Glossary
Zero-Based Budget
A zero-based budget assigns every dollar of income a specific job — spending, saving, or debt payment — until your income minus your allocated amounts equals exactly zero. No dollar is left "unbudgeted."
Why it matters
Traditional budgeting often leaves a vague surplus that slowly disappears. Zero-based budgeting forces intentionality: every dollar has a purpose, whether it's rent, groceries, or a sinking fund for car repairs. This level of specificity tends to surface hidden waste and accelerate progress toward financial goals.
Example
$5,000 income: $1,500 housing + $600 food + $300 transportation + $400 insurance + $200 entertainment + $500 debt payment + $1,000 savings + $500 miscellaneous = $0 remaining.
How Ray helps
Ray shows where your unallocated money goes each month by categorizing every transaction. Try to find the leaks in your budget that a zero-based approach would plug.
$ ray "where did my unaccounted-for spending go last month?"Related terms
Budget
A budget is a plan for how you'll allocate your income across spending categories, savings, and debt payments over a set period — usually monthly..
Cash Flow
Cash flow is the net amount of money moving in and out of your accounts over a period.
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.
Sinking Fund
A sinking fund is money you save incrementally for a planned future expense — like a vacation, insurance premium, or holiday gifts — so the cost doesn't hit all at once..
Net Income
Net income is your take-home pay after all deductions — federal and state taxes, Social Security, Medicare, health insurance premiums, and retirement contributions.