This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
A zero balance is what you consider to be the amount of money that is in your bank account that you do not touch; it can also be your emergency-fund.
Some people always want to have a certain amount of cash on them physically, or in their bank account. Establishing a monetary number that you want to maintain in your bank account cultivates a habit of financial discipline and makes it to where you never have less than a certain amount of money in your account.
The benefits of having a zero balance include the following:
Avoid overdraft fees
Maintain a certain level of savings in your bank account for emergencies
Always be certain of the least amount of money you have in your account
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If you have never thought of having a zero balance, then you can aim to start today. How much would you like to establish as your zero balance? $500? $1,000? More? Choose a number that works for you, and make it a goal to not touch this money; this money is your zero balance. This is the amount you consider to be $0 — even though it is more than that.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.