Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
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Foundation terms you need to know first (37 terms)
A tax refund is a reimbursement to taxpayers of excess tax paid to the government. For real estate investors, it represents a potential source of capital for new investments or property improvements.
Business finances involve the management of all money-related activities within a company, including income, expenses, profit, and cash flow, crucial for understanding investment performance.
Liabilities are financial obligations or debts that an individual or business owes to others, representing money that must be paid back in the future.
Consumer debt is money owed by individuals for personal goods and services, such as credit card balances, auto loans, and student loans, which directly impacts an investor's financial health and borrowing capacity for real estate.
The percentage of your disposable income that you save rather than spend, a key metric for personal finance and crucial for building capital for real estate investments.
Complex strategies and professional concepts (1 terms)
Adjusted Gross Income (AGI) is an individual's gross income minus specific deductions, often referred to as "above-the-line" deductions. It serves as a foundational figure for calculating tax liability and determining eligibility for various tax credits and deductions.
Automated savings is a financial strategy that involves regularly transferring a set amount of money from one account to another without manual intervention, helping investors consistently build capital for real estate goals.
Bookkeeping is the systematic recording of all financial transactions related to your real estate investments, including income, expenses, assets, and liabilities, to maintain a clear financial record.
Budget variance is the quantitative difference between a budgeted financial amount and the actual amount incurred or received. It's a key metric for real estate investors to evaluate performance against financial plans and identify areas for improvement.
A dedicated financial account used exclusively for business-related transactions, separate from personal finances, crucial for legal compliance and clear financial tracking in real estate investing.
A financial tool for businesses to manage expenses, separate personal and business finances, and build business credit history.
Business finances involve the management of all money-related activities within a company, including income, expenses, profit, and cash flow, crucial for understanding investment performance.
Cash flow management in real estate investing is the strategic process of monitoring, analyzing, and optimizing the movement of money into and out of an investment property or portfolio to ensure financial stability and profitability.
The Cash Ratio is a stringent liquidity metric that measures a company's ability to cover its current liabilities using only its most liquid assets: cash and cash equivalents. It's a critical indicator of immediate financial solvency for real estate businesses and investors.
A cash reserve is a dedicated fund for real estate investors to cover unexpected property expenses, vacancies, and major repairs, ensuring financial stability and protecting investment cash flow.
Cash reserves are readily available funds held by a real estate investor to cover unexpected property expenses, operational shortfalls, or periods of vacancy, ensuring financial stability and risk mitigation.
Consumer debt is money owed by individuals for personal goods and services, such as credit card balances, auto loans, and student loans, which directly impacts an investor's financial health and borrowing capacity for real estate.
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