[English 101] BUDGET PLAN - Expressions for allocating income and expenses

Teaching Material

1. Her monthly income covers her basic expenses comfortably.
• income (noun) - Money received on a regular basis from work, investments, or other sources
• Use this when discussing the money you earn or receive. ‘Income’ often refers to salary, wages, or other revenue streams. It's key for budget planning because it’s the starting point to figure out how much you can spend or save each month.
• I just got my paycheck—my income this month seems higher than usual.
• earnings - ‘Earnings’ is typically used in a more formal or business context, often referring to profits or personal pay from work.
• revenue - Use ‘revenue’ when discussing the total income of a business or a government. Less common in personal budgeting.
2. Her salary increased after the annual performance review.
• salary (noun) - A fixed regular payment, typically paid monthly or biweekly by an employer
• Use ‘salary’ to discuss the standard pay you receive as an employee. It’s crucial in budgeting to know your stable inflow of money, so you can allocate it wisely.
• I need to set aside 20% of my salary for savings each month.
• wage - ‘Wage’ is used when payment is based on hours or days worked, common in part-time or manual jobs.
• pay - ‘Pay’ is an informal catch-all referring to money you get from your job. Good in casual conversation.
3. My monthly expenses include rent, groceries, and utilities.
• expenses (noun) - Money spent or costs incurred in the pursuit of goals or daily living
• Use ‘expenses’ when discussing what you spend your money on. Dividing them into categories like rent, bills, and leisure helps plan where and how to cut back if needed.
• I should track my expenses carefully to avoid going over budget.
• costs - ‘Costs’ is a more general term and can apply to anything that requires payment. Often used in both personal and business contexts.
4. Reducing overhead can free up funds for savings.
• overhead (noun) - Ongoing operating expenses, typically for businesses or households
• Use ‘overhead’ when referring to regular, consistent expenses like rent or utilities. In personal finance, it helps identify fixed costs you must account for in your budget.
• Our household overhead includes rent, electricity, and insurance.
5. We ended the quarter with a small surplus in our budget.
• surplus (noun) - An amount of something left over when requirements have been met; an excess of income or assets over expenditure
• Use ‘surplus’ to show you have more income than expenses. This term is helpful to highlight the availability of extra money for investing or saving after all bills are paid.
• If we spend less than planned, we’ll have a surplus we can invest.
• excess - Use ‘excess’ informally to indicate something remaining beyond a limit. Good in everyday speech, but less formal than ‘surplus.’
6. There's a budget deficit because our expenses exceed our income.
• deficit (noun) - The amount by which something, especially a sum of money, is too small
• Use ‘deficit’ when your spending is greater than your income. It can be a warning sign to tighten the budget or find ways to increase income.
• If we keep overspending, we’ll face a deficit by next month.
• shortfall - ‘Shortfall’ is a more casual way to indicate not having enough money to cover your outflows.
7. Maintaining a positive cash flow is crucial for a stable household budget.
• cash flow (noun phrase) - The total amount of money being transferred into and out of a business, project, or personal budget
• ‘Cash flow’ helps you track how money moves in and out. In personal finance, good cash flow means your monthly income covers expenses plus savings, preventing debt.
• We need to watch our cash flow this month to avoid unnecessary debt.
8. He pays a higher tax rate now that he's in a new income bracket.
• tax (noun) - A compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of goods and services
• Use ‘tax’ when talking about mandatory financial charges imposed by authorities. Essential in any budget to avoid surprises when the payment date arrives.
• Don’t forget we need to set aside some money to pay our taxes next month.
9. I pay interest on my student loan each month.
• interest (noun) - Money paid regularly at a particular rate for the use of borrowed money, or for delaying the repayment of a debt
• Use ‘interest’ to focus on the cost of borrowing or the benefit of saving. In budgeting, it highlights extra charges or earnings that affect your monthly or annual plans.
• Check the interest rate before you sign any loan agreement.
10. They decided to refinance their mortgage to lower monthly payments.
• mortgage (noun) - A legal agreement by which a bank lends money at interest in exchange for taking title of the borrower’s property
• Use ‘mortgage’ when referring to home loans. It’s often the largest expense in a household budget, so it’s essential to plan for it carefully and consistently.
