Zero-based Budgeting
With zero-based budgeting, accountants use zero as the baseline, and this means every line item in the proposed budget must be justified from scratch. Not using last year’s numbers as the baseline for next year’s projection (usually the practice). Zero-based budgeting is more ‘cumbersome,’ but it forces scrutiny and provides clarity.
I had applied “zero-based budgeting” in my own life when I moved to Sweden. I restarted on a clean slate, with all previous commitments gone, and with what I can then systematically add back into my life.
I declared myself an early retiree (financially free with zero debt, and quit my job, which I had loved and held for almost 12 years in the same company). I wiped clean my Marvin e-book reader app of hundreds of e-books and only added the one (or few) I want to read at the moment. I wiped clean my LinkedIn profile and ‘stripped’ of all qualifications, certifications, and declaration of past work experience. I did many things, including rebuilding my personal library with careful curation. I spend my days studying Swedish now that I’m not working. Still, it’s not only Swedish that I’m learning; I’m also polishing my existing repertoire of project management, design, presentation, business analysis—the stuff I deemed still a great use of my time, energy, and resources. To maintain clarity and focus, I will not over-commit.
I will continue to reverse pilot the things I do for myself and others and see if I (or they) miss them or not. If by removing or scaling back on the activity bears no or little adverse effect, I can then safely classify it as non-essential, and I can ‘divorce’ myself from it. At the same time, should I someday wish to work again, I will be sharp and ready.
This post is inspired by Greg McKeown’s Essentialism.
