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.
- Annual ExpensesCosts that come due once a year, like insurance renewals or property taxes, that are easy to forget when budgeting monthly.
- Emergency FundCash set aside for life's surprises, so a bad week doesn't turn into debt.
- Variable ExpensesCosts that change from month to month based on your choices or usage, such as groceries, gas, or electricity.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Income SmoothingThe practice of averaging out uneven earnings by saving in high months to cover the low ones and keep spending steady.
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Plain-English education — not personalized legal, tax, or investment advice.