What budgeting method focuses on allocating money to pay for various categories until no funds are left?

Zero-Based Budgeting is a budgeting method where every dollar of income is allocated to specific expenses, savings, or debt repayment, resulting in a budget that totals zero at the end of the budgeting period. This method emphasizes the need to justify all expenses for the budget cycle, ensuring that each dollar is purposefully assigned to reflect priorities and needs.

The primary advantage of this approach is that it can help individuals take complete control of their financial situation by ensuring that they account for every part of their income. By doing so, it encourages careful spending and can lead to increased savings or debt reduction. This method is particularly useful because it forces budgeters to critically evaluate their spending habits and prioritize their financial goals.

The other options present different budgeting techniques that may not focus on the precise allocation of every dollar in the same manner. For instance, the Pay Yourself First Method involves saving a portion of income before addressing expenses, while Envelope Budgeting typically uses physical envelopes to categorize and limit spending in various areas, and the No Budget Method lacks a structured approach to managing income altogether.