Zero-based budget: giving every dirham a job
AmanaFi team · Updated · 1 min read
In a zero-based budget, income minus planned spending, savings and giving equals zero. It does not mean spending everything: every dirham gets a job, including being saved.
How to apply it
At the start of the month, list income then split it until nothing is left unassigned.
- Fixed costs first.
- Savings, sadaqah and debt repayment next.
- Variable envelopes for the rest.
- A small "surprises" line to absorb gaps.
Its advantages
No dirham stays vague, so you do not wonder at month end where the money went. The method suits modest incomes, where every sum counts.
Its limits
It takes about twenty minutes of preparation a month. If your income varies a lot, build it on the minimum income and assign the extra when it arrives.
Frequently asked
Does zero-based budgeting mean spending all your income?
No. Savings and giving are part of the assignments: the unassigned balance is zero, not the savings.
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