Whether you are building up the retirement fund, paying off debt, saving up for a move to a retirement community or just looking for a way to manage your money, having a zero-based budget can help you to save more and reach your financial goals. Here is how you can create a budget and give your savings account a huge boost. Read on to learn how to help your aging parent with zero-based budgeting!
What is a Zero-Based Budget?
Normally, “zero” is not something you want to hear when it comes to money. For this budget plan, the goal is to obtain zero. A zero-based budget is a spending and saving plan where every dollar has a job to do. Some of your income will go toward savings, some toward investments and some to expenses. If your budget balances out, you have zero dollars left. When every dollar has a purpose, no money will go into or leave the bank account without your knowledge.
Calculate Your Monthly Income
Get a notebook or a spreadsheet. You can even use a budgeting app on your phone. Then, calculate your monthly income, including side hustles, paychecks, residual income, Social Security checks, and anything that enters your bank account during the month.
Write Down the Monthly Expenses
At the start of every month, write down your planned spending. Start with housing, utilities, transportation and food. These are the most important parts of every month. After you have written down the costs of basic needs, there are a few more steps to take.
Write Down Your Yearly Expenses
Don’t let the seasonal costs sneak past you. Think through the whole year and plan for events such as birthdays, vacations, anniversaries, or buying gifts during the holidays. Account for yearly expenses such as insurance premiums and taxes. Set aside some money every month to make paying annual costs less stressful.
Subtract Income from Expenses
Once you are done creating the monthly budget, add up the expenses. Then, subtract from your income. If you are created a zero-based budget, you will get zero as the result. If not, take a look at the items inside your budget again. See how you can cut any unnecessary costs or make yourself save a little more.
Record All Your Spending and Income
After creating your budget, don’t just put it aside. You have to refer to it all the time. For a zero-based budget to work, you need to track your transactions, even if it is just a few dollars at the store. Subtract the number from the spending category to track how you are doing. Ensure it lines up with your bank account statements as well.
Experience Discovery Village At Sugarloaf
Discovery Village At Sugarloaf is an established retirement community located north of Atlanta. We offer you quality service and care at a great value. Here, you can enjoy watching movies, delicious meals and chilling with friends. For a wonderful senior living experience, head to Discovery Village At Sugarloaf today! Feel free to contact us for more information!
