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
- Zero-Based BudgetingA budgeting method where you assign every dollar of income a job until nothing is left unassigned, so income minus all allocations equals zero.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Cash StuffingA hands-on version of the envelope method where you physically divide cash into categories to make spending feel more deliberate.
- Discretionary SpendingMoney spent on nonessential things you want but could go without, like dining out, hobbies, or entertainment.
- Variable ExpensesCosts that change from month to month based on your choices or usage, such as groceries, gas, or electricity.
- BudgetA plan for the money you already earn — deciding where each dollar goes before it disappears.
More in Budgeting & Cash Flow
Plain-English education — not personalized legal, tax, or investment advice.