If you want to have success with your money, you need to have a budget.  No matter what your current situation is – no savings, tons of debt, chronic impulse shopping, millionaire – starting today is the only way to change.  Most people think the goal of budgeting is to have money left over at the end of the month. I was one of those people too!

BUT, if you allow yourself to have money leftover at the end of the month, chances are, you will spend it on something unnecessary.  That extra money can also make you feel like you have more than what you really do so you may even end up going completely over budget by the end of the month.  Having money that is unaccounted for or doesn’t have a designated purpose will set you up for failure.

This is where a zero-based budget will provide you with the format for success!

What is a Zero-Based Budget?

A Zero-Based Budget is where your total income for the month minus your total expenses for the month equals zero.  Seems simple doesn’t it? What this means is, you have to make sure every single dollar for the month is going where you have decided it needs to go.  There will be no “leftover” or “extra” money for the month.

If you have all of your expenses budgeted for and find you still have $300 leftover; you need to find a place to spend that $300.  This is where you ensure every dollar has a particular purpose within your budget.  Whether that $300 goes to savings, debt, vacation or something else, it HAS to go somewhere.  If you don’t give it a purpose, then you don’t know where your money is going.  If you aren’t in control of your money, then you are going to lose it.

Use the FREE Basic Budget Setup Sheets to get started!  Sign up below to gain instant access!

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Why does a Zero-Based Budget work?

The Zero-Based budget is a plan.  Oh, my favorite word; PLAN.  A plan is a decision for achieving something or an intention of future steps.  If you don’t have a plan; you don’t know where you are going. This definitely applies to your money.  If you don’t have a plan for your money, then your money won’t know where to go to help you achieve your goals.

By telling every single dollar where to go, you will be able to achieve your goals of saving more, paying off debt and living the life you have always dreamed of.  My husband and I have used this budgeting system to pay off $40,000 of debt and cash flow $35,000 for two babies in the past two years.

If you think having a budget is going to be restricting, trust me, it won’t be.  You are completely in control of where your money goes.  Instead of thinking a budget will restrict you and keep you from doing what you want, realize it will let you do what you want guilt-free.  You won’t be stressing about if you have the money for the new shoes you are about to purchase.  They will be budgeted for (if that’s what you’ve decided to use your money for), so you can enjoy them with no worry about how you are going to afford them.

A Zero-Based budget means you have no “leftover” money at the end of the month.  You will give every single dollar a purpose in your budget to reach your financial goals (debt, savings, vacation).  A Zero-Based Budget will work for you because it is a plan.  If you are planning with your money, it will do what you need it to.

Related post: How To Set Up A Zero-Based Budget

Figure out your budget categories to get started setting up your zero-based budget using our FREE Budget Categories Checklist!  Sign up below!

Don’t waste another day.  Start Zero-Based budgeting so you can take control of your money.