Blogging My Way Through Debt

 - Blogging My Way Through Debt

Zero-Balance Budget

I mentioned in this week’s goals that I am trying a zero-balance budget this month/year.  When I first heard the words “zero-balance budget,” I have to tell you the sound scared me.  I didn’t take the time to find out what that meant.  I just know ZERO does not sound good!

I couldn’t be more wrong!  Here is a great link on Dave Ramsey’s website that discusses a zero-based budget.  In short; if after subtracting outgo from income you have a couple hundred left over, you are not done and need to tell that couple hundred dollars where to go.

I always just paid extra towards debt with the amount of money I was comfortable with.  I realized that I do not have to make my account equal zero just my income/outgo for this month!  THAT, I can deal with!  I am so excited to see how much we can throw at our mortgage debt this month!!

Do you use a zero-balance budget? 

Category: Saving Money
  • SuburbanFinance says:

    I do a zero balance budget too, putting anything that isn’t expenses into savings. Maybe next year after the wedding and honeymoon we can throw the rest at our mortgage.

    January 9, 2014 at 4:54 am
  • mrsdebtfighter says:

    Suburban Finance, both sound like excellent places to put your extra money towards!! :)

    January 9, 2014 at 12:25 pm
  • robert @ moneybulldog says:

    This is definitely a case of something not being as scary as it first sounds. I reckon that there are plenty of other financial phrases which put people off before they even know what they really mean

    January 9, 2014 at 4:26 pm
  • mrsdebtfighter says:

    Robert, I agree! Once I heard the term enough times on different blogs, I finally did a Google search. I’m glad I did! :)

    January 9, 2014 at 6:30 pm
  • Pingback/Trackback

    January Budget Update |

Your email address will not be published. Required fields are marked *