This is the fourth post in my Free Budgeting Guide. To get caught up, click here.

Adjust your zero-based budget

Now is the time to make a plan for all of your money. If there is any money left in the Total Remaining part of your budget, you must allocate it all so that it reaches zero!

In the budget above, there’s $1,111.00 remaining. That comes out to $249.00 and $862.00 per paycheck. What can you do with this additional money?

Let’s say the goal is to save and pay off your debts. You could do the following:

1st Paycheck: Increase your savings from $75.00 to $175.00, and make an additional Chase Credit Card payment for the remaining $149.00.

15th Paycheck: Add $214.00 for savings. Put $101.00 toward the Chase Credit Card debt (instead of the minimum $23.00). Lastly, put $600.00 toward the Capital One Credit Card debt (instead of the minimum $30.00).

These changes used all the remaining money and took the budget to zero. This is EXACTLY what you want for your budget.

In the next post, we’ll look at the changes to this budget over three months so you get an idea of how a zero-based budget can help you achieve your goals.

If this was your budget, how would you handle the remaining money? Would you do anything differently? Why?