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
- Variable IncomePay that goes up and down between periods, making it harder to predict exactly how much you will have to work with.
- Income SmoothingThe practice of averaging out uneven earnings by saving in high months to cover the low ones and keep spending steady.
- Baseline BudgetA bare-bones plan built around your lowest expected income and essential costs, useful when earnings are unpredictable.
- Irregular ExpensesCosts that show up unpredictably or infrequently, such as car repairs or medical bills, which planning ahead can soften.
- Cash FlowThe movement of money into and out of your accounts over time, showing whether more comes in than goes out.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
More in Budgeting & Cash Flow
Plain-English education — not personalized legal, tax, or investment advice.