 TITLE: 4 Types of Budget Plans to Know About CONTENT: 3\\. Zero-Based Budget\n---------------------\nThe zero-based budgeting method works similarly to the envelope system but with a couple of key differences. First, you don't have to use envelopes to keep track of your money, and second, you're not restricted to using cash.\nThe main concept behind a zero-based budget is that you give every dollar you earn a purpose—in the end, your monthly expenses should equal your monthly income. But this doesn't mean you're supposed to spend every dime that comes in every month. In fact, this approach is all about being meticulous with where your money goes.\nYou'll likely have a lot of spending categories to plan for and keep track of, and a plan for what to do with any money that's left over (put it in your savings, for instance). If you overspend in one category, you'll need to stop spending in that area until the next month or take from another category.\nA zero-based budget is a good option for someone looking for a detailed approach to managing their money who wants to know exactly where all of their money goes so they can make better decisions. This approach can also be good for someone who prefers to use credit cards. You're less likely to overdraw your checking account when you've budgeted every dollar to the penny. END