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
- Irregular IncomeEarnings that arrive unpredictably or in varying amounts, common for freelancers, commission earners, and gig workers.
- Bare-Bones BudgetA stripped-down spending plan covering only the essentials, often used during job loss or a tight financial stretch.
- Income SmoothingThe practice of averaging out uneven earnings by saving in high months to cover the low ones and keep spending steady.
- Fixed ExpensesCosts that stay roughly the same amount each month, like rent, insurance premiums, or a loan payment, making them easy to plan around.
- Needs vs. WantsThe distinction between spending you truly must cover to live, like housing and food, versus spending you choose for enjoyment or convenience.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
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Plain-English education — not personalized legal, tax, or investment advice.