How to Plan Your Year with Annual Budgeting
📅 Planning Your Year with Savings
Moving beyond your monthly spending is key to reaching big financial goals. ZeroBuckets' Annual Budget is designed to help you plan for major expenses and savings goals by focusing entirely on your savings accounts.
Here is the simple concept behind your annual plan:
1. Savings Accounts as Your Annual Budget Source
Unlike your monthly budget which tracks cash flow, the Annual Budget treats your savings accounts as the primary source of funds:
- Inflow (Income): Any money added to your savings account is treated as income for your annual budget.
- Outflow (Expense): Any money leaving your savings account (to pay for a large goal, like a vacation or down payment) is treated as an expense for your annual budget.
2. Zero-Based Allocation for Goals
Just like your monthly budget, the Annual Budget is zero-based. This means every dollar that flows in and out of your savings must be accounted for by allocating it to a specific goal or "bucket."
The major difference is the ability to account for funds you already have:
- Allocate Existing Funds: If you have a big goal, such as a $10,000 vacation, and you've already saved $5,000, you can indicate that existing $5,000 on the goal's bucket.
- Accurate Planning: This immediate allocation ensures your yearly budget is instantly accurate, showing exactly how much more you need to save to hit the $10,000 target by year-end.
By tracking the inflows and outflows of your savings and assigning them to goals, ZeroBuckets helps you plan and fund your entire year upfront.
