Zero-based budget
A budget where you give every dollar of income a job, so income minus everything you assign equals $0.
In a zero-based budget, you start with the money you expect to bring home this month. Then you assign all of it to bills, spending, savings and debt until nothing is left unassigned. Zero means every dollar has a plan, not that your account is empty.
This method takes more time than a percentage rule, but it shows exactly where your money goes. When something costs more than planned, you move money from another category to cover it.
Example
Take-home pay of $3,600 split as $1,500 rent + $400 groceries + $300 utilities and phone + $250 transportation + $350 fun money + $500 savings + $300 extra debt payment = $3,600. $3,600 − $3,600 = $0 left to assign.