What’s Your Zero Balance?
How much would you like to establish as your zero balance — money you consider to be zero in your bank account? $500? $1,000? More?
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