Zero-based budgeting is a financial planning method where every dollar of income is allocated to specific expenses, savings, or debt repayment. Unlike traditional budgeting, which adjusts previous budgets, zero-based budgeting starts from a "zero base." Each expense must be justified for each new period, ensuring that all spending aligns with current goals and priorities. This approach encourages careful evaluation of all costs, promoting accountability and efficiency. By requiring justification for every expense, individuals and organizations can identify unnecessary costs and reallocate funds to more important areas, ultimately leading to better financial management and resource allocation.