Zero Dollar Budget…sounds so scary, doesn’t it, but it really is just knowing how to tell Every Dollar in Your Budget Where to Go . In reality, budgeting just kinda sucks?? Budgeting is not easy and everyday temptations make saving money hard. One way to make sure your budget works is to do a zero-based budget, which means you tell every dollar of your money where to go. (I have included links to some great products that I have bought on my own and we love. You can buy them as well through my online sales links)
Now a zero dollar budget, this doesn’t mean you can’t have fun, it just means you have to budget for that fun. As my kids and I are restarting on our own it is somewhere we are focusing on a family to be self-conscious about where we are spending our money, and we are following Dave Ramsey’s financial advice for our lives.
The Total Money Makeover: Classic Edition: A Proven Plan for Financial FitnessThe Financial Peace Planner: A Step-by-Step Guide to Restoring Your Family’s Financial HealthSmart Money Smart Kids: Raising the Next Generation to Win with Money
Tips For How to Zero Dollar Budget:
Round Up Your Income: Are you familiar with how much money your family brings home on a weekly basis? Don’t worry about what the gross income is, just focus on your bring home amount. If your income changes often track and base it off of what you the smallest amount you bring home.
Write it Down: Your budget will only be successful if you take the time to write it down. To be successful in giving every dollar a home in your budget, you have to know what’s coming in on a weekly or monthly basis. After you know that, start writing down where each dollar will go.
Be Realistic: A lot of times people underestimate their budget. For example- In their head, they think they only spend $100 on groceries, but the bank account says they spend $150 a week. Make sure you’re realistic in what you will spend in your budget. Keep a notebook in your purse or car to jot down everything!
Save Receipts: You may not even know that you aren’t budgeting for every dollar, but saving your receipts can help you remedy that. It’s nice to have a little envelope to place all of your receipts in, this will help you see what you spend. Keeping a holder full of receipts will also be nice come tax time!
Always Use Cash:
There’s really no way around budgeting for every dollar if you don’t use cash. When you use a credit card or even a debit card, it’s tempting to use more money than you originally thought you would or could. Putting cash and having your exact budget amount written down is a surefire way to stay on track with that zero-based budget. Dave Ramseys envelope system is a great way to keep track of your money.
Your Bank Account Should Say Zero: After you have taken all of these tips into account, don’t panic, but your bank account should have a big fat zero! It’s scary to think that you have no “money” in your account, but in reality, you just have all of your money accounted for every dollar.
Getting to a zero-based budget takes some practice. Here is a simple step by step guide to getting to that zero-based budget in order to tell every dollar where to go.
- Make a list of your income.
- Write down what your expenses are for each month.
- Write down what you will be saving each month.
- Tell every dollar in your budget where to go. *That might be paying off a bill or putting the extra into a savings account.*
- Use cash when you can to help you stay on target with your budget.
Using a Zero Dollar Budget budget will take some adjustment. If you get this down during your first week of zero-based budgeting, you are a rock star. Even if it takes you several weeks to tell every dollar in your budget where to go, you are still a rock star.
How do you budget? Have you done a Zero Dollar Budget before?