Beating Broke

Is Zero-Based Budgeting Only for Control Freaks?

May 8, 2025 By Teri Monroe Leave a Comment

If you’re trying to create a budget, there are several methods that can help you get started. One of which is zero-based budgeting. This method is very detailed and helps you put each dollar to work. However, it is very precise, and some may say that only control freaks use this method. Here we’ll help you determine if zero-based budgeting is for you.

What Is Zero-Based Budgeting?

Essentially, with zero-based budgeting, you start from scratch every month. Instead of looking at past expenses to allocate funds and determine your budget, you assign every dollar a job until there is zero left unassigned. So your income minus expenses must equal zero, and if you overspend in one area, you must take it from another.

So, as you can see, zero-based budgeting is a little rigid. There is no wiggle room with this type of budgeting, and you must justify every expense. Plus, since you’re reassessing your budget every month, you are constantly reevaluating your spending habits. This may be why zero-based budgeting gets pegged as only being for control freaks. Is this really true, though?

Is Zero-Based Budgeting Only for Control Freaks?

Zero-based budgeting isn’t just for control freaks. This type of budgeting forces you to be intentional with your money and not overspend. However, it is a lot more work since you’ll have to create a new budget each month. It is for people who want clear control of their money. If you need to prioritize a goal like paying off your debt or you want to avoid being short on cash at the end of the month, zero-based budgeting might be right for you.

Other Types of Budgeting

If you hate the upfront work of zero-based budgeting, other methods may suit you better. For example, the 50/30/20 rule may provide more flexibility, and you won’t have to track everything. In the 50/30/20 rule, you’ll assign more broad categories and use 50% of your income for needs, 30% for wants, and 20% for debt and savings.

You may also want to experiment with cash stuffing or the pay yourself first method. Cash stuffing uses envelopes to divide cash into categories for spending. With pay yourself first budgeting, you save or invest a fixed amount before any other spending. If you find that you really hate budgeting, you may even consider the anti-budget. With an anti-budget, you only set aside enough money for your bills and savings, and then spend the rest as you wish. It’s the most flexible method, but not the most effective.

Choosing The Right Budgeting Style

There are so many ways to budget, and it’s not one-size-fits-all. It’s best to try out different budget types to see which one best fits your lifestyle and personality. If you pick a budgeting style that best suits you, you’re more likely to stick with it. Then, you’ll be able to reach your financial goals more easily.

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8 Utility Bill Cuts That Your Service Providers Are Willing To Give If Only You’d Ask

May 6, 2025 By Teri Monroe Leave a Comment

Finding discounts on your utility bills — Image Source: Pexels

Do you struggle to pay your utility bills? CBS News reported that the cost of electricity has risen from 14 cents per kilowatt hour in 2019 to 18 cents per kilowatt hour, an increase of more than 28.5%. The average utility bill in the US was nearly $300 a month in 2024. So, how can you reduce your bills? Here are eight discounts your utility companies may offer if you ask.

1. Assistance Programs

If you receive Supplemental Security Income or Transitional Aid to Families with Dependent Children, you may be eligible for low-income assistance programs. There are also several federal programs that you can apply for assistance. HEARTWAP provides emergency heating system repair and replacement services to low-income households. WAP provides eligible households with full-scale home energy efficiency services. The program is funded by an annual grant from the U.S. Department of Energy, and administered by a network of local agencies.

2. Senior Discounts

Some utility companies offer discounts to individuals 60 years of age or older. Some companies offer a 5% discount for seniors. Many towns have discounts on water services for seniors as well.

3. Veteran Discounts

Many companies offer discounts for active and retired military. For example, if you live in a deregulated electricity state, you can choose your own provider. Then, you can choose a provider that offers a military discount, since many have been discontinued.

4. Paperless Billing Discounts

Ask your utility providers about any discounts for paperless billing. These can be a one-time discount or percentage off each month. Either way, it can help you keep more money in your pocket.

5. Energy Rebates

Did you recently upgrade to energy-efficient appliances or insulation? Many states will offer you a credit for doing so. But they don’t always advertise this fact unless you ask directly. These discounts include rebates for installing energy-efficient water heaters, HVAC systems, building insulation, appliances, weatherization, lighting, and other energy-efficient improvements.

Federal tax credits for energy efficiency expired at the end of 2016, but some programs are still active. If you installed solar panels, you can still receive a tax credit.

6. Loyalty Discounts

Some companies will offer loyalty discounts for long-time customers. It’s best to ask about this type of discount because it usually isn’t offered upfront. However, many companies value loyal customers. So, it’s possible that you’ll be able to get a discount or possibly a lower rate overall.

7. Hardship Discounts

If you can’t pay your utility bill, call your providers. They may offer you hardship assistance. You may be able to make adjusted monthly payments on your balance to avoid interruptions in service.

8. Budget Billing

Budget billing evens out your payments throughout the year based on past usage. This way, you won’t have big fluctuations in your bills in different seasons. If for any reason you underpay or overpay, you’ll receive a credit or additional utility bill.

Reducing Your Utility Bills

When it comes to utility bills, every dollar saved is helpful. Be proactive and call your providers to find ways to reduce your bills. You may be surprised at what you qualify for and how much you can save each month.

Have you received any other kind of discount on your bills? Let us know in the comments.

Can You Really Budget Your Way Out of Poverty?

May 1, 2025 By Teri Monroe Leave a Comment

Can you budget your way out of poverty? — Image Source: 123rf.com

If you’re living in poverty, it may seem like there’s no way out. However, improving your financial literacy and learning how to budget can make a difference. While it might not be the sole escape from poverty, it can help you understand where your money is going. Here are a few tips to help you create a budget and improve your financial situation.

Creating Spending Categories

A Budget is an excellent way to understand your cash flow. By creating spending categories, you’ll be able to see how much you spend on things like food, bills, clothes, transportation, etc. This in turn can help you understand how much money you’ll need each month to cover your expenses. Once you’ve set your spending categories, you can check in throughout the month to see where you’re at spending wise. Once you’ve observed your spending patterns for a few months, you can easily set limits for each category. Then, you can easily keep yourself on track throughout the month.

Making Changes

Within your budget, eventually you’ll want to allocate money for savings and any debt repayment. While you might not be able to make these changes now, a budget will help you use any extra money you have wisely. Even just putting $5 a week into a savings account can help you work toward a better future. Especially if you’re in debt, getting out of the debt cycle can feel overwhelming, but the only way to become debt free is to take the first step toward repayment.

Additionally by managing your spending, you can find areas where maybe you can cut costs and use that money for another purpose like creating an emergency fund. Then, when an unexpected expense arises you’ll be ready to cover the cost. While it’s not easy to do, learning to manage your money can help you get out of poverty.

Do You Need Additional Income?

Creating a budget can help you see exactly how much you are missing to cover your expenses each month. With this information, you’ll be able to see if you need additional income and just how much you’ll need to earn. This can help you get out of poverty and improve your finances.

Will Budgeting Alone Get You Out of Poverty?

The true answer is that there is no one simple solution to getting out of poverty. Often, finding a way out is challenging and is sometimes called the poverty trap. Your financial situation may be due to systematic issues like limited access to employment opportunities, healthcare, or education. Budgeting alone is not a way out, but merely a tool to help you take control of your finances and work toward a solution. Use the resources around you, consult a financial advisor, and read or listen to financial literacy books and podcasts. Ultimately, the more you learn about managing your finances, the more equipped you’ll be to find a way out of poverty.

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