It's not my intention to do so and it's a world I do not want to back into if I can help it.
While I was on welfare, I didn’t want to go into debt no matter how many days I went without food. I knew that if I had a credit card with a AU$500 overdraft I would be paying interest on the debt forever. What I did instead was to setup a VISA debit card with no overdraft. This meant that I couldn’t go below the zero balance level and was an incentive to earn more money and not owe anyone anything.
I know it sounds rather simple and you’re probably thinking “But Shaidon, I am far from going below zero, I’m doing well financially…”.
That’s great!
However, this is not just about being above $0.00. It’s called Zero Balance Level because the "level" is adjustable and personal to what your own needs happen to be.
The Zero Balance Level is any amount that you choose not to go below and can be applied to any bank account. It's not something physically real, just a mind game you can play.
As you start to save money, preferably automatically transferring small amounts of money to an account you won't touch, you'll want to adjust your zero balance level to an amount that you can safely not go under.
So it might be as small as $5 to start with and then slowly increasing it to $50, then $100 and so on as time goes on. In your mind however, you class that amount as $0.00
It's a slow process, but if you have a consistent income it can be quite powerful. Eventually you won't go below having thousands of dollars in multiple bank accounts.
If your income is sporadic, like mine is, you'll be more motivated to find better, more frequent sources of income. Don't listen to those who disparage the 9-5 jobs.
It's important to return above that level as soon as possible, but at the same time not to panic.
This year I have had to reduce the zero balance level downwards a few times as work slowed down this year.
I've had to be flexible, but I have a big zero balance level that I have maintained for the last two years that hopefully I will never go under, or at least not for long.
This concept helps me to be frugal, push me towards my goals and also to be willing to try new things.
That toxic ex partner you know you shouldn’t go back to but they want you back?
No way!
Reduce the chance of going back to zero by deleting all of their photos, their phone numbers, blocking them on all social media. Stop yourself going backwards!
Easier said than done, but it’s he only real way to move on.
That toxic workplace where you were bullied, micromanaged, set up to fail and gave you anxiety attacks even on the weekends and they are now advertising a vacancy?
Hell no! That’s going below zero and you’re worth far more than that.
The zero balance level is the financial equivalent of burning bridges. It’s about setting a point where you can live comfortably, after your bills are paid and treating yourself occasionally while not worrying too much.
At this point I need to state that this is not officially financial nor life advice. Your decisions are your own and you should always see a finacial planner in real life before making any investments or savings plans.
The zero balance level is just a mindset exercise.
As always,
Thanks for reading.
From my heart to yours...
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