The first full month of my new zero-based budget was a success. My new budget plan is to set aside the amount of money I plan to spend at the beginning of the month in my checking account and any deposits are sent to my money market account. Once the money in my checking account is gone, I can’t spend any more money for the month.
My income was a little bit higher this month due to getting my company bonus. The majority of the bonus was deposited into my rental property savings account to cover some upcoming maintenance items that need to be completed.
Nothing really out of the ordinary this month. I budgeted $4100 to spend for the month and I spent a little over $3800. The difference of $296.38 was transferred over to my money market account to zero out my checking account. On February 1, I’ll transfer another $4100.00 to my checking account and start all over again. (Note: The mortgage amount includes the mortgage for my primary home and my rental property).
I really like this new method and I think I’ll stick with it. Instead of trying to allocate money to several categories, you allocate money for the month. To me, it makes budgeting easier.