Zero-Based Budgeting

Every dollar has a job! Here, you assign every single cent of your income to a spending or saving category before the month begins, ensuring complete control over your finances.

Priority Categories

These are the rock stars of your budget! Think housing, food, transportation, savings, and any other essential or desired spending areas. Prioritize and allocate funds based on your values and goals.

Envelope System

Feeling old-school? This method involves allocating cash to designated spending categories in physical envelopes. Once the cash in an envelope runs out, the spending stops, helping you stick to your limits.

Percentage Allocation

Want a more automated approach? Divide your income into percentages for different categories, like the popular 50/30/20 rule: 50% needs, 30% wants, 20% savings( 10% Pay Yourself First Strategy and 10% Emergency Fund). Track and adjust as needed.

Debt Ratio

Keep an eye on how much of your income is going towards debt repayments each month. This ratio helps you monitor your debt management progress.

Debt to Income Ratio

Get a bigger picture by comparing your total debt to your overall income. This ratio helps assess your overall financial health and borrowing risk.

Budget adjustments

Life happens! Be flexible and adjust your budget throughout the month to accommodate unexpected expenses or changes in income. Remember, your budget is a living document, not a rigid rulebook.

Wrap Up!

By understanding these terms, you can create a customized and effective budgeting strategy that fits your unique financial needs and goals.