Planning for January 2026: Zero-Based Budget as a First-Time Homesteader
Well friends, I finally sat down and got my planning budget done!
I decided to go with a zero-based budget format because I liked the idea of putting each dollar to work.
Two Expense Categories
Living off-grid means different types of expenses. I split my budget plan into two categories: Fixed expenses and Variable expenses.
My fixed expenses are costs that stay the same, no matter the weather or usage. This includes things like car payments and utilities. Following is my list of fixed expenses:
Cell Phone: $130
Car Payments: $1140
Trailer: $1000
Insurance: $285
Medical: $65
Waste Management: $47
Internet: $120
Subscriptions (i.e., streaming services, etc.): $58
Total: $2845
My variable expenses include the expenses that do change based on weather and use. Following is my list of variable expenses:
Fuel (gasoline, kerosene, diesel): $490
Laundry: $120
Groceries: $800
Home Improvements: $2000
Propane: $100
Dining out/entertainment: $345
Total: $3855
Whoa. Those variable expenses are out of control!
After making this budget plan, I realized we need to figure out how to lower those variable costs, especially groceries, each month.
Home improvement is a difficult one to lower because we are building our property from the ground up. Will was open to spending less than $2000 each month, and he has also started using cashback apps to earn some money back on his purchases.
Savings
I need to start saving for this year. We have a big vacation planned for the end of the year. It’s a mix of holidays, family birthdays, and an anniversary celebration. I'm planning to save an outrageous $10K for that vacation. It sounds like a wild goal, but if we spend with intention over the next year, we might reach it!
I also need to start saving to build my garden. We need tons of topsoil and manure. Plus, we’re building the greenhouse, garden beds, and fencing. I'm going outrageous again and budgeting $5K for this. I have six months to get there, and once complete, I plan to roll over what I don't use into that vacation fund.
This seems daunting doesn't it. But the beauty of zero-based budgeting is knowing exactly where each dollar is going. It also forces you to save, as I had completely forgotten about financing my new garden.
Our income is fairly fixed based on our retirement checks, and I'm planning to pursue some side income to boost that vacation fund.
Here we go!
I have my very first budget plan as a first-time homesteader!
There may be expenses I've missed and I'll catch those when I do the budget overview at the end of the month. In the meantime, I'm saving those receipts and Will has been very helpful keeping me updated on his online purchases.
Additionally, I decided to use the notes section to track annual expenses (i.e. car tags, memberships, etc.) and start envelope challenges to save for those. I'll be creating some saving challenges soon and putting them on my Ko-fi page as free downloads.
I can't wait to see how this budget evolves as we continue growing our homestead!!
Resources:
Free digital download of my planning budget on my Ko-fi page: https://ko-fi.com/s/296a2ecf34
I used Canva to create this, feel free to edit and make it your own!
Want to learn more about Zero-Based Budgets? I use the Udemy app which offers a lot of free courses on finances including zero-based budgeting.
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