Recently someone asked to me write about zero based budgeting in budgetEDGE (zero based budgeting is the idea that you should allocate all of your money each month to some purpose, with nothing left over (hence the zero in the zero based budgeting)).

That's easy to do in budgetEDGE.

1) Enter your income and expenses as usual. If you have money left over it can be used for debt payoff (2) or savings (3).
2) Debt payoff: If you are carrying a balance on your credit cards or other term or revolving debt accounts, apply the residual there. budgetEDGE can track your declining balances for you.
3) Savings growth: If you are lucky enough to have no debt (or you simply choose to keep more of your money in interest bearing accounts), then apply your excess funds to savings. budgetEDGE will keep track of its growth.

The most important thing to keep in mind if you are going to follow this budgeting method is that your final residual balance will need to be managed very carefully because it will likely show negative numbers fairly often. You may find yourself transferring money from your savings account to your cash account regularly (something else the budgetEDGE can manage for you).

If you are ok with maintaining an active budgeting method (and are excited by the thought of additional yield on your idle cash), then zero based budgeting may be the right fit for you.

Try it now on budgetEDGE.

Hey everyone,

Just as we were planning to write about our latest updates to the site, it went down. We're looking into it now to see where the problem lies. We don't expect to be down for long, but in case we get stuck neck deep in code, check back tomorrow (hope it doesn't take that long to fix though).

Thanks for your patience!

the budgetEDGE team

UPDATE: I don't know exactly what happened, but we're back...

We've added some functionality to the credit card mini-budgets so you can adjust the final amount owed to your CC company (in case you don't want to go back and add or delete any individual expenses).

Also, we closed a few bugs and added links to Digg and other sites so you can help us spread budgetEDGE to even more people.

Hi all,

We've been busy here at budgetEDGE these last few weeks. While most of our work went towards fixing bugs and some UI tweaking, we also added new functionality to credit card balance tracking and long term debt tracking.

First, let's hit the highlights of the credit card functionality. Since budgetEDGE already tracks cash movements in and out of your primary bank account, we thought it would be useful to add non-cash expenses to the mix, so you could get a better understanding of how your cash is being used.

One key way to do that is to provide a function for you to add credit cards and track how the balance is expected to change over time. We accomplish this by tracking the outstanding balance owed and allowing you to create recurring or non-recurring expenses for the credit card (like $50 every Saturday for dinner) that in total show whether your payment efforts are making a dent against your debt.

Here's how you can access this feature.

When you are creating expenses you will see a small check box in the new expense popup bubble that says "Track this expense as a credit card." When you select that feature, budgetEDGE will create a new tab for you with the same logical flow that the income, expenses and savings tabs have (namely, you click the Add expense item on the top right hand side of the panel, give the expense a name, a recurrence and an amount --voila!). You should have a general idea of your interest rate, the date that your payments are due and when your account closes for the month. If you don't know, grab your last statement; it'll be there.

If you've already created your credit card expense, then click on the little M inside of a circle next to the credit card's name on the expense panel. The same popup bubble will appear, allowing you to begin tracking your progress against your credit card debt (assuming you have any, that is...).

Next, let's talk about assets and liabilities. We have put together a rough asset and liability engine that provides you with information about the current value of the things you own, versus the money you owe. Each of these functions lets you enter a starting value, a current value, a rate of growth / interest, etc. to give you an idea of your non-cash financial situation. We have a host of improvements planned for this space, but you'll have to wait on those (sorry!).

In other news, we've been picked up by the Museum of Modern Betas, Killerstartups.com, Happycodr, and simplespark.com. Thanks to you guys (where ever you are!) for letting the world know we exist.

I've sent two polite emails to personal finance blogs (www.my-personal-finance-blog.com and www.gradmoneymatters.com) in the hope that they will be able to give us feedback about functionality they would like to see in future versions of the site. Who knows what they'll say.

Until then, best wishes from the budgetEGDE team!