• My mortgage payment takes a big chunk of my paycheck.
11. Our utilities bill went up due to increased water usage.
• utilities (noun (plural)) - Services provided to the public such as electricity, water, or gas
• Use ‘utilities’ to talk about basic services like electricity, gas, water, and sometimes internet. They’re usually fixed monthly costs, which you need to account for in any budget.
• Don’t forget to pay the utilities by the end of the week.
12. We spend about $300 on groceries each month.
• groceries (noun (plural)) - Items of food sold in a grocery store
• Use ‘groceries’ to discuss daily necessities like food and household products. Keep track of it as it’s a regular expense that can fluctuate based on habits and needs.
• Let’s budget more for groceries this month because we’re cooking at home more often.
13. Her rent is due on the first of every month.
• rent (noun) - A tenant's regular payment to a landlord for the use of property or land
• ‘Rent’ refers to the monthly fee if you do not own your home. It’s typically a fixed or major expense, so it’s one of the first costs to cover in any budget plan.
• I need to pay rent before I buy anything else this week.
14. They have both health and car insurance expenses every month.
• insurance (noun) - A practice or arrangement by which a company provides a guarantee of compensation for specified forms of loss, damage, illness, or death
• Use ‘insurance’ for protective services like health, auto, or home coverage. It’s an essential component of a budget to safeguard against unforeseen events and reduce financial risks.
• Our insurance premium will go up if we file another claim.
15. She keeps her savings in a high-yield bank account.
• savings (noun) - Money one has saved, especially through a bank or official scheme
• Use ‘savings’ when referring to the portion of income set aside for future use. Setting a fixed percentage for savings in your budget helps build financial security.
• I transfer 15% of my paycheck to my savings each month.
16. He diversified his investments to reduce risk.
• investments (noun (plural)) - Assets purchased with the hope they will generate income or appreciate in value over time
• Use ‘investments’ for discussing longer-term financial growth, like stocks or bonds. They come with risks, but can grow your funds beyond simple saving, important for extended planning.
• I’m thinking of putting some money into safe investments rather than just keeping it in a regular account.
17. They started saving early for a comfortable retirement.
• retirement (noun) - The period of one’s life after leaving the workforce
• Use ‘retirement’ when talking about the phase of life after regular employment. Budgeting for retirement ensures a stable income in later years, often through pensions or investments.
• I’m opening a retirement account to ensure I’m financially secure when I stop working.
18. I made a monthly budget to avoid overspending.
• budget (noun) - An estimate of income and expenditure for a set period of time
• ‘Budget’ is central to financial planning. It helps track where money goes, ensuring you meet both short- and long-term goals. Revisit it regularly to keep spending in check.
• Let’s create a budget before we plan our vacation.
19. We need a solid plan to manage our household finances effectively.
• plan (noun) - A detailed proposal for achieving or doing something
• Use ‘plan’ to describe a strategy or outline for achieving financial goals. Combining a budget with a broader plan provides clarity on steps to take, deadlines, and priorities.
• Let’s make a plan before we start investing in anything new.
20. Check the spread between the buying and selling price before you invest.
• spread (noun) - The difference between two prices, rates, or amounts
• Use ‘spread’ when comparing two financial figures, such as interest rates or stock prices. Understanding the spread helps you spot hidden costs or potential gains.
• The spread on this investment is too large; let’s look for a better deal.
21. We reduced our expenditure on entertainment this month.
• expenditure (noun) - The action of spending funds; an amount of money spent
• Use ‘expenditure’ in a slightly more formal or technical setting to refer to the total amount spent. It’s helpful for broader budgeting discussions, especially comparing categories.
• We have to limit our expenditure if we want to save more.
• spending - ‘Spending’ is more casual and frequently used in everyday talk about money going out.
22. The cost of living in this city is significantly higher than in rural areas.
• cost of living (noun phrase) - The amount of money needed to sustain a certain level of living, including basic expenses such as housing and food
• Use ‘cost of living’ when comparing expenses across different locations or times. It helps plan or negotiate salaries, especially when relocating or changing lifestyles.
