BUDG031.docx
This article explores the concept of zero-based budgeting, an accounting method that is making a comeback. While primarily used by organisations, zero-based budgeting can also be applied to personal finances, helping individuals review and justify expenses, understand their spending habits, and achieve savings goals. The article provides a step-by-step guide to creating a household zero-based budget and highlights the benefits and drawbacks of this approach in both corporate and personal settings.
Ever heard of zero-based budgeting? No? Originally developed in the late 1960s, zero-based budgeting is an accounting method that has experienced a revival in recent times.
In conventional budgeting, expenditure from previous periods is used as a starting point and raised by a set increment, resulting in many costs and expenses not being reviewed for years.
Conversely, zero-based budgeting does not assume increased costs are a matter of course. Instead, it involves redrafting the budget from scratch every period by analysing and justifying all expenses.
To download and use this content, make sure you're logged in to the Library then hit the Download button. No login details? Register here for full access.
Infographics are a great way to deliver information in an eye-catching format.
In addition to articles, the Financial Content Library has a range of infographics and social cards for you to use on your website and in your newsletters. They are perfect for sharing via social media.
We are offering a complimentary, professionally designed infographic for you to use copyright-free wherever you wish.
Ask (using the form) and you will receive!
Are you a qualified financial planner with hands-on experience and a passion for writing?
Yes? Click here to learn more about joining our writing team