Glossary
Budgeting Glossary
Every term you will encounter in budgeting apps, plain-English definitions, and which apps each term is relevant to.
Budgeting Methods
Envelope Budgeting
Envelope budgeting is a cash-based method where you divide your monthly income into physical (or digital) envelopes for each spending category. When an envelope is empty, spending in that category stops.
Sinking Funds
A sinking fund is a savings category for a known future expense — you set aside a small amount each month so the expense does not feel like a surprise when it arrives.
Zero-Based Budgeting (ZBB)
Zero-based budgeting is a method where you assign every dollar of income to a specific category before the month starts, so your income minus your allocations equals zero.