How To Do the Zero-Based Budget and Envelope System (Vlog)

Okay friends, this is the system we used to get out of debt.

Blow it up, watch it in HD, and take notes.

The point of this budget is to allocate your paycheck ASAP so you don’t spend it on things you don’t need.  If you find yourself in a situation where you need a little extra spending money, make yourself an envelope with a certain dollar amount, or up your “Fun” or “Misc” envelope.

And don’t hesitate to leave a comment if you have any questions.



  1. Do you do this the same way if you get paid weekly? My check is direct deposit which is required by my employer. And I had a really bad time the end off January and over drew my checking and I am still fighting to get it fixed. So I’m embarrassed to say that my check is gone every week before it goes into my account. I don’t go anywhere I don’t spend any money every penny goes to over draft fees. Several of my utilities and my mortgage have to be paid online. To keep my utility’s on (I only have the necessities) they are deducted and so far every week I have at least 2 bills come out of each check and the remainder is nsf fees. I can’t break out and I don’t have anyone to help me I’m a 50 yr old very embarrassed woman that has lost all hope and is about as low as a person can get. Any kind of suggestions would be extremely appropriated. Will this method work with me having to pay a majority of my payments online. Not counting my house which is $65,000 my debt is only around 12,000. I can’t lose my house it’s all i have. And I’m 2 months behind on my car payment which is only $167. That’s my only way to work. I am so lost and discouraged but i won’t give up. I can’t. I just need a new direction and someone to help point it out to me. Thank you and please don’t judge I’m really trying here.

    1. Dave Ramsey would say you have to take care of your 4 walls before paying debt… pay food, rent, utilities first. Then pay your car next so you have a ride to work. If I had so many fees at the bank that I never saw my check, I would open a new account at a new bank for your check to go into. Then immediately start the zero based budget as taught here. Put the bank fees from the old bank on the snowball. They will eventually get paid! You have to tell every dollar you earn where to go but please make sure you are taking care of your immediate needs first in that budget. Pick up some extra work if you don’t make enough for your basic needs. Get a copy of the book Total Money Makeover for detailed instructions on this system.

  2. How do you do a budget and envelope system when you have some money(child support) at the beginning of the month.. then irregular paychecks each week… not consistent or equal amounts..

    1. Jessica, you may want to look into the forecast budgeting approach. You basically keep track of your future account balance rather than just budget a month at a time. It’s a very flexible system where you can enter your repeating bills and see your cash flow months in advance.

      My site, is very flexible for what you want. It can handle irregular payments and it even reminds you when your bills are due.

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