The Zero-Sum Budget: The Essential Tool Every Senior Should Know

Step 2: List All Your Monthly Expenses

Next, jot down everything you spend money on. Start with the basics—housing, utilities, groceries, insurance—and then add in other categories like medications, entertainment, and gifts.

Here’s a sample list:

• Rent/mortgage: $1,000

• Utilities (electric, gas, water, internet): $200

• Groceries: $300

• Medications/healthcare: $200

• Transportation (gas, bus pass, car insurance): $150

• Entertainment/fun: $150

• Savings/emergency fund: $300

• Travel fund: $100

• Gifts for family/friends: $100

Total: $2,500

Notice how every single dollar is spoken for? Nothing is left hanging around without a purpose. That’s the zero-sum magic.