"What is a Zero-Based Budget?" #AskRachel

Is it possible to save while you are paying debt off

Greetings from Puerto Rico.
I've been on baby step 2 since January 2017. Yesterday I've noticed that this month I committed the mistake of leaving my checking account to zero. Well it's because I've been very intentional about getting out of debt. 😮 Thank goodness for cash and my emergency fund. Although I did not have to use my emergency fund this month.

Hi Rachel, So I have been following you and using everydollar for monthly budget for last 4 months. My question to days is something I experienced in my budget 2 months ago. So I had extra money leftover, i applied to the debt, but then a vendor cashed his check which I gave it to him like 5 months ago, which of course threw me off. Not by much, just a little(TG!) how do you think I can avoid this in the future?

We're in baby step 2. We have been paying roughly $2,000 per month towards debt which is almost half of our income. How much is appropriate for each of us to have for spending money? $0 seems a bit unachievable.

how do we do this if we have a baby on the way and are still in debt with no emergency fund yet?

We have been struggling financially for the last 3 years. Made some extremely poor choices and are literally living check to check. Stress and anxiety is to much to bear. We are thinking Bankruptcy may be out best bet. Any advise or precaution we may be able to plug in to get some breathing room. Deeply grateful for your time.

Both my husband and I get an allowance each month. Should we itemize what we spend it on in our budget under our allowance?

ASK RACHELCRUZE-video request - how to manage friendships when making sacrifices like socializing less to save money, has an effect on your friendship.

This was so helpful! I had the same question about zero based budgeting as well! Thanks Rachel!

This seems to be a really common misconception. I literally have a line item in my budget for "miscellaneous". It's not much, but it's a small cushion for my bank account and I act like it's not there. Whatever is leftover in this buffer category (or any category) at the end of the month goes to debt.

Love you RC

I was nearly at zero after getting back from Germany and Italy. 😁

I thought the $1,000 in baby step one was 1.For emergencies 2. Plus two so you don't get charged bank fees.

If you have to dip into the emergency fund for something, do you pause your debt snowball until you pay the emergency fund back?

Rachel - I have a question.  Where do you put the money you have set aside for various funds?

Hi Rachel. My wife and I just discovered your channel and we love it. Thank you for all the great videos. Can you tell me what to do if your income fluctuates? How do you incorporate that into your budget? Thank you very much.

Hi Rachel. My wife and I just discovered your channel and we love it. Thank you for all the great videos. Can you tell me what to do if your income fluctuates? How do you incorporate that into your budget? Thank you very much.

Why did you get rid of your other zero based budget video? The one where you were at the bottom of the stairs with a chalk board? I was referring this to countless young people and now it's gone!

So lets say there is money in each envelope for food, kids, etc and the money in the food envelope runs out before the next pay period, but there is still cash in other envelopes, how do I go about food money if some food is needed? Do I then draw from other envelopes?

My budget only gives me $50 a week for all spending including groceries. my problem is i find every week something comes up that makes me go over budget like my shoes will break or my tires need replacing or its someones birthday. i keep going over my budget and then i have to deplete my emergency fund. any advice??

U are really alsom Rachel I love watching your videos. U give the people such great knowledge on how to become rich and successful. Keep up the good work.

I have to keep at the minimun $5 in my checking account so as a catagory in the budget have one marked for the last 5 bucks I need to keep in my bank to not go below the thresh hold and that way my accpunt doesnt go to zero but my budget does?

Actually it's the first day in June...

Hi Rachel. Here's my question. We live several states over from family and we love to travel. We currently use one credit card that earns frequent flier miles. We pay it off every month. I know you are against credit cards. Even this use of them?

How much should my emergency fund be since I work my own business from home and I never know how much I'll make each month? It has been enough to pay living expenses but not yet enough to pay the debt I got from losing my second business. (My work is still more than I could make at any other type of job that i know of, that I'm qualified for)

should you build up an emergency fund first or pay down debt

Hey Rachel, you sound good thank you!