• We need to adjust our budget because the cost of living here is rising.
23. He has a lot of credit card debt to pay off.
• debt (noun) - Money that is owed or due
• Use ‘debt’ when talking about money borrowed and yet to be paid back. Understanding and managing debt is crucial in a budget plan to avoid high interest and financial pressure.
• I want to eliminate my debt before I start any major investments.
24. A good credit score makes it easier to get loans with lower interest rates.
• credit (noun) - The ability of a customer to obtain goods or services before payment, based on trust that payment will be made in the future
• Use ‘credit’ to refer to borrowing capacity or a line of trust with lenders. It’s a key part of financial planning since higher credit can mean better loan terms.
• Should we buy that on credit or pay in cash?
25. They took out a loan to cover renovation costs.
• loan (noun) - A thing that is borrowed, especially a sum of money that is expected to be paid back with interest
• Use ‘loan’ when referring to money borrowed from a bank, financial institution, or person. Knowing the terms (interest rate, payback period) helps manage it within your budget.
• Can you help me decide whether to apply for a small personal loan or use my credit card?
26. Her emergency fund helped cover car repairs unexpectedly.
• emergency fund (noun phrase) - A stash of money set aside to cover financial surprises
• Use ‘emergency fund’ to emphasize savings for unforeseen expenses, like medical bills or car repairs. It helps avoid relying on high-interest debt when unexpected costs arise.
• Before I invest further, I need to build up my emergency fund first.
27. He took on overtime to earn more money for his vacation fund.
• overtime (noun) - Time worked beyond one’s scheduled work hours, often paid at a higher rate
• Use ‘overtime’ when talking about extra work hours for extra pay. It’s a strategy for increasing income if feasible, helping you meet budget shortfalls or savings targets faster.
• I'm planning to do overtime this weekend to boost my paycheck.
28. She receives a commission on every house she sells.
• commission (noun) - A sum, typically a set percentage of the value involved, paid to an agent in a commercial transaction
• Use ‘commission’ when talking about earnings tied to sales or completed deals. This form of variable income is crucial to plan around because it can fluctuate monthly.
• My commission check was good this month, so I can pay off more debt.
29. Rent from her extra room generates a small passive income.
• passive income (noun phrase) - Earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved
• Use ‘passive income’ to describe earnings that require minimal ongoing labor. This concept is critical for financial independence and can be factored into a budget as an additional source.
• I’m exploring ways to earn passive income so I’m not just relying on my salary.
30. He reviews his bank statement every month to track his spending.
• bank statement (noun phrase) - A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it
• Use ‘bank statement’ to monitor deposits, withdrawals, and account balances. Reviewing statements regularly helps you spot errors or unusual transactions, essential for accurate budgeting.
• I noticed a strange charge on my bank statement—let me call the bank about it.
31. She checked her balance before making an online purchase.
• balance (noun) - The amount of money held in an account
• Use ‘balance’ to talk about how much money remains in your account or how much you still owe on a bill. Keeping track of it helps prevent overdrafts or missed payments.
• My bank balance is low, so I should skip dining out this weekend.
32. Her monthly payment is automatically deducted from her account.
• payment (noun) - The action or process of paying someone or something, or of being paid
• Use ‘payment’ to refer to transferring money for a product, service, or loan. It’s critical in budgeting to note due dates and amounts so you never miss an obligation.
• I made the final payment on my car loan!
33. The bill’s due date is the 15th of every month.
• due date (noun phrase) - The day or time by which something must be done, paid, or returned
• Use ‘due date’ to specify the deadline for payments or submissions. Staying aware of due dates prevents penalties or disruptions and keeps budgeting on track.
• Keep track of each due date in our calendar to avoid late fees.
34. I plan to invest a small percentage of my salary in a retirement fund.
• percentage (noun) - A rate, number, or amount in each hundred
• Use ‘percentage’ to describe parts of your income or costs in fractional terms. It’s helpful for setting saving goals or analyzing which expenses take up the biggest share.
• What percentage of our income do we want to save each month?
