Set up a zero-based budget
Set up a zero-based budget
In a zero-based budget, you assign every dollar of income to a category or goal until nothing is left unassigned. That way you know exactly where your money is going.
Steps
- Create a new budget. Go to Budgets → New budget → "Split my income."
- Enter your total amount. Enter your income for the period (e.g. monthly take-home). Select the accounts this budget uses.
- Create an allocation rule that uses 100%. When asked how to split your money, choose "Create new rule" (or "Zero-based" template if available). Add allocation items for every category you want to fund—use Percentage or Fixed amount so that the total adds up to 100% of your income. Use Remainder for the last item so any leftover goes there (e.g. "Extra savings").
- Apply to budget. Click "Apply to budget." You'll see a line for each category. Adjust amounts if needed so that the total budgeted equals your income. Save.
- Track and adjust. As you spend, compare actual vs budgeted. If you overspend in one category, move money from another (edit the budget) so you stay at zero.
You're all set. Every dollar has a job. Revisit your zero-based budget when your income or priorities change.
See also How to choose and set up your budgeting method, Set up envelope budgeting, and Income allocation rules.
Related articles
- How to choose and set up your budgeting methodChoose the budgeting style that fits you—from simple splits to category-by-category planning—and set it up in a few steps.
- Set up envelope (category) budgetingSet a fixed amount per category (like envelopes); when it's gone, you stop spending that category.
- Income Allocation RulesSet up rules to allocate income to categories, accounts, or goals automatically.