All you need to know about a zero-based budget and why you need one

A zero-based budget lets you know where exactly you spend your money (Shutterstock)

With zero-based budget, you are giving every penny you earn a job. Zero-based budgeting is where all your income equals your expenses. In other words, your income minus your expenses equals zero. To put it into context: if you are earning Sh100, 000 a month then everything you spend including what you save and invest should add up to exactly Sh100, 000.

A zero-based budget lets you know where exactly you spend your money and this saves you from any looming disaster like when you find out you have no money and you have no clue where all your money went.