35. He received a reimbursement for his travel costs from the office.
• reimbursement (noun) - Repayment of money you’ve already spent
• Use ‘reimbursement’ when you’re expecting money back for expenses you covered. It’s an important concept if you handle upfront costs that your company or partner later repays.
• Don’t forget to submit your receipts to get a reimbursement.
36. They offered a discount for early payment.
• discount (noun) - A reduction in the usual cost of something
• Use ‘discount’ when you pay less than the normal price. Being mindful of available discounts can significantly reduce expenses and help stretch your budget further.
• I got a 10% discount by paying my bill ahead of time.
37. His parents give him a weekly allowance to teach basic budgeting.
• allowance (noun) - A sum of money paid regularly to a person, typically to meet specified needs or for discretionary spending
• Use ‘allowance’ to refer to a set amount allocated for a specific purpose (kids’ spending or personal discretionary funds). It helps control or track spending more precisely.
• I’m setting a small allowance for fun activities so I don’t overspend.
38. They switched to the envelope system to better control their day-to-day expenses.
• envelope system (noun phrase) - A method of budgeting where cash is placed in envelopes for different spending categories
• Use ‘envelope system’ to describe a traditional method of dividing cash into labeled envelopes. It’s a tangible and straightforward way to limit overspending in each category.
• Let’s try the envelope system to keep track of our grocery and entertainment budgets.
39. It’s essential to prioritize basic necessities when on a tight budget.
• prioritize (verb) - Designate or treat something as more important than other things
• Use ‘prioritize’ when deciding the order of importance for expenses or goals. It helps ensure that vital payments or savings happen first, guiding more responsible financial decisions.
• Let’s prioritize paying off credit card debt before buying new gadgets.
40. He decided to allocate a higher percentage of his income to savings.
• allocate (verb) - Distribute resources or duties for a particular purpose
• Use ‘allocate’ to describe setting aside a specific portion of your resources to different categories. It ensures each goal or expense is funded as intended in your budget.
• We need to allocate enough money this month for home repairs.
• assign - ‘Assign’ can replace ‘allocate’ in everyday conversation but is slightly broader and less formal in financial contexts.
41. She allowed herself to splurge on a spa day after meeting her savings goals.
• splurge (verb) - Spend money freely or extravagantly
• Use ‘splurge’ when you decide to spend more than usual on something non-essential. If it’s planned within your budget, an occasional splurge can be enjoyable without causing guilt.
• I might splurge on a nice dinner, but only if I have enough left in my entertainment budget.
42. They cut back on luxuries to focus on necessities when money was tight.
• necessities (noun (plural)) - Things that you must have and cannot manage without
• Use ‘necessities’ to refer to fundamental needs like food, shelter, and utilities. Prioritizing these ensures that essential living costs are always covered in your budget.
• Let’s buy the necessities first and see if there’s money left over.
43. Discretionary expenses like entertainment can be trimmed to meet savings goals.
• discretionary (adjective) - Based on individual choice or judgment; typically referring to optional spending
• Use ‘discretionary’ for non-essential expenses. Identifying discretionary items helps you see where you can cut back if you need extra money for crucial financial priorities.
• We should reduce our discretionary spending next month to boost savings.
44. He keeps a household ledger to track every transaction.
• ledger (noun) - A book or other collection of financial accounts
• Use ‘ledger’ for a record of financial transactions. In personal budgeting, a simple ledger can track all incomings and outgoings, ensuring no hidden or forgotten expenses.
• I’ll update our ledger tonight so we know exactly where our money went.
45. They paid for the sofa in monthly installments.
• installment (noun) - A sum of money due as one of several equal payments for something, spread over an agreed period of time
• Use ‘installment’ when describing partial payments scheduled over time. This method can ease immediate financial strain but be aware of potential interest fees.
• I prefer paying in installments rather than one large lump sum.
46. Their financial forecast suggests an increase in income next quarter.
• forecast (noun/verb) - A prediction or estimate of future events, especially regarding weather or financial trends
• Use ‘forecast’ when predicting future inflows or outflows of money. It’s useful for planning big decisions like home purchases, major investments, or changes in employment.
• Let’s forecast our expenses for the year to see how much we can save.
