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Zero Balance Budget

By May 15, 2017Uncategorized

Having a Zero Balance Budget is another concept that once I started using that I truly got the benefits of my budgeting.

I once saw this method and thought it didn’t work, mainly because I thought for the mindset that if it was zero that it wouldn’t work for me…

but after a while I did more and more research on this method of budgeting and started to see the benefits and when I finally tried it I truly realised it worked!!!

What is a Zero Balance Budget?

 A zero balanced budget is where all of your expenses equal your income. Therefore, there isn’t any remainder leftover when you minus your expenses from your income.

Now don’t panic it doesn’t mean that you ‘spend’ all of your income, it just means that you allocate all of your income to create a zero balance.

This means that every single dollar is allocated in your budget.


Why do you want to do this? 
Well when I didn’t have a zero balanced budget I would minus my income from my expenses and say have $500 leftover this was to allocate to repayment of debts, savings and some general spending money. But what would actually happen is I would always go over.

The reason I would go over is because I wouldn’t actually keep track of that $500, so instead I would end up spending $600 and getting myself further into debt when I had a ‘budget’.


Lets assume your ‘leftover*’ when you first calculate your budget is $500 you are wanting to put extra money off your debt and to your emergency savings.  So you then allocate as you wish so say…$300 to Debt and then your $200 to your emergency fund. Therefore when you then re-calculate your budget the ‘leftover’ is ZERO!

When I started the zero balanced budget I would then know how much would go to savings, debt repayment and how much I would have for general spending.

That’s when I truly stated achieving things with my budget as I was no longer using ‘guessing’.

So try it out and see what happens for you..


Want to know more about the courses Bells Budget Offer? CLICK HERE!


*Leftover is when you minus your income and expenses and you have more income than expenses.

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