A Simple Example of Zero-Based Budgeting

A Simple Example of Zero-Based Budgeting

Whether you are considering zero-based budgeting for the first time or have an existing zero-based budgeting process in place, there are several key factors to consider. Deloitte’s digital approach to zero-based budgeting can help you decide whether it is right for your organization.

Costs to consider

Whether you’re just starting out or are looking to make your money work harder for you, zero-based budgeting can help. It can give you an idea of where your money is going, as well as show you where you can make cuts. It’s also a great way to see  how much of your income goes toward taxes.

When creating a zero-based budget, you will need to figure out what your needs are. For example, if you work a commission job, your income is dependent on sales. This means that you’ll need to determine how much income you’ll bring in, as well as what your sales goals are.

If you’re just starting out, you can use a spreadsheet or software tool to create a zero-based budget. You can then break down expenses in as much detail as you like. You can decide to prioritize expenses by importance, or by cost category.

In addition to creating a budget, you can also evaluate your spending habits. This can help you make more rational decisions about your income. It can also help you cut down on impulse buys.


Compared to traditional budgeting, zero-based budgeting is more complex and resource-intensive. It requires a detailed review of every budget …

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