Zero-based budgeting

A W. P. Carey management expert shares who can benefit from zero-based budgeting and how to create a budget that works for you.

In this story published Aug. 1, 2025, on WalletHub:

For me, the key is being realistic. Some expenses, like utilities, fluctuate, so I always plan for the higher months and adjust as I go. I also make sure to include entertainment or "fun money" in my budget. Cutting it out completely never works long-term, but setting aside a small, intentional amount for things like dinners out, concerts, or streaming makes it easier to stick with the plan. And finally, I review my budget every month and tweak it as needed. Zero-based budgeting only works if you treat it like a living plan instead of a one-time exercise.

— Todd Altomare, instructor of management and entrepreneurship