A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Sinking FundA savings pot you build up gradually for a known future expense, like holiday gifts or a car repair, so it does not blindside your budget.
- Irregular ExpensesCosts that show up unpredictably or infrequently, such as car repairs or medical bills, which planning ahead can soften.
- Recurring ExpensesCharges that repeat on a regular schedule, such as monthly subscriptions or annual memberships, whether you use them or not.
- Fixed ExpensesCosts that stay roughly the same amount each month, like rent, insurance premiums, or a loan payment, making them easy to plan around.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Cash FlowThe movement of money into and out of your accounts over time, showing whether more comes in than goes out.
More in Budgeting & Cash Flow
Plain-English education — not personalized legal, tax, or investment advice.