47. Adopting minimalism helped her save significantly on unnecessary purchases.
• minimalism (noun) - A style or technique characterized by extreme spareness and simplicity, used here in reference to reduced spending and simpler lifestyle
• Use ‘minimalism’ to describe a lifestyle approach focused on reducing clutter and expenses. It’s helpful for anyone looking to simplify life and direct money toward important goals.
• I’ve started practicing minimalism—buying only what I truly need.
48. Their financial goal is to buy a house within five years.
• goal (noun) - The object of a person's ambition or effort; an aim or desired result
• Use ‘goal’ to define a specific financial target (like saving a certain amount or paying off debt). Having clear goals in your budget helps measure progress and stay motivated.
• My next goal is to save enough for a down payment.
49. The upfront cost of buying new appliances can be high.
• upfront cost (noun phrase) - The initial amount of money required before or at the start of a purchase, plan, or agreement
• Use ‘upfront cost’ when talking about an immediate payment or down payment required at the beginning of a purchase or project. It’s vital to plan for these in your budget.
• We should consider the upfront cost before deciding on a new car.
50. He checked how much money was still owing on his credit card.
• owing (adjective) - Yet to be paid, or owed as a debt
• Use ‘owing’ to highlight debts or pending payments. It indicates that there’s a responsibility to pay. Being aware of what is owing ensures you can manage deadlines properly.
• I’m still owing some amount on my student loan, but I’m making progress.
51. She reconciles her budget with her bank statement every month.
• reconcile (verb) - To make one account consistent with another, often by allowing for transactions begun but not yet completed
• Use ‘reconcile’ in the context of matching your financial records to ensure they agree with real transaction data. It helps spot mistakes and maintain accurate budgets.
• I need to reconcile our grocery receipts with the statement to ensure no errors.
52. She awaits her biweekly paycheck to cover this month’s bills.
• paycheck (noun) - A check for salary or wages made out to an employee
• Use ‘paycheck’ when referring to the money you receive from your employer regularly. It’s central in budgeting discussions, as it’s often the main source of personal income.
• My paycheck just came in, so I can pay the rent tomorrow.
53. They’ve set up recurring payments for their subscriptions.
• recurring (adjective) - Occurring at regular intervals
• Use ‘recurring’ to describe expenses or income that repeat regularly. Identifying recurring bills helps plan consistent outflows and ensures they’re covered automatically or on time.
• Make sure you have enough in your account for recurring bills like phone and electricity.
54. She checked her salary slip to confirm her net pay.
• salary slip (noun phrase) - A note given to an employee when they have been paid, detailing the amount of pay given and the tax and insurance deducted
• Use ‘salary slip’ (or ‘pay stub’) to verify the components of your earnings, deductions, and net pay. Reviewing it ensures you understand all withholdings for your budget.
• According to my salary slip, I earn a bit less this month due to fewer workdays.
55. They are considering financing options to renovate their home.
• financing (noun/verb) - The act of providing money for a project, typically in the form of a loan or investment
• Use ‘financing’ when discussing how to fund large purchases or projects, often involving loans or credit. It’s integral to compare interest rates and repayment terms before committing.
• What’s the best financing plan to buy a new car without draining our savings?
56. They decided to refinance their mortgage to reduce monthly payments.
• refinance (verb) - Obtain a new loan at a lower interest rate to pay off an existing loan
• Use ‘refinance’ when looking to restructure or replace an existing loan with a new one, usually to get better terms. It can help free up extra cash in your budget.
• Should we refinance our student loans to get a better rate?
57. They had to draw on their emergency fund due to unforeseen medical bills.
• unforeseen (adjective) - Not anticipated or predicted; unexpected
• Use ‘unforeseen’ for unexpected expenses that can shake up your budget. Having an emergency fund or plan mitigates the impact of such surprises.
• Set some money aside for unforeseen events like car breakdowns or hospital visits.
58. She arranged a payment plan to manage her hospital bills.
• payment plan (noun phrase) - An agreement to pay an amount of money over an extended period, usually in installments
• Use ‘payment plan’ to describe structured terms for repaying a debt or expense. It can help spread out major costs so they’re more manageable within your monthly budget.
