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)
Personal budgeting is the process of creating a plan for how you will spend and save your money, tracking income and expenses to achieve financial goals, including real estate investments.
Personal Burn Rate refers to the rate at which an individual or household spends their cash reserves over a specific period, typically monthly. It's a critical metric for real estate investors to understand how long they can sustain themselves without active income.
The total amount of money an individual or household has left after all income and expenses are accounted for over a specific period, indicating financial health and capacity for savings or investment.
Personal finances refer to the management of an individual's or family's money, including income, expenses, savings, investments, and debt, to achieve financial stability and goals.
A Personal Financial Statement (PFS) is a document that summarizes an individual's financial position at a specific point in time, detailing assets, liabilities, and net worth. It is a critical tool for real estate investors seeking financing or evaluating their financial health.
A Personal Financial Stress Test is a systematic evaluation of an individual's or household's financial resilience against adverse economic scenarios, crucial for real estate investors to safeguard their portfolios.
A Property Operating Account is a dedicated bank account used exclusively for managing all income and expenses associated with an investment property. It ensures financial separation, simplifies record-keeping, and provides a clear overview of the property's financial performance.
Real estate investment budgeting is the process of creating a detailed financial plan to estimate all expected income and expenses associated with an investment property, guiding financial decisions and ensuring profitability.
A reserve account is a dedicated fund set aside by property owners or associations to cover future major repairs, replacements, and unexpected capital expenditures, ensuring the long-term stability of an investment property.
Retirement income refers to the money an individual receives to cover living expenses after they have stopped working full-time, ensuring financial security in their later years.
A deposit account held at a bank or financial institution that provides a secure place to store money while earning a small amount of interest, typically used for short-term savings goals or emergency funds.
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.
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