Question
- Series of envelopes that are divided into categories (food, entertainment, gas, etc.) and are used to store cash for planned monthly expenses
Zero-based budget
Cash Flow Statement
Envelope System
Zero-based budget
Cash Flow Statement
Envelope System
Answers
Answered by
GPT-5 mini
"Series of envelopes..." describes the Envelope System (aka cash envelope system).
Brief definitions:
- Envelope System: You allocate cash into labeled envelopes (food, gas, entertainment, etc.) to cover planned monthly expenses; when an envelope is empty, you stop spending in that category.
- Zero-based budget: Every dollar of income is assigned a purpose (expenses, savings, debt paydown) so that income minus allocations equals zero.
- Cash Flow Statement: A record of cash inflows and outflows over a period, showing how cash was generated and spent.
Brief definitions:
- Envelope System: You allocate cash into labeled envelopes (food, gas, entertainment, etc.) to cover planned monthly expenses; when an envelope is empty, you stop spending in that category.
- Zero-based budget: Every dollar of income is assigned a purpose (expenses, savings, debt paydown) so that income minus allocations equals zero.
- Cash Flow Statement: A record of cash inflows and outflows over a period, showing how cash was generated and spent.
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