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
- Value-Based BudgetingA budgeting approach that starts with your priorities and personal values, then funds spending categories that reflect them.
- Savings RateThe share of your income you set aside rather than spend, usually shown as a percentage of your take-home pay.
- 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.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Net WorthWhat you own minus what you owe — the clearest scorecard of your financial progress.
- Emergency FundCash set aside for life's surprises, so a bad week doesn't turn into debt.
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Plain-English education — not personalized legal, tax, or investment advice.