147 | Real-Life Budgeting: A Hands-On Guide to Creating a Zero-Based Budget

⁠⁠⁠Book a free 20 minute financial coaching session with us!⁠⁠⁠⁠⁠⁠⁠ ⁠ Today, we're diving deep into the world of budgeting and answering a burning question: What is zero-based budgeting? We received a great question from our Facebook group. Someone asked, "What is zero-based budgeting, and how do I do it?" This inspired us to break it down and make budgeting accessible to all. 📊 Setting the Stage with Our Budgeting Tool: - We use an amazing budget spreadsheet, and you can get it too (with a discount code) if you're interested. - It's designed to be user-friendly with clean fonts and clear sections. 💰 Step 1: Understanding Your Income: - Start by inputting your income, the money you're bringing in. - Every dollar is your soldier, and you're the commander. 🧾 Step 2: Debt Minimum Payments: - Now, let's tackle your debts. - Minimum payments are non-negotiable; you owe them. - Subtract your minimum debt payments from your total income. 💡 Step 3: Budget Categories: - Next up are your bills and expenses. - These include essentials like utilities, groceries, subscriptions, and insurance. - Subtract these from your remaining budget. 🍔 Step 4: Discretionary Spending: - Here's where you decide what truly matters. - Dining out, entertainment, pocket money – you choose how to spend. - Allocate funds to these categories wisely. 💼 Step 5: Savings (or Extra Debt Payment): - If your priority is paying off debt, allocate the remaining money to debt payments. - In our example, we have some savings goals. - Set aside money for planned expenses, like travel or gifts. 🔄 Step 6: Getting to Zero: - The magic happens when you get to zero. - Every dollar has a job, and the goal is to assign them all. - If you have any money left, put it towards your financial goals. 💪 Step 7: Be the Supervisor of Your Dollars: - Remember, you're in control. - Make sure every dollar fulfills its job – no extra jobs allowed! 📅 Step 8: Pay Debt Strategically: - When allocating money to debt, split it among your paychecks. - Don't wait until the end of the month; act as soon as you get paid. 🔑 Conclusion: - Zero-based budgeting is all about intention and control. - Plan for everything, be intentional with every dollar, and watch your financial goals come to life. 4 Ways To Connect With Us: 1️⃣ FREE CALL: Book your FREE 20-Minute Financial Coaching Call now! Get personalized advice and start your financial journey ➡︎ https://www.budgetbesties.com/freecall  2️⃣ FACEBOOK: Become part of our Supportive Facebook Group. Connect, share, and learn with others mastering their budget skills ➡︎ https://www.budgetbesties.com/facebook  3️⃣ BUDGET: Grab our Signature Budget Template! It's your key to organizing and optimizing your finances effectively ➡︎ https://budgetbesties.com/budget  4️⃣ COACHING: Ready to dive deep into your finances? Sign up for 1-on-1 or Group Financial Coaching. It’s the accountability and guidance you need to make real progress ➡︎ https://budgetbesties.com/coaching  "I love Shana & Vanessa and this podcast is amazing!" < If that sounds like you, please consider rating and reviewing our show! It helps us to reach more people – just like you – to help them change their financial future. Don’t forget to follow the show so you don’t miss any episodes! And, if you’re feeling really generous, we’d be SO honored if you would share this podcast with someone.  Click here to view our privacy policy. This description may contain affiliate links, meaning we may get a commission at no cost to you if you click & purchase!