Sample Zero-Based Budget

 

You could notice that Americans spend the same amount of money on savings and charity in the initial expenses. We in Lithuania are still a long way from that. Why are Americans behaving this way? Because they believe in the strengths of their community, and want to support that community with their voluntary contribution. They do the same with their time. A large percentage of Americans are volunteers.

 
By the way, we can create the same zero budget for managing our time.

 

 

"November 2020 Budget: Income

Income 1	$2,500
Income 2	$1,500
Total Income	$4,000

November 2020 Budget: Expenses

House payment/rent	$1,200
Utilities	$120
Internet	$80
Groceries	$500
Transportation	$200
Insurance	$250
Savings	$100
Charity	$100
Entertainment	$150
Blow Money	$100
Credit Card	$120
Medical/insurance	$400
Cell service	$50
Clothing	$75
Home repair/maintenance	$75
Gift giving	$25
Total	$3,545

You now have a remaining balance after you’ve added up expenses. The remaining balance after you subtract expenses from income is $455 because $4,000-$3,545 = $455.

Now you’ll create additional lines in your budget to give a home to that $455. Those additional lines will include monies to help you reach your financial goals plus any expenses that might not normally occur during the month. Here’s an example.

Extra money toward debt	$300
Extra money toward savings	$100
Money for football game	$55
Additional Lines Total	$455

The goal is to make sure when that every dollar is accounted for and that there’s no money at the end of the month that doesn’t have an assigned job. Take a look:

Total Expenditures	$4,000
Total Income	$4,000
Difference	$0"