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Zero-Sum Budgets

Your most important wealth-accumulation tool is your monthly income, and the most suitable way of harnessing the power this income is your monthly budget. Your budget is most important as everything else flows from your budget. Although there are many types of budgets, a zero-sum budget is a very nifty tool.

A zero-sum budget will get you to spend your income in a unique way. The main foundation of zero-sum budgeting strategy is you have to assign each dollar you earn a specific job. This helps prevent waste and can boost your income. The ultimate objective is to reach zero by the end of every month.

The goal of zero-sum budgeting is to ensure nothing is left after you subtract all expenses from your income. In case you will cover all the monthly expenses during any given month and still have, for example, $200 left, keep in mind you are not done with your budget. You will need to assign those 200 bucks toward a specific goal such paying a debt, investing or saving for college.  So, it is about telling each dollar where it needs to go.

A zero-sum budget may seem like just the perfect idea for your family; however, it cannot happen overnight. You will have to take some steps in a specific order to ensure that zero-sum budgeting works effectively for your family so you may accomplish your financial goals. These steps are:

  • Tracking your spending habits for about one to three months
  • Listing your typical spending categories
  • Assigning each expense to a particular category
  • Zeroing in on any problem areas
  • Assigning all categories a revised dollar amount

A zero-sum budget could be just what you may require in order to get on top of your finances. This is because it can help you pinpoint any problem areas and set financial limits that you could live with, while making your dollars work in your favor. And you do not need to buy anything to get started. Visit to find out how this budget can help you.

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