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
- Emergency FundCash set aside for life's surprises, so a bad week doesn't turn into debt.
- Irregular ExpensesCosts that show up unpredictably or infrequently, such as car repairs or medical bills, which planning ahead can soften.
- Savings RateThe share of your income you set aside rather than spend, usually shown as a percentage of your take-home pay.
- Pay Yourself FirstThe habit of setting aside money for savings or investing as soon as you get paid, before spending on anything else.
- Annual ExpensesCosts that come due once a year, like insurance renewals or property taxes, that are easy to forget when budgeting monthly.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
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Plain-English education — not personalized legal, tax, or investment advice.