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.
- Variable IncomePay that goes up and down between periods, making it harder to predict exactly how much you will have to work with.
- Baseline BudgetA bare-bones plan built around your lowest expected income and essential costs, useful when earnings are unpredictable.
- 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.
- Emergency FundCash set aside for life's surprises, so a bad week doesn't turn into debt.
- 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.