Zero Based Budget Template and a Worked Example
A zero based budget template is simpler than it sounds. It is one table with your income at the top, every category underneath, and a final line called left to assign. Your job is to fill in the amounts until that last line reads £0. This guide shows the layout, fills it in for an illustrative month, and walks through each step so you can copy the method for your own pay.
What the template looks like
Every zero based budget template follows the same shape. Income goes in first, the categories follow, and the bottom two rows show whether the plan balances. The table below uses an illustrative month with £2,400 of take-home pay. All the figures are examples, so swap in your own.
| Group | Category | Amount |
|---|---|---|
| Income | Take-home pay | £2,400 |
| Bills | Rent | £900 |
| Bills | Council tax and utilities | £250 |
| Spending | Groceries | £320 |
| Spending | Transport | £160 |
| Spending | Phone and subscriptions | £60 |
| Spending | Fun and eating out | £200 |
| Sinking funds | Car, Christmas and gifts | £160 |
| Savings and debt | Emergency fund | £150 |
| Savings and debt | Debt payment | £200 |
| Total assigned | £2,400 | |
| Left to assign | £0 | |
"Total assigned" is every amount above it added together. "Left to assign" is your income minus that total. In a finished plan it always reads zero.
How to fill in the template, step by step
Work down the template in this order. The bills go in early because they are the hardest numbers to move.
- Enter your income. Put your take-home pay in the income row, after tax and National Insurance, not your gross salary. In the example that is £2,400. If your pay varies, use a cautious figure from recent months.
- Add the bills. Rent, council tax, utilities and anything else fixed go in next. In the example, rent is £900 and council tax and utilities together are £250. These rarely change month to month, so they form the foundation.
- Add everyday spending. Groceries (£320), transport (£160), phone and subscriptions (£60) and fun (£200) are estimates you can check against your last two or three months of statements before you commit to them.
- Add sinking funds. Costs that arrive once a year, such as Christmas or a car service, need money set aside each month. The example puts £160 into car, Christmas and gifts. Our guide to sinking funds shows how to work out the monthly figure.
- Assign savings and debt. The emergency fund gets £150 and the debt payment £200. These are categories like any other, so plan them rather than hoping something is left over.
- Check the bottom line. Add up every amount to get total assigned. In the example it comes to £2,400, so left to assign is £0 and the month is balanced.
What to do when left to assign is not zero
There are two ways to miss zero, and both are useful to spot early.
If left to assign is above £0, you have unassigned money, and that is the money that quietly disappears. Give it a job: savings, an extra debt payment or a sinking fund. Had the example shown £180 spare, that £180 would go to the emergency fund or the debt, not float through the month.
If left to assign is below £0, you have planned to spend more than you earn. Suppose council tax and utilities rise by £50, so the total becomes £2,450 and left to assign reads -£50. Cut fun and eating out from £200 to £150 and the template balances again. Seeing that gap on paper is far better than finding it in your account at the end of the month.
How to do it in the planner
You can build a zero based budget template in any spreadsheet, and our free starter budget is a place to begin. If you want the left to assign figure to update as you change amounts, the All-in-One Budget Planner (£19.99) keeps a live "left to budget" total in one Google Sheet. Bills, debt, savings and sinking funds all update together, so moving money between categories takes a couple of edits rather than a rebuild.
The AI coach is available in the planner for plain-English feedback on your plan. It answers a fixed set of one-click questions, and it only sees figures and first names, never the full picture. Nothing is sent to us. The planner lives in your own Google account and never connects to your bank. If you would rather plan one pay packet at a time, the Paycheck Budget (£13.99) is the one to look at.
If you are building the sheet from scratch, our guide to building a budget in Google Sheets covers the formulas. If your pay is irregular, budgeting by payday shows how to build a fresh template each time you are paid. Fill the template once, then let the total do the checking.
Frequently asked questions
Is a zero based budget template free to use?+
Yes, the method costs nothing. Any spreadsheet with an income row, one row per category and a left to assign cell will do the job. Paid planners simply automate the sums for you.
What if I forget a category?+
Missing categories are the usual reason a budget breaks. Go through your last few months of payments and check that each one has a line in the template. Anything you overlook will show up as an overspend, which is a sign to add a line for it next month.
What if left to assign is negative?+
It means you have planned to spend more than you earn. Reduce a flexible category, such as fun or eating out, until the figure returns to zero. Try not to cut savings or bills first unless you have no other choice.
How often should I fill in the template?+
Each time you are paid, or at least once a month if your pay is steady. Starting from the new income figure keeps the plan tied to real money rather than a guess.
This is general information, not financial advice.