Zero-based budgeting is a term commonly used in business. You may have heard of the every dollar budget as made famous by Dave Ramsey. We want to ensure that every dollar of income generated by your household has a purpose. That may be saving, investing, bills, or groceries. By fully understanding our inflows and outflows of household cash we can make more intentional decisions with our money.
Too many Americans are living beyond their means. We want to live below our means so that we have a surplus of cash to save and invest. This is how wealth is built and how we can achieve financial independence. The more you earn, the more you reduce your budget, and the more efficient you are, the faster you can achieve financial independence.
What's the alternative? Staying in debt? Losing your credit score, your car, or even worse, your house?