What Is a Zero-Based Budget?

A zero-based budget is when your income minus your expenses equals zero. That means you’re giving every single dollar a job on purpose every month. In this video, money expert Jade Warshaw explains how to create your own zero-based budget.

💵 How to Create a Zero-Based Budget:
1. List your monthly income.
Start with everything you bring in—your paycheck, side hustle income, and any other earnings. Know exactly how much you’re working with.

2. List your expenses.
Give priority to your essentials—giving, savings, and the basics (food, utilities, shelter, transportation). But don’t forget the fun stuff! Include entertainment, dining out, and sinking funds for things like car repairs or vacations.

3. Subtract your income from expenses.
Now, do the math. If your expenses are higher than your income, you’ve got two choices—cut costs or find ways to earn more. If you’ve got extra income, use it to crush debt or build up your emergency savings. Keep tweaking until you hit zero!


💵 Try EveryDollar for Free: https://www.ramseysolutions.com/ramse...

🧐 Learn More About Zero-Based Budgeting: https://www.ramseysolutions.com/budge...

📺 Watch Next: EveryDollar Step-by-Step Budget Tutorial

📲 Follow Jade Warshaw
Instagram: @jadewarshaw
TikTok: @jadewarshaw
Facebook: @jadewarshawpersonality
X: @jadewarshaw

#EveryDollar #BudgetingTips #ZeroBasedBudget