During all this craziness over the past few years, filled with uncertainty and uncontrollable situations, people have been trying to find something that they can have control over. Some people have chosen to control their diet and fitness - learning how to cook and finding ways to keep active despite closures of some gyms and public areas - while others have been turning to their finances. If you want to take back control of your life, then learning how to budget and control your finances is a great way to do just that.

Don't get me wrong, budgeting isn't necessarily easy. It does take some time and planning, but it gets easier over time -- especially once you have your own template or spreadsheet created. That being said, don't get discouraged! While there are some effective budget management skills everyone should know, there are many places to turn to for help, including finance books (for beginners or experts) and personal finance apps. Just make sure that you educate yourself on the budgeting basics first, and with these under your belt - as well as some patience - you will be sure to succeed!

What Is Zero-Based Budgeting And How To Make It

You have probably heard about zero-based budgeting, but you may still not know how it works. (If you haven't heard of zero-based budgeting yet, then you should definitely look into it; even the Air Force uses zero-based budgeting!)

Zero-based budgeting, also known as zero-sum budgeting, follows a pretty simple premise. As Lauren Greutman, a professional debt coach explains, "Zero-based budgeting is when you give every dollar, every cent, a purpose throughout the month." While this does mean that the sum of your budget at the end of the month will be zero - suggested by the name - this does not mean that you will have just spent every penny that you earned. Rather, it means you have consciously allocated this money to some specific purpose, whether it is towards your expenses or towards your savings - or ideally both.

One of the great things about the zero-based budget is the peace of mind it allows you to have, even - or especially - if you live on a tight budget. By taking control and allocating every penny, you can ensure that you will have enough money for everything that will come up in the month. You will no longer have to lay in bed worrying about affording your end-of-month expenses because you will have already allocated the money to do so.

Another reason why this budget is so great is that it does not focus on cutting your spending, which many budgets do require. Instead of focusing on cutting your spending, zero-based budgeting is "about funneling your spending toward your highest priorities". When you prioritize your money, you can spend your money on what you want and what you need. The important thing is to identify your priorities and then pay off your priorities first.

How Do You Make a Zero-Based Budget?

If you have never made a budget before, you may be surprised to hear that you can begin making a zero-based budget by following the same first few steps that you need for any type of budget. Follow these 4 simple steps to make your zero-based budget:

Can You Make a Zero-Based Budget With an Irregular Income?

Yes, you can! If you have restricted hours at work and thus don't make as much per month or maybe you are a freelancer with an irregular income, then you may worry sometimes if your income will last you through the month. But even with such an irregular income, zero-based budgeting works really well! You will just have to set up your budget a bit differently.

Instead of calculating to zero with your fixed income, you should do so with a low-earning average. The important thing is that your budget sum ends up being zero! Even in the case that your income is even lower than expected one month, you should be fine: Remember, this is where your prioritization is so important! Since you prioritized your expenses, just spend your actual income on the essentials, and cut out the less essential expenses. Dave Ramsey also has more advice on how to create a zero-based budget with an irregular income that could be beneficial for you.

Why Should You Even Use a Zero-Based Budget?

If you want more control over your personal finances, then making a budget should be your first step. The zero-based budget is especially helpful if you want to stop throwing money away on nonessentials. When your money - "every penny" - has a specific purpose, then you are less likely to waste it. The zero-based budget also allows you flexibility, since it does not tell you what percentage to spend, save, or invest, like some budgets do.

It doesn't matter if you are trying to get out of debt, save up for a big occasion like a dream wedding or vacation, or just want to set up a safety net - so that you don't end up needing to use a personal loan for an emergency, like a personal medical loan to help get you back on your feet. No matter where you are at in life, it is always a good idea to have a budget.

Who Can Benefit Most From Zero-Based Budgeting?

Maybe you! If you are someone interested in achieving your financial goals but need more flexibility than most budgets out there allow, then the zero-based budget could help you. While some budgets focus on cutting expenses and showing you how to stop spending money you don't have, the zero-based budget lets you choose what to spend your money on. The most important thing in any budget is of course to pay off your fixed expenses and needs first, but the zero-based budget let's you choose the rest.

Types Of Budgets

Once you have made the decision to start budgeting, your first task will be determining what type of budget is right for you. While you can get the three types of budgets explained in 3 minutes, here is a quick summary of the three main types of budgets.

Conclusion

If you have been looking for a budget that is right for you, look no further! The zero-based budget is easy to follow and will put the control of your finances back into your hands - where it belongs! Don't wait any longer. You deserve to meet your financial goals, and when better to begin than today?