How Does a Zero Based Budget Work? Dave Ramsey Would be Proud of You!

You have all heard that a budget is needed to control expenses but what is this thing called a "zero based" budget?  Why not just use an old fashioned one?  Dave Ramsey always recommends the zero based budget so that every dollar has a name.  It is like you telling your money where to go instead of wondering where it went.  Essentially, a zero based budget is where you will end up with zero dollars left at the end of the month because you accounted for every last dollar.
You start with your total income and end with the remaining money going to a specific place. There is ZERO unaccounted for money. It is difficult to be accurate for the first several months but you will soon better at predicting your total expenses. Keep track of every expense (even the little ones) and you will be able to identify and reduce your frivolous expenditures. Visit Dave Ramsey's website for more information on the zero based budget.