So "Zero Based Budgeting" works...

**peanut** · 10-17-2008, 04:47 PM

Or at least it does here. I'm not sure how, but we seem to be able to put aside an extra $600/mth. with this method. I have no idea why it's working, but it is. I guess I am clamping down on my spontaneous purchases with this.'

We've used envelopes for years, and jars this last year (just another form of envelopes, only less portable). But the big difference is the zero-based budgeting, which keeps us from taking too much money out of the bank in the first place. If it's not in the jars/envelopes, it doesn't get spent. Especially as we've decided to go all cash.

I could get to like this approach...

Jean

**twins0516** · 10-17-2008, 05:10 PM

If it works for you that is awesome!!! Everybody has their own way of doing things. I do better when there is no money easily accessable too, if it is around I will spend it!!

**tmffv** · 10-17-2008, 05:40 PM

That's great that you've been able to see such a difference! What a great feeling I bet!!

The whole zero-based concept makes sense to me, but I can't seem to implement it as it should be. Seems like it doesn't work unless you are on a completely cash only budget and have enough will power to not take out "extra" in the checking account for something unplanned. We are not at the point yet (**long frustrated sigh**) and until we are I feel like I always need to leave a little extra from every paycheck unassigned, kind of like our stupid, wasteful spending fund

**peanut** · 10-17-2008, 06:03 PM

Originally Posted by tmffv

The whole zero-based concept makes sense to me, but I can't seem to implement it as it should be. Seems like it doesn't work unless you are on a completely cash only budget and have enough will power to not take out "extra" in the checking account for something unplanned.

I think you're right there. It's only worked for us because we agreed to put away credit cards and debit cards too...and just go cash. I've found there are ways to get what I want free or cheap, so I often don't have a lot of unplanned expenses.

We have a fully funded EF for any emergencies, so that helps. Also, if there was a need for something, DH and I have some extra cash stashed in a bank account for small time things. But we rarely go into it. This year we used it to pay to have trees cut down and pruned. Because of the Zero Based Budget we were able to pay that money all back into that fund in one month!

But if I'd been spending on the CC we wouldn't have been able to do this...

Jean

**SaucyCranberry** · 10-17-2008, 06:11 PM

That's great it works for you. I'm envious. I find myself trying to tweak the cash only. (Like moving from one fund to another, so I'm still not really sticking with the budget). And it panics me to have that "finality" of the zero-base in the checkbook. (Even w/ an EF and a not recorded buffer in the checking account). It appeals to me logically, but emotionally, it makes me a mess. LOL

**ladykemma2** · 10-18-2008, 07:36 AM

i can't figure out why, with the zero based budget, i have 100 bucks left over at the end of the month.

**peanut** · 10-18-2008, 01:26 PM

Originally Posted by SaucyCranberry

I find myself trying to tweak the cash only. (Like moving from one fund to another, so I'm still not really sticking with the budget).

I do this with envelopes/jars too. The secret has been to just get out what we need ahead of time. Chances are anything else that comes up is either an emergency or something that can wait. However, having said that, we forgot to take out money to celebrate our anniversary. DH will put it on CC probably. I don't know...I'll have to check how he plans to pay for it... It's today...

Jean

**Cricketlegs** · 10-18-2008, 01:30 PM

The way I see it, if you put it all in the budget along with allowances and other places money gets used(for us we have a kids slush fund) and then use whatever is left then nothing gets blown.

Zero based WORKS but only if you cover everything.

If dh didn't have cash allowance out would come Mr debit card.So allowances are in the budget.

if I didn't have kids slush fund...and I did zero based--whoopsie I will be moving money from the EF.

You have to cover every base to make it work. Be REALISTIC!

Also, use all extra on debt, savings, stockpile, whatever right when you get it! Hard to spend what you don't have right?

**Lady_V** · 10-18-2008, 01:52 PM

Where do you move your 'extra' to?

**peanut** · 10-19-2008, 10:29 PM

Originally Posted by Lady_V

Where do you move your 'extra' to?

We move it to short term savings. Right now we're saving money for DD#2's university costs.

It turned out DH hadn't transferred money out of our operating account to savings yet. So we just used cash to pay for our anniversary dinner out. But we were still able to transfer $800 this paycheck alone into short term savings. That's extremely rare for us to be able to transfer that amount to savings. I hope there isn't something serious I've forgotten about...

Jean