You give every dollar a job until there's nothing left unassigned. Income minus every assignment equals zero — not because you spent it all, but because saving and debt payoff are assignments too. Nothing is allowed to just float.
Zero Does Not Mean Empty
This trips people up. Hitting zero doesn't mean the account is drained — it means no dollar is sitting there unlabeled. Money you've assigned to savings is assigned. Money you haven't assigned is the money that disappears.
Why It Catches Leaks Others Miss
Percentage frameworks tell you roughly how much should go where. This one forces you to name the actual destination. That extra step is what surfaces the spending you'd otherwise never account for.
It's the difference between knowing you've got about enough hay and having counted the bales.
The Cost Is Upkeep
It takes more attention than a three-bucket rule, especially the first couple of months. Plenty of people use it to find their leaks, fix them, and then settle into something lighter.
If your income is irregular, assign against your floor month and handle the surplus as its own decision.
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