Question

3
Create a zero-based budget based on your own income (may include allowance or part-time job).


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Giving
Charity:
Other:
Giving total:
Transportation
Gas:
Car Insurance:
Oil Changes:
License & Taxes:
Transportation total:
Saving
Emergency Fund:
College:
Car & Repairs:
Computer:
Other:
Saving total:
Personal
Cosmetics/Hair Care:
Music/Technology:
Gifts:
Pocket Money:
Cell Phone:
Other:
Personal total:
Food
Restaurants/Eating Out:
School Lunch/Snacks:
Food total:
Clothing
Clothes:
Sports Jerseys / Apparel
Clothing total:
Recreation
Movies:
Concerts:
Sporting Events:
Other:
Recreation Total:
$Monthly Income - $Monthly Outgo = $Zero!

Answer 1

Creating a zero-based budget involves ensuring that every dollar of your income is allocated to a specific category, leading to a net balance of zero at the end of the month. Here’s an example of how to create a zero-based budget based on a fictional monthly income from a part-time job and allowance.

### Monthly Income
- Part-time job: $800
- Allowance: $200

**Total Monthly Income: $1000**

### Budget Categories

#### Giving
- Charity: $50
- Other: $20
- **Giving total: $70**

#### Transportation
- Gas: $80
- Car Insurance: $100
- Oil Changes: $30
- License & Taxes: $20
- **Transportation total: $230**

#### Saving
- Emergency Fund: $100
- College: $50
- Car & Repairs: $30
- Computer: $40
- Other: $20
- **Saving total: $340**

#### Personal
- Cosmetics/Hair Care: $30
- Music/Technology: $30
- Gifts: $25
- Pocket Money: $20
- Cell Phone: $40
- Other: $15
- **Personal total: $160**

#### Food
- Restaurants/Eating Out: $60
- School Lunch/Snacks: $40
- **Food total: $100**

#### Clothing
- Clothes: $50
- Sports Jerseys/Apparel: $20
- **Clothing total: $70**

#### Recreation
- Movies: $30
- Concerts: $20
- Sporting Events: $30
- Other: $10
- **Recreation Total: $100**

### Summary
- **Total Income:** $1000
- **Total Outgoing:**
- Giving total: $70
- Transportation total: $230
- Saving total: $340
- Personal total: $160
- Food total: $100
- Clothing total: $70
- Recreation total: $100
- **Total Out: $1,070**

### Balancing the Budget
In the example above, the total outgoing ($1,070) exceeds the total income ($1,000) by $70. You will need to adjust your budget in order to ensure that expenses match income exactly.

#### Adjustments
1. Reduce the Saving total by $70.
2. Updated Saving total: $270 (Emergency Fund: $100, College: $50, Car & Repairs: $30, Computer: $40, Other: $20)

### Final Budget Summary
- **Total Income: $1000**
- **Total Out: $1000**

This budget allows you to allocate every dollar and start building your financial future! Adjust categories as needed to fit personal needs and goals.