Zero-Sum Budgeting: Way To Escape From Pay Check To Pay Check Life

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Financial planning is important not only for the businessman but for the individuals too. It is all about how you track the influx and out-flux of the money you are earning. However, you can manage the monthly cost easily if you have a “constant” source of income. 

In case of those who are unemployed or doing a part-time job, dealing regular cost becomes a hassle. This is all happening because of the Inconsistent income. 
For example, you are running a website and some of your clients asked an additional month for the payment. It clearly shows that the income of this month is not similar to the last months. 
No disbelief that it can add the financial problem. You are not able to save money for the short term emergency, retirement, travelling, and entertainment. This one is the biggest challenge most of the freelancers or part-time or self-employed workers face.
There are multiple ways through which you can manage the expenses as well as funds your retirement savings too. We have mentioned two major one below:
• Live within your means: In this, you can save money, if you can cut down the unnecessary cost like partying, eating outside and impulse purchasing. 
• Scrounge from lending methods: You can take assistance with loans. For instant cash, you may approach online lenders who provide loans for Unemployed people in Ireland. Though you can reach the traditional lenders too. But it may take time because of the prolonged documentation. 
You can follow any of the above-mentioned methods. But for long-lasting solution “ZERO-SUM BUDGETING” method is useful. 
Let’s learn more about it like what it is and why it is an awesome technique
What is Zero-Sum Budgeting? 
The main concept behind this planning is utilising the previous month’s income to meet the expenses of current month. 
For instance, you have earned €4000 last month and your monthly expenses are €3200. Now, remaining amount, i.e. €800 can be utilised to meet the other’s cost like savings for retirement and unexpected situation. 
In this way, you can avoid the monthly paycheck living. There are many benefits that you can get if you follow this technique. 
Let’s have a look at them… 
Benefits of Zero-Sum budgeting tactic 
We have mentioned the top advantages of this method. 
1. Provide Relief from intermittent income 
Self-employed people face several issues like: 
• No guaranteed income 
• Lots of potential costs 
• Irregular Payments
These are the common ones, but with zero-sum financial plans, you can easily deal with these issues. All you have to depend on the last month’s income. 
2. Help you to focus
Running a business is not an easy task. You have to take care of many things apart from monitoring the income. But how much you earn is matter but if you consider both you may able to lose focus. But Zero-sum planning helps you to focus on the business more than managing the cost. 
3. Help to make better planning 
When you make the plan by considering the money you have earned last month will help for the better money management. It can provide you with benefits in two ways:
• Realize the spending
• The realization of the save money
These are the two major benefits you can get from this method. 
4. Best for the long term plans 
Better saving means you are going to achieve the goal fast and quick. Suppose you have a plan to buy a car or to take the business at the next level then you can save money according to it. Saved this month’s income and use the last ones. It will undoubtedly lead you for better savings. 
If for some reason you will not able to fulfill the money requirement, then you can use the borrowing methods like loans. If you are worried about the credit score, then personal loans with bad credit score may be the right choice. 
In this way, you will never run out of the money to fulfill your dreams.
It is the whole concept of Zero-Sum Budgeting. It works wonder not only for self-employed people as well as for full time too. Follow it properly and live a financially independent life without worrying about the payment every month. 
Zero-sum budgeting is one of the best ways to manage finance while you are self-employed. To know how to follow it, read this blog. 

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