By Mike Peek

The Guard-Rail Budget A Simpler Way to Control Spending By Mike Peek A zero-based budget is a system where every dollar of income is assigned a specific job before the month begins. In theory, this creates clarity and control. In practice, it often relies on income forecasts, constant adjustments, and a level of precision that can feel exhausting. The Guard-Rail Budget offers a different approach. Rather than forecasting income and assigning every future dollar, a Guard-Rail Budget focuses on setting clear spending limits based only on money already on hand. Think of it like driving down a road with guardrails. You’re free to steer as conditions change, but the rails prevent you from veering into unsafe territory. Why We Stopped Using Zero-Based Budgeting We didn’t abandon zero-based budgeting due to its ineffectiveness; in fact, it proved effective for debt repayment when precise control over every dollar was necessary. But once we were debt-free, we needed a new strategy. Our...