Budgeting Expenses

Creating a Budget

What is zero-based budgeting?

This is a method of budgeting where one accounts for the spending of every dollar of income from all sources. If any one category must be revised upward, another must be revised downward so the effect is zero on the total amount that is spent during the budgeting period. This way, our expenses can never exceed our income if we stick to our budget.

When budgeting for your expenses, have a fixed goal in mind, including income limitations and how much you are trying to set aside for savings.


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