Step 1 to Debt Freedom: How to Create a Zero-Based Budget

Let’s face it—debt has a way of making you feel like you’re constantly trying to catch your breath. I know because I’ve been there—credit cards, unexpected bills, and the exhausting mental load that comes with it all. But if you’re here, you’re already taking the first step: acknowledging it and deciding you’re ready for something different.

Today, I want to share how I finally started making real progress, one small habit at a time.

debt.

yuck.

Okay, if you’re new here, welcome to my Finance Journey.

We are getting out of the rat race, finding financial freedom, and slowly learning to steward our money well. We’re investing, we’re saving, we’re eating good food, and—one day soon—we’ll be traveling the world together as a family.

But first, we have to tackle that debt, friend.

Listen—your number? It can’t shock me. Because let me tell you, I became a credit card girly.

I turned 18, got approved for my very first credit card, and felt unstoppable.

Growing up, my mom never had credit cards. She could never get approved, and it always seemed like such a luxury—like something for the rich and famous.

So when I finally got approved, I felt on top of the world.

What did I do after that?

I got 17 more.

Yup, you read that right.

I opened up 17 credit cards.

So again, your number can’t scare me—because as you can probably imagine, my number is high.

But that’s okay.

Because we’re paying all of that off—one payment, one budget, one month at a time.

All the debt that makes you feel yuck.

First things first—you have to know where all your money is going.

It’s time to build a healthier relationship with your money. We’re going to treat it like any other relationship we value and want to grow.

We’re going to spend time with it, thank God for it, respect it, and take care of it.

By understanding it fully, we’ll know what’s leftover (if anything—some of us may need to fine-tune and redirect before we get the ball rolling).

To do this, we need to create a zero-based budget.

I don’t love the word budget, so I call mine my Money Tracker.

You can easily make one on a piece of paper each week—that’s actually how I started—or you can make it on Excel if you’d rather.

If you’d like, you can even use mine. Just drop your email below, and I’ll send it straight to you.

How to Use the Money Tracker

First, we’re going to list out all of our bills—and I mean all of them, even that little $.99 bill to Apple for extra storage.

I went through two months of bank statements and wrote down everything that came out regularly so I wouldn’t miss a thing.

Next, we’re going to add in our income.

All the money coming in for that pay period, even small amounts you might make from selling things, side jobs, or little extra gigs.

Now we’re going to subtract all of the bills from our income.

This includes all your regular, recurring bills—like your phone, internet, utilities.

If your power or gas bill fluctuates, just average it out (I like to round up a little, just to be safe).

We’re not done.

Whatever’s left after the bills are paid is what you’ll use to create your zero-based budget.

Zero-Based Budget

We’re going to take whatever is left, split it up, and give it a job.

Budget how much you’ll need for:

food
gas
pet food
diapers, wipes, etc.
kids’ sports fees
extra add-ons

Extras can be birthdays, holidays, or any unexpected expenses. I always build in a little buffer so if something pops up, we’re not stressed. If you don’t end up using it, you can tuck it away for next time.

Then, whatever is left becomes your debt money.

That’s the money you’ll use to start paying this stuff down.

I like to sit down with my Money Tracker once a week. It keeps me accountable, helps me stay on track, and if I overspend a little, I have time to course-correct.

Now, I do want to say something.

I can’t recommend having some kind of savings enough.

That amount is personal—some people feel good with $1,000, some might need more.

Having it means if an emergency comes up, you don’t have to turn around and rack the debt back up again.

Any “extra” I didn’t end up using, I put toward savings. It’s usually not a lot, but it’s something—and it feels good to see it grow.

If you haven’t read Dave Ramsey’s Total Money Makeover, I highly recommend it. It’s free on Kindle Unlimited right now. I don’t personally vibe with every part of it, but it’s an eye-opener, and it will definitely motivate you to take charge of your finances.

He explains debt, zero-based budgeting, and his “baby steps” in detail. You’ll get a feel for how you want your journey to look by reading it.

I got the book from my sister-in-law, passed it to my cousin, and she passed it to a friend—and all our journeys looked a little different.

So I’d encourage you to check it out if you’re ready to say goodbye to debt and start building freedom.

Well, now you have your handy-dandy Money Tracker ready to go.

Once you knock out your first debt, meet me here for the next step: the debt snowball method—so we can start picking up speed and finally be free of this mess.

Debt doesn’t get the final say over your story. Every small choice you make—every budget meeting, every payment, every moment you decide not to give up—is moving you closer to freedom. I’m cheering you on, and I’m so glad we’re in this together.