{"id":1300,"date":"2021-10-20T13:52:53","date_gmt":"2021-10-20T18:52:53","guid":{"rendered":"https:\/\/www.creditaid.ca\/blog\/?p=1300"},"modified":"2025-06-17T11:55:13","modified_gmt":"2025-06-17T16:55:13","slug":"how-to-give-every-dollar-a-purpose","status":"publish","type":"post","link":"https:\/\/www.creditaid.ca\/blog\/2021\/10\/20\/how-to-give-every-dollar-a-purpose\/","title":{"rendered":"How to Give Every Dollar a Purpose"},"content":{"rendered":"\n

Every dollar you bring in should have a purpose or a \u2018job.\u2019 This is the premise behind the zero-based budgeting <\/strong>model, and it works for millions. It helps you not only pay your bills on time, but also makes sure you save money every month, something many of us plan for the end of the month only to find that our money is gone.<\/p>\n\n\n\n

So how do you give every dollar a purpose? Follow these steps.<\/p>\n\n\n\n\n\n\n\n

Know How a Zero-Based Budget Works<\/strong><\/h2>\n\n\n\n

First, know the zero-based budget premise. You should have \u2018zero dollars\u2019 left at the end of the month if you give every dollar a \u2018job.\u2019<\/p>\n\n\n\n

The jobs include paying your bills, paying off debt, and saving for financial goals<\/strong>. Every \u2018job\u2019 gets a line item in your budget. This ensures you\u2019ll pay it and make your budget work for you.<\/p>\n\n\n\n

Determine your Expenses<\/strong><\/h2>\n\n\n\n

Next, determine your expenses. Don\u2019t just assume you know how much you spend each month. Pull your bank statements from the last couple of months and categorize your spending. Figure out where you spend money and if you should cut back.<\/p>\n\n\n\n

Determine your Income<\/strong><\/h2>\n\n\n\n

Do you know how much money you bring home each month or do you just spend it? Knowing how much you make is important. It\u2019s the only way to create your budget<\/a>.<\/p>\n\n\n\n

Realizing how much money you make helps you budget correctly. You may decide you need to cut back on certain expenses or allocate your money differently. It\u2019s eye-opening to see how much you make.<\/p>\n\n\n\n

Create your Zero-Based Budget<\/strong><\/h2>\n\n\n\n

Once you know your incomings and outgoings, it\u2019s time to make your zero-based budget<\/strong>. Take your income and subtract all bills first. Next, figure out how much of your money you can allocate to debts and savings.<\/p>\n\n\n\n

Ideally, 20% of your income should cover your debt payoff<\/a> and savings. If you aren\u2019t at that point yet, start where you can and work your way up.<\/p>\n\n\n\n

What about Debt?<\/strong><\/h2>\n\n\n\n

Find a good balance of paying off debt and saving money<\/a>. Both are important. You shouldn\u2019t live with high-interest debt, but you also need money saved for emergencies, financial goals, and retirement.<\/p>\n\n\n\n

Focus on the high-interest debt first as that\u2019s an opportunity cost to any money you could earn from savings. If you have a lot of debt, consider using the debt snowball method<\/strong> to get control of your deb<\/a>t<\/a> and to know which debts to pay off first.<\/p>\n\n\n\n

Final Thoughts<\/strong><\/h2>\n\n\n\n

Giving every dollar a purpose is important. You\u2019ll earn interest on any money you don\u2019t need to pay bills or pay off debt<\/strong>. You\u2019ll also be more focused on where and how you spend your money. Leaving savings and debt payoff to chance only costs you money and decreases the funds you could have for retirement or other financial goals.<\/p>\n\n\n\n

Create a budget that works for you, giving every dollar a job, but don\u2019t be afraid to make changes. Reassess how you\u2019re doing and if any changes are necessary so you can reach your financial goals.<\/p>\n\n\n\n

If you need advice on how to take the first step, contact us<\/a> for a free consultation with a Credit Counselor<\/a> today!<\/p>\n","protected":false},"excerpt":{"rendered":"

Every dollar you bring in should have a purpose or a \u2018job.\u2019 This is the premise behind the zero-based budgeting model, and it works for millions. It helps you not only pay your bills on time, but also makes sure you save money every month, something many of us plan for the end of the … <\/p>\n

Continue reading “How to Give Every Dollar a Purpose”<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":1301,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/posts\/1300"}],"collection":[{"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/comments?post=1300"}],"version-history":[{"count":2,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/posts\/1300\/revisions"}],"predecessor-version":[{"id":1303,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/posts\/1300\/revisions\/1303"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/media\/1301"}],"wp:attachment":[{"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/media?parent=1300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/categories?post=1300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.creditaid.ca\/blog\/wp-json\/wp\/v2\/tags?post=1300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}