Zero-based budgeting means planned income minus planned allocations equals zero. It does not mean spending everything. Savings, investments and debt prepayments are allocations too.\n\n## Begin with dependable income\nUse income you reasonably expect during the budget period. Keep uncertain bonuses or irregular work separate until received.\n\n## Fund essentials first\nAllocate housing, utilities, food, transport, insurance and required debt payments before flexible categories. Then add goals, investments and discretionary spending.\n\n## Compare plan with actuals\nA budget is useful only when compared with transactions. Review category usage during the month and move future allocations deliberately rather than rewriting history.