How to create a zero-based budget

Savings Angel

Does the thought of making a monthly budget and sticking to it make you cringe? It’s not always the easiest thing to do, but money experts say it’s a crucial part of financial literacy.

Consider drafting a zero-based budget. That means justifying or putting a name to every single dollar you earn.

Josh Elledge from savings, recommends creating a budget where every dollar has a job, and each job makes sense in your real life.

“You must set up a budget for you how you really live life, including your goals and priorities right now. A proper, personalized budget never controls you, you control it,” Elledge said.

He says to avoid the mindset that you have to do certain things, it must be financially feasible.

Be honest about how you spend your money and create a budget that aligns with that. Trim where you can, work on changes slowly and remain realistic.

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