ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -List your monthly income. List your expenses. Subtract your expenses from your income to equal zero. Track your expenses (all month long). Make a new budget (before the month begins). 18-Oct-2022

Detailed explanation-2: -Definition and Examples of Zero-Based Budgeting For example, let’s say you take home $3, 000 per month. With a zero-based budget, you’d allocate all of that money to bills, savings, and spending, so that at the end of the month you have $0 left.

Detailed explanation-3: -A zero-based budget is a framework that assigns a job to every dollar of your take-home pay. In other words, you’re aiming for what you bring in and what you send out to hit zero each month. But a zero-based budget doesn’t mean your goal is to spend everything you earn.

Detailed explanation-4: -Zero-based budgeting starts from scratch, analyzing each granular need of the company, instead of incremental budgeting increases found in traditional budgeting, Essentially, this allows for a strategic, top-down approach to analyze the performance of a given project.

Detailed explanation-5: -List Monthly Income. Your after-tax monthly income is the amount of money you have to work with. List Mandatory Expenses. List Variable Expenses. Subtract Expenses From Income to Equal Zero. Track Expenses. Make a New Budget Each Month. 09-Nov-2022