As you know I’m a personal finance book junkie, and I often find myself re-reading personal finance books over and over again just to freshen up my own personal finances. Recently I re-read Zero Down your debt Reclaim your income and build a life you’ll love by Holly and Greg Johnson. This book is all about zero sum budget also known as zero-based budgeting. What is zero sum budgeting? Zero sum budgeting is essentially giving every single one of your dollars a job. After all of your bills are paid if you have an extra $400, you would give that $400 a task either put it towards your debt, your savings or investments. At the end of the month you should be left with $0 In your account. Which means that you’ll actually have to create a written budget and stick to it. This leaves little room for guessing because if you’re putting in the wrong numbers you may end up over drafting and believe me this isn’t what we want. For the month of June I decided I want to give this zero sum budgeting a try and only spend what’s in my account (with an $100 buffer just in case).
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