Budgeting & Personal Finance Terms
Financial terms related to budgeting, cash flow, and personal financial planning.
Budget
A financial plan that estimates income and expenses over a period of time.
Cash Flow
The net amount of cash moving in and out of a household or business over a period.
Emergency Fund
Savings set aside for unexpected expenses; typically 3–6 months of living costs.
Net Worth
Total assets minus total liabilities; the clearest snapshot of financial health.
Opportunity Cost
The value of the next best alternative foregone when making a financial decision.
Zero-Based Budgeting
A budgeting method where every dollar of income is assigned a purpose.