Short answer
Zero-based budgeting means giving every unit of your income a specific job, so that your income minus your planned spending, saving, and debt payments equals zero. It doesn't mean spending everything, because savings is one of the jobs. It gives you tight control over your money but takes more time than simpler methods.
How it works
List your income for the month, then assign all of it to categories until nothing is left unassigned. If you earn ₦350,000, your categories must add up to exactly ₦350,000.
An example
On ₦350,000:
- Rent: ₦100,000
- Food: ₦70,000
- Transport: ₦30,000
- Data and bills: ₦20,000
- Savings: ₦60,000
- Debt repayment: ₦30,000
- Personal spending: ₦40,000
That adds up to ₦350,000, so every naira has a job.
Why people like it
There's no "where did it all go?" at the end of the month. It's especially good for paying off debt or building savings quickly.
The downside
It takes time to plan each month, and you have to track your spending closely to stay on plan.
With irregular income
Assign only money you've actually received, not money you expect. When a new payment arrives, give it jobs then.
Zero-based or 50/30/20?
The 50/30/20 rule is faster to set up. Zero-based gives more control. Many people start with 50/30/20 and move to zero-based once tracking becomes a habit.
Doing this in Gripd
Gripd tracks spending by category, so you can see how each one compares with its planned amount. On the Basic and Pro plans you can set a spending limit for each category and get warned before you pass it.
Last updated 29 Sept 2026
Related questions
How do I budget with irregular income?
Budget from your lowest typical month, not your best one, so your essentials are always covered. In good months, put the extra into a buffer that tops up the lean months. Think in percentages of what actually comes in rather than fixed amounts, and review every month.
Read the full answerHow do I make a budget?
Start with how much money you realistically expect this month, list your essential costs first, then decide how much goes to savings and how much is left for everything else. Track your spending against those amounts during the month. Review at the end of the month and adjust, because the first budget is rarely perfect.
Read the full answerHow do I set a spending limit for a category?
Look at what you spent in that category over the last one to three months, then set a monthly limit slightly below your average, so it's a real target but still achievable. Track spending in that category as you go and get a warning when you're close. Review the limit each month and adjust it.
Read the full answerHow do I stop overspending?
Start by tracking every expense for a few weeks to see where your money actually goes, then set a firm limit for your biggest problem category. Add small speed bumps like a waiting period before non-essential purchases, and move savings out on payday before you can spend them. Overspending is much easier to fix once it's visible.
Read the full answerTrack it all in one place
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