What is zero-based budgeting?

Zero-based budgeting (ZBB) assigns every dollar of your income a specific job so that income minus all allocations equals zero. You are not literally spending everything — savings and investments count as "jobs." Apps like YNAB (You Need a Budget) use this method. ZBB forces intentionality with every dollar and is especially effective for people who feel their money disappears without knowing where it went.