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Glossary · budgeting

What is Zero-based budget?

A budgeting method where every dollar of income is assigned a job before the month begins.

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In a zero-based budget, income minus every category (bills, groceries, savings, debt, fun money) equals zero. Nothing is unassigned. Popular in YNAB-style methodologies.

It's more work than percentage-based rules but gives the most visibility and control. Especially effective for irregular incomes and households trying to escape paycheque-to-paycheque cycles.

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Frequently asked questions

Do I redo it every month?

Yes — that's the point. Life changes month to month, and the plan adapts with it.

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