Following up from the above, once money comes in, set up some automatic transfers or put some cash aside for YOU. Paying yourself first ensures that you have the financial security to make future-you very happy. Even small amounts will grow into something larger, which can eventually pay for that vacation, buy your dream car Or maybe it helps you buy a house one day? if anyone deserves your hard earned cash, it’s you.

Budgeting to zero means that when you create your budget, your income minus your expenses add up to zero. Income – expenses = $0

Budgeting to zero gives you financial clarity, you give every dollar you earn a job, even if that job is savings or an extra loan payment. 

Budgeting to zero doesn’t mean you spend every dollar you earn. Neither does it mean that you’re stuck with your categories for the month. On the contrary, it is a great method to start a savings program by working your savings into your budget and to keep that budget flexible so it can change with whatever ball life throws at you.

A common budget pitfall is when you use your budget as an expense tracker alone but you do not let it influence your spending habits.

Check your budget before you pull out that debit card.

On some days looking through your budget before you spend, you’ll get a resounding YES to spend that money, and other times you’ll get a NOT YET in response, and on others, you’ll realize that a new pair of jeans just wasn’t quite as important as your passing urge would have you believe. Think of your budget as an ever-present accountability partner.