Zero sum budgeting - What is it?

It means, spending the exact income: not more than the income.

A zero-sum budgeting is quite interesting. Here you tell each dollar where it should go. Suppose, your income is $2000 and at the end of the month, you save $300. Now, in a zero-sum budgeting, you can't allow this money to sit idle. You have to make it work for you.

Use this money for paying off debts or building an emergency fund or investing. The choice is yours. Your income minus expenses should be equal to zero.

You can also send this amount to a savings account designated to build up an emergency fund. I also find this budget quite interesting!