Robert Lee Breaks Down the Real Benefits and Drawbacks of Zero-Based Budgeting

Pepperdine Graziadio Business School faculty member Robert Lee was recently featured as a financial expert in WalletHub’s latest discussion on zero-based budgeting, offering practical guidance for individuals working to strengthen their financial health.

In the feature, Lee explains that zero-based budgeting (ZBB) can be especially effective for people on tight budgets or those striving to pay down debt. By assigning every dollar to a specific category, ZBB creates clear boundaries that help individuals stay disciplined and financially responsible. The method is also well-suited for those who naturally appreciate structure and detailed tracking, allowing them to monitor their finances down to the dollar.

However, Lee notes that zero-based budgeting isn’t one-size-fits-all. Individuals who dislike tracking expenses may find the method overly restrictive, and those with fluctuating income, such as freelancers or sales professionals, may struggle to maintain a consistent budget month to month.

For those ready to adopt ZBB, Lee recommends starting with realistic and attainable goals. He advises building in small buffers as users strengthen their budgeting skills and gradually refining spending categories over time. With consistency and discipline, Lee emphasizes, zero-based budgeting can become a powerful tool for achieving long-term financial stability and success.

Lee’s contribution adds valuable perspective to WalletHub’s expert panel, helping readers better understand how to determine whether zero-based budgeting aligns with their financial needs and lifestyle.

Read the full article here.