It All Started With A Simple Zero-Based Budget

I can’t really remember when I first started the practice of budgeting.

Well .. even if I tried, I won’t be able to recall what happened because it was more than a decade ago!

At the start, what I wanted was a simple method which I could use to manage my personal finances.

I really wanted to get out of my negative net-worth status but at the same time, I wanted a fuss-free method that requires little effort to maintain.

People end up using different ways of managing money because we all have different preferences and characteristics, so there isn’t really right or wrong when it comes to this.

I guess the idea of a zero-based budget appealed to me because it was so intuitive and easy to understand.

There are many different ways of explaining what it is, but I really like one :

Zero-based budgeting is when our income minus our expenses equals zero.

One thing to be clear is that in this case, expenses don’t just refer to our monthly needs but also our long-term savings (marriage, housing, etc) and goals (hobbies, vacations, etc) that we want to achieve.

Let’s say we earned a total of $3,000 from our salary in November 2022. With that, we have now $3,000 available to be allocated to our expenses for the month of December 2022.

Income ($3,000) – Expenses ($3,000) = Zero ($0)

To elaborate on this idea, another way of understanding zero-based budgeting is that it is a method whereby you are mindful of every dollar you earn and spend, and make sure that each dollar is assigned a specific purpose.

Personally, I particularly like this take because of the mindfulness angle plus the focus on more intentional spending – which is really important to me.

It’s like being aware of what you eat when you’re on a diet, right?

Just like you would plan and keep track of your meals, you would plan and keep track of your income and expenses.

Instead of randomly spending money, you would make sure that every dollar is going towards something important, whether it’s saving for a goal, paying off debt, or covering your essential expenses.

Best of all, zero-based budgeting is so simple (and boring) that anyone can do it.

Good things doesn’t have to be complicated to do, or difficult to learn.

It is a well-known fact that money is a topic that causes stress and anxiety for a lot of people.

Even a source of arguments, maybe.

Every single day, there will always be folks who are constantly looking for better methods and systems to help them to manage money.

An extremely important benefit which I’ve enjoyed from budgeting is the elimination of a lot of uncertainty associated with personal finances – the same kind of uncertainty which would bring a lot of stress and anxiety if we’re unprepared financially for life’s situations.

To me, I feel that the realms of personal finance and mental wellness are tightly intertwined. One could definitely affected the other adversely if we’re careless about it.

Many studies have indicated money — including amount of debt, savings and general money management — is the number one source of stress for adults.

A budgeting tool (usually app or software) is simply what we use to implement our chosen budgeting method.

Even simple alternatives such as a pen/notebook or Google Sheets have worked well for many, including myself in the past.

For the longest time, I have been using You Need A Budget (YNAB) and it was suited for me for zero-based budgeting, plus it offers the following

Web-based access (for setup, monthly planning etc)Mobile access (for entering on the go, most effortless method)Automation (calculations etc)

I guess because I have become so used to it, I didn’t think about checking out alternatives.

However, whenever I get a question on this – I would hesitate to recommend YNAB due to the recurring cost of using the web-based software and app .. despite their claims that an average budgeter saves $600 in their first two months.

Over the last year, as I started using Notion to manage increasingly more areas of my personal life, I toyed with the idea of building a functional zero-based budgeting app using the components available within Notion.

For a start, I started making simple templates for tracking expenses, subscriptions, debt, air miles, insurance and even travel budgeting, just to see what the limitations are.

Very quickly, I had a deeper level of understanding of Notion and I went on to build a minimum viable product (MVP) of a zero-based budgeting tool that also had the three features I listed earlier – web based access, mobile access and automation.

My ideas when building it are really simple –

Minimalist design: No frills, no fluff. Notion is customizable and anyone is free to edit the template to their liking later, without affecting the core functionality.Easy to use and understand: If we don’t use it, it is pointless. Don’t be fancy and complicated for no reason. A few minutes (or seconds) each day is all it takes.Dashboard: Instant and complete information at our fingertips with visual feedback for current budget status.Mobile-first support: Many people still trade with laptops and computers now, but mobile-access is crucial on entering transactions on the go.Incorporate the idea of zero-based budgeting: Not just budgeting but goals setting too. A lot I can say for this 🙂Not just a tool but also a conduit to improving mental wellness: Taking the first small step to ease our mind, empower our finances.

By default, Notion looks amazing on the widescreen browser on computers and tablets due the abundance of screen real-estate.

Web-based access

Even better, the Notion app natively also supports convenient and fast mobile-based access – great for entering transactions on the go and making quick checks!

Mobile-based access

As of now, some of the core features include:

Dashboard with automated updatesMultiple accounts supportNet-worth trackingTransfer fundsExpense trackingIncome trackingBudgeting and GoalsReportingDocumentation guidesPre-loaded sample data

More will be added with time such as:

Recurring expenses integrationSubscriptions and trackerInsurance and trackerDebt / Loan and trackerComplimentary reference materials e.g. list of suggested variable expenses, budget/income categories, account typesComplimentary educational materials e.g. why people fail when budgetingComplimentary Health OS bundle (because health is wealth, and health matters costs money)

For now, I’m having fun with my side project but if you’re interested in what I’m doing, feel free to drop me a message any time.

It may be in early-access stage but it is fully functional for what it is intended to achieve.

Say you’re just a student and want to start building a habit of managing your money and saving for your goals, I can give you free access to it today.

Or if you’re in a bad financial situation (negative net worth) like how I was in the past? Or constantly stressed by money matters? I can give you free access to it right now to start making a positive change.

Just drop me a comment or message me on any platform.

It’s hard to believe that it has been quite many moons since I’ve embarked on my own personal finance journey, and it all started with a simple zero-based budget for me.

Folks tend to write and share about savings and investments (which is definitely more exciting and interesting), but the cornerstone which held everything together for me was a humble little budget.