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Personal Finance from the Broke Perspective

Is Zero-Based Budgeting Only for Control Freaks?

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zero-based budgeting
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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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Fast Food, Fast Debt: How Convenience Culture Eats Your Savings

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fast food eating away at your savings
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With so many options at our fingertips, fast food is the ultimate convenience. It’s easier than ever to reward ourselves with a treat and pick up our favorite fast food. According to a study by the Journal of Marine Medical Society, The fast-food market is growing at a compounded annual growth rate of 4.6% worldwide. However, with rising prices fast food is no longer an inexpensive food option.

History of Fast Food

Fast food establishments were first born to provide quick, affordable meals for busy individuals. White Castle is often dubbed as the first fast-food chain. Founded in 1921 it offered affordable hamburgers and pioneering assembly-line methods for efficient food preparation. After WWII, car culture led to the rise of fast food chains like McDonalds gaining popularity.

Rising Costs

Between 2014 and 2024, average menu prices at popular fast-food chains increased by 60%, with some chains like McDonald’s experiencing increases exceeding three times the national inflation rate. Rising labor costs have contributed to this rise in prices, with some chains paying workers up to $20 per hour. According to a March 2024 report by the Federal Trade Commission, higher operating costs, supply chain disruptions, and corporate profits have also contributed to high food prices. These additional expenses have been passed down to the consumer making fast food restaurants no longer an affordable option.

Most Americans eat fast food 1-3 times per week. Data from the National Center for Health Statistics from the Center for Disease Control shows that a little over one-third (36.6%) of adults in America eat it on any given day. On average, a US household will spend 10% of their annual income on fast food. This amount of money spent on fast food can be detrimental to your savings. To keep your budget on track, it’s important to resist treat culture and the convenience of fast food. There are still affordable ways to feed yourself and your family, some of which are still easy.

Ways to Adjust Your Spending

According to a 2024 survey conducted by LendingTree, 78% of consumers now consider fast food a “luxury” purchase due to its increasing cost. Many consumers now look for chains that offer meal deals. Recently McDonald’s has launched their $5 meal deals and Taco Bell offers a value box. While these initiatives don’t really increase sales for fast food chains, they do retain customers who are shying away from fast food due to its cost. If you do purchase fast food, look for value items and take advantage of deals, which are usually offered in the chain’s app.

To truly save money, you may have to ditch fast food altogether. Many consumers find the most value in cooking at home and purchasing read-to-heat meals from grocery stores. If you rely on fast food for affordable options, you may have to find new ways to save on food. Consider finding ways to save on groceries like couponing, using services like Flash Foods for discounted items, or using a low-cost meal delivery subscription like EveryPlate.

How often do you eat fast food? How much do you spend per month? Let us know in the comments. 

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New City, New Life? 9 Financial Struggles You’ll Face (And How to Survive Them)

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moving to a new city
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Moving to a new city comes with excitement, but also unexpected expenses. From relocation costs to housing, taxes, and a higher cost of living, your budget may take a hit. So how can you stay financially stable during the transition? Here’s how to navigate the challenges and keep your finances in check.

1. High Moving Costs

Moving costs, especially if you are moving far can be a financial burden. If you are moving for work, ask your employer about a relocation package to help offset some of these costs. Otherwise, you may want to consider doing some of the moving yourself by renting a U-Haul truck or packing up your belongings yourself. This can help you save a good amount of money.

2. Housing Costs

Housing costs are usually one of the biggest financial stressors when you move. You may be stretched thin trying to provide money for rent including a security deposit. If you’re buying a home, your down payment and mortgage payments may also have drained your savings. If you’re feeling broke, make sure to adjust your spending habits until you can get back on track.

3. Increased Cost of Living

The things you once were able to comfortably afford may be more expensive in your new city. Groceries, gas, and eating out may all be more expensive. If this is the case, make sure you adjust your budget accordingly and consider bringing in additional income if you can’t find ways to make your budget work with an increased cost of living.

4. Lifestyle Creep

Is your new city more expensive than your last? You may find that lifestyle creep becomes a financial struggle for you. The things you once were able to afford may not be within budget anymore. You also may feel a strong fear of missing out on experiences in your new city. Try and balance how you spend your money and not let your new city blow your budget.

5. New Job Hunt

If you move without a job, you may face the financial struggle of job hunting. Hopefully, you’ll be able to use your emergency fund or savings to get you by while you look for a new job.

6. Transportation Costs

You may need to get around in a different way when you move. Maybe you’re used to walking or using public transit, but that isn’t an option in your new location. You may need to invest in a car if that is the only way to get from place to place.

7. Higher Taxes

If your new area has higher taxes, make sure that you budget appropriately. You may have to pay more in income tax, sales tax, or property tax in your new city.

8. Higher Utility Bills

Changes in weather in your new city may leave you with higher utility bills than you are used to. Especially when you are unsure how much your utilities may cost, it may come as a shock. To lower your bills use energy-efficient appliances, unplug devices, and compare utility providers.

9. Healthcare Costs

When moving to a new city, make sure that your new doctors are in-network. Don’t get caught going to doctors that are out-of-network, which will cost you more out-of-pocket. Especially if you are switching healthcare plans, your premiums may also increase in a new city. Be sure to check what your insurance coverage entails.

Are you moving to a new city? What unexpected costs have surprised you?

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