month. 

To start zero-sum budgeting, calculate your monthly income followed by making a list of all the categories you spend money on including food, activities, transportation, and bills. Once you have your list of categories, assign a spending limit for each one with the goal of having every dollar you bring in is accounted for.  

For example, if you earn $2,500 per month, then you want all the line-item budget to add up to $2,500 leaving you with zero dollars at the end of the month. When utilizing the zero-sum budgeting system, make sure to include debt you want to pay off as well and your savings goals. 

Another example is allocating $1,000 per month for rent,$150 for utilities, $150 for food, $500 for savings, and continue until your entire monthly budget is used up. You should keep a record of your budget either in your calendar, journal, or on a spreadsheet. 

Are you considering using the zero-sum budget system? Share what financial tips you’d like to read below.

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