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
- Deficit SpendingSpending more than you earn over a period, which means the gap has to be covered by savings or borrowing.
- Positive Cash FlowWhen the money coming in during a period is greater than the money going out, leaving you with a surplus.
- 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.
- Spending PlanA forward-looking plan for where each dollar of income will go before you spend it, covering bills, saving, and everyday costs.
- Cash FlowThe movement of money into and out of your accounts over time, showing whether more comes in than goes out.
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Plain-English education — not personalized legal, tax, or investment advice.