Budgeting Terms Explained: Zero-Based, Sinking Fund, Net Worth

The terms your money runs on, defined in one calm paragraph each.

🥧 The 50/30/20 Rule Explained: Definition and Example | Cash Book The 50/30/20 rule splits after-tax income into 50% needs, 30% wants and 20% savings. What counts as each, a worked example on $4,000, and how to track it. 🌊 What Is Cash Flow? Definition and Example | Cash Book Personal cash flow is money in minus money out over a period. How to calculate it, a worked example with $3,600 in and $3,350 out, and why timing matters. 🍿 What Is Discretionary Spending? Definition, Example | Cash Book Discretionary spending is the money you choose to spend after essentials: dining out, hobbies, travel. What counts, a worked example on $3,800, and 5 ways it hides. ✉️ What Is Envelope Budgeting? Definition and Example | Cash Book Envelope budgeting puts a fixed amount into a named envelope per category and stops spending when it is empty. How it works with 6 envelopes, digital or cash. ⚖️ What Is Net Worth? Definition and Example | Cash Book Net worth is what you own minus what you owe, at one moment. How to calculate it in 3 steps, a worked example, and why the trend matters more than the number. 🎯 What Is Zero-Based Budgeting? Definition and Example | Cash Book Zero-based budgeting gives every dollar of income a job until income minus planned spending equals 0. How it works, a worked example on $3,200, and how to log it.

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