Definition
Zero-Based Budget
A budgeting method where income minus every assigned dollar equals zero.
In a zero-based budget, you give every single dollar of income a job (bills, groceries, savings, debt, fun) until you have zero dollars left unassigned. It does not mean your bank account hits zero; it means no money is left drifting without a purpose.
This method gives you the most control and works especially well when money is tight or you are chasing a goal, because nothing slips through the cracks unnoticed.