Tag / living paycheck to paycheck

Money Management

The Best Budget to Keep You From Living Paycheck to Paycheck

I have tried many budgets to try to get me to stick to one without much luck. I always made excuses to where the money for a purchase would come from, like I worked some overtime this week so I can afford this. Wrong!! Yea I could buy it but I could make better use of my money.

I then discovered the Zero Based Budget, and my life changed forever. Not really, but it did change my opinion on budgeting. A Zero Based Budget is basically assigning all of your income to a category to make the remaining amount equal zero. What I do is just make a base income, which would be the minimum I would take home a month not including overtime because that’s never guaranteed. So here’s my sample budget:

Zero Based Budget

Each category I based to projected portion on past months and made it the highest possible number it could be without being overtly wrong. As the month goes by on a separate sheet you just jot down the expenses that go into variable categories like entertainment or eating out. Always remember to plan for special occasions for instance, if you’re going to a birthday dinner or something, be sure to adjust your budget accordingly.

At the end of the month all you do is add everything up and then all of the extra money can go towards your financial goals/savings. I think this helps because you can actually see where your money is going vs. where you think its going. Also, because you get to see the savings you made at the end of the month by watching your money.

Do you have any budgeting tips that work for you?