Welcome to Zero Based Budgeting!
Welcome to Level!
Level's philosophy to managing your money starts with Zero-Based Budgeting. This method will allow you to reach your savings goals, save money or even pay off debt.
What is Zero-Based Budgeting?
The Zero-Based Budgeting method involves assigning every dollar to either a savings or spending budget. After every dollar is accounted for, your income minus expenses gives you zero.
This practice of accounting for all dollars earned will be your biggest advantage to successfully achieving a Zero-Based Budget at the end of each month. It will keep you from overspending and on track to your final goals. Following this method stops unrealistic targets.
What's Next?
Once you've setup your budget for the month, it's important to stick to the set limits of each tracked category. When it's the end of the month, the budgeter will display your "Actual Disposable Income."
If in the positive, take that amount of money and apply it to one of your personal goals. Whether that's your savings, paying a debt, or investing. The key is to have zero dollars to start with the beginning of the next month. This allows you to see the progress, month by month, of your actual disposable income.
If you have a negative amount for your "Actual Disposable Income" the budget/spending needs re-evaluation. A negative Actual Disposable Income amount will bring attention to categories that too much is spent or those where less is spent. This will allow you to adjust your spending habits as needed to achieve your goals.
Ready. Set. GO!
Now that you understand Zero-Based Budgeting, you're ready to start optimizing your money!
Enjoy!
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