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
- Negative Cash FlowWhen you spend more than you bring in during a period, forcing you to dip into savings or take on debt.
- Cash FlowThe movement of money into and out of your accounts over time, showing whether more comes in than goes out.
- Budget SurplusThe leftover amount when your income for a period is larger than your total spending, freeing up money to save or invest.
- Savings RateThe share of your income you set aside rather than spend, usually shown as a percentage of your take-home pay.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Net IncomeWhat is left of your earnings after taxes and deductions, which is the money you actually have available to spend or save.
More in Budgeting & Cash Flow
Plain-English education — not personalized legal, tax, or investment advice.