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Seriously, adulting is wild.
Between rent, groceries, the credit card you forgot you used, and that little treat-yourself latte (you earned it, don’t even argue), it’s no wonder your paycheck disappears faster than your patience on a Monday.
But what if I told you there’s a way to manage your money without feeling broke, restricted, or confused all the time?
Welcome to the budgeting method that actually makes sense: the zero-based budget.
It’s simple, it’s flexible, and it’ll help you tell your money exactly where to go—so it stops ghosting your bank account halfway through the month.
What is a Zero-Based Budget?
A zero-based budget is when you assign every single dollar of your income to a job until there’s literally zero left sitting around.
Important: That doesn’t mean you’re spending all your money. It means you’re telling it where to go, whether that’s bills, savings, debt payments, groceries, or fun stuff.
If you bring in $2,733.50 this month, then you’re going to assign exactly $2,733.50 across all your categories. No “leftover” cash to disappear into your next Target or Amazon haul.
Why Choose a Zero-Based Budget?
Great question, mama.
Here’s why the zero-based budget hits different:
- It keeps you intentional. Every dollar has a purpose—no more mindless spending or “how did this happen” moments.
- It adapts to real life. Got an unexpected expense or surprise income? Just shift your categories.
- It helps you reach goals faster. Debt payoff, savings, vacation fund? Done, tracked, on purpose.
- It’s not just for finance nerds. If I can do it, you can too—and no, you don’t need a 12-tab spreadsheet.
If you’re living paycheck to paycheck or constantly feeling like your money has a mind of its own, this method is about to change everything.
How to Set Up a Zero-Based Budget: Step-by-Step
Let’s walk through this using an example income of $2,733.50—because we’re not using rounded influencer numbers over here. This is real life.
Step 1: Calculate Your Monthly Income
This is what actually hits your account after taxes, not what your boss claims on paper. Include:
- Paychecks
- Side hustle income
- Child support
- Any other cash coming in
For this example, your take-home income = $2,733.50
Step 2: List Your Expenses
Break them into three groups:
- Fixed Expenses – rent, insurance, car payment
- Variable Expenses – groceries, gas, eating out, Target runs
- Financial Goals – savings, debt payments, emergency fund
Yes, savings and debt payoff count as expenses in a zero-based budget. You’re assigning those dollars, remember?
Here’s an example breakdown for our $2,733.50 income:
| Category | Amount |
|---|---|
| Rent | $1,568.33 |
| Utilities | $150.00 |
| Groceries | $300.00 |
| Transportation (Gas) | $120.00 |
| Phone Bill | $50.00 |
| Internet | $60.00 |
| Gym Membership | $30.00 |
| Entertainment | $100.00 |
| Savings | $200.00 |
| Emergency Fund | $100.00 |
| Debt Payments | $50.00 |
| Miscellaneous | $5.17 |
Step 3: Assign Every Dollar a Job
Now go through and start assigning amounts to each category until your total income minus expenses equals $0.00.
- Income: $2,733.50
- Total Expenses: $2,733.50
- Remaining: $0.00
Boom. Budget balanced. Every dollar has a job—even the random $5.17 you would’ve accidentally spent on juice and chips and a random iTunes charge.
Step 4: Track Your Spending
You can use:
- Budgeting apps like EveryDollar, YNAB, or GoodBudget
- A printable planner (I have a good one in my shop!)
- Google Sheets
- Or literally a notebook (if that’s your thing)
Whatever you choose, just track. Knowledge equals power = money that behaves.
Step 5: Review and Adjust
Life changes.
Grocery prices spike.
You forget about that birthday dinner.
It happens.
At the end of each month:
- Look at what went well
- See where you overspent
- Adjust for the next round
This isn’t about perfection—it’s about staying engaged with your money so it stops running the show.
Tips for Crushing Your Zero-Based Budget
- Start small: Focus on your big categories: rent, groceries, gas, savings. Nail those, then get more detailed as you go.
- Use tools: YNAB and EveryDollar are zero-based budget GOALS. They walk you through setup, automate tracking, and make it easier to stay consistent.
- Involve your squad: Got a partner or roommate? Don’t budget in a vacuum. Talk about the plan so you’re not constantly unaligned on spending.
- Celebrate wins: Paid off a credit card? Saved $100? Didn’t go over budget for the first time? THAT’S A WIN. Celebrate it. It keeps you going.
Common Challenges (and How to Beat Them)
Budgeting isn’t always cute. But you’re not alone in the chaos.
- Irregular income
Use your lowest expected income to build your base budget. When you earn more, throw the extra into savings, debt, or sinking funds. - Overspending
Meal plan. Grocery list. No-scroll weekends. Even small habits will help you rein it in without feeling deprived. - Staying consistent
Set a weekly “money date.” I mean it. 15 minutes, once a week. Sit at the table, grab your café con leche, check your numbers. That’s it.
Final thoughts
The first time I got my budget to hit exactly $0.00? I felt like a budgeting goddess. Because I knew where every dollar went. I didn’t feel guilty or confused but I felt in control.
And that’s the magic of a zero-based budget.
It’s not about restriction. It’s about being intentional with your money, your goals, your future.
You’re not bad with money, you just need a plan that actually makes sense.
Have you tried zero-based budgeting before?
What’s been the hardest part—or the biggest win?
eady to get started for real?
If you’re feeling this post and thinking, “Okay, I wanna try this but I need an actual system I’ll use,” check out my printable budget planners—it’s simple, affordable, and built for real-life moms who don’t have time for 47-tab spreadsheets.
Whether you’re saving, paying off debt, or just trying to stop feeling broke halfway through the month—this planner will help you actually stick to your budget. Sign up below to try it out!
