You'll budget every dollar of income toward savings or expenses. Then, via the use of this spreadsheet (of course!), you will proceed to spend every dollar on paper before you spend it in real life. That is to say, at the start of each month, you'll sit down and estimate as best you can just how much income you'll receive during the upcoming month.
In zero-based budgeting, every dollar of income gets a job. Done correctly, these two ideas really intertwine nicely. To be more precise, Ramsey preaches the merits of two types of budgeting: 'zero-based' budgeting, and the 'envelopes' system of spending control.
(The planet Saturn may have someone on it who's a bigger fan of budgeting, but I can't speak to that.) He is, in fact, probably one of budgeting's largest proponents ANYWHERE on the planet. You might guess that financial guru Dave Ramsey, creator of the Baby Steps plan for financial security, is big on budgeting.Īctually, you'd be wrong, because in reality he's ABSOLUTELY INSISTENT on budgeting.
