By Katherine Lordi - A budgeting plan that goes by the following math formula: Income - Expenses = 0.
The Zero-Based Budget encourages you to give every dollar of your monthly income a purpose - expenses, savings, or debt payments.
Income minus your expenses equals zero by the end of the month.
1. Write down your monthly income.
2. Write down your monthly expenses.
3. Write down your seasonal expenses.
4. Subtract your income from your expenses to equal zero.
5. Track your spending throughout the month.
A Law School Grad named Cindy graduated with over $200,000 of student loan debt and $13,000 of credit card debt. Cindy maintained a sheet that listed her income, savings, expenses, and debt. Cindy allocated every dollar she earned from her job to one of these three categories using a ZBB!
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