• We should ask the credit card company if they offer a payment plan with lower interest.
59. He received a lump sum when he retired, which he invested immediately.
• lump sum (noun phrase) - A single payment of money, as opposed to a series of smaller payments
• Use ‘lump sum’ for one-time, large payments. Deciding between lump sum and installments depends on available cash, interest rates, and overall budget impact.
• We can either pay the full lump sum now or break it into monthly installments.
60. They set up a clear payment schedule for their new loan.
• payment schedule (noun phrase) - A detailed plan listing when payments are due
• Use ‘payment schedule’ to organize and track due dates and amounts for ongoing debts or bills. It keeps your finances orderly and helps avoid late charges.
• Let’s review the payment schedule to ensure we’re never late.
61. Her account became overdrawn after unexpected charges.
• overdrawn (adjective) - Having a negative balance in a bank account by spending more money than is in it
• Use ‘overdrawn’ to warn about a shortfall in your account. Staying on top of your balance is vital to prevent overdraft fees and disruption in payments.
• If your bank account is overdrawn, you’ll be charged extra fees.
62. She requested a higher credit limit after her income increased.
• credit limit (noun phrase) - The maximum amount of credit a financial institution extends to a client
• Use ‘credit limit’ to discuss the maximum borrowing capacity on a credit card. Staying aware of your credit limit helps avoid fees and protect your credit score.
• I need to keep my balance below 30% of my credit limit to maintain a good score.
63. They built a small financial cushion to handle emergencies like car repairs.
• financial cushion (noun phrase) - A reserve of money that helps absorb unexpected costs or losses
• Use ‘financial cushion’ to express having some money set aside beyond basic savings. It’s helpful for extra security and reduces stress about unplanned expenses.
• I feel safer with a financial cushion in case anything goes wrong.
64. The interest rate on her savings account is quite competitive.
• interest rate (noun phrase) - The proportion of a loan charged as interest to the borrower
• Use ‘interest rate’ to determine borrowing costs or earning potential on savings. Lower interest rates are preferable for loans, while higher rates are better for savings.
• Before signing for the loan, let’s compare interest rates from different banks.
65. Her credit card has a 25-day grace period before interest applies.
• grace period (noun phrase) - Extra time allowed to pay a debt without penalty
• Use ‘grace period’ to describe a short timeframe where no penalties or interest are charged if a payment is late. It provides flexibility but shouldn’t be abused repeatedly.
• Make sure you pay the bill within the grace period to avoid extra fees.
66. They faced a penalty fee for late rent.
• penalty (noun) - A punishment or disadvantage imposed for breaking a rule or contract
• Use ‘penalty’ for additional charges or fines when you breach financial terms, such as late payments. Understanding penalties helps you avoid unnecessary costs in your budget.
• You might get a penalty if you don’t pay your bill on time.
67. He requested a payment extension to handle an unexpected job loss.
• payment extension (noun phrase) - An agreement to push the payment due date to a later time
• Use ‘payment extension’ to describe arrangements made with lenders to postpone a due date. It’s a temporary solution that can prevent default but often comes with conditions or fees.
• We might ask for a payment extension to ease our cash flow issue this month.
68. They enacted a budget cut on their dining out expenses.
• budget cut (noun phrase) - A reduction in spending
• Use ‘budget cut’ when you’re lowering spending in certain areas. It helps free up money for more urgent or important financial goals, but be mindful of what is essential.
• We need a budget cut if we want to fund our vacation next summer.
69. Set aside money for contingency planning in case of job loss.
• contingency (noun) - A future event or circumstance which is possible but cannot be predicted with certainty
• Use ‘contingency’ to talk about unforeseen future events. Planning a contingency amount in your budget can help mitigate risks and financial stress.
• We saved an extra $500 as a contingency for emergencies.
70. She receives a phone bill every month.
• bill (noun) - A statement of money owed for goods or services supplied
• Use ‘bill’ for any statement demanding payment, such as utilities, phone, or credit card charges. Tracking all bills ensures you don’t fall behind on important obligations.
• I forgot to pay the electricity bill last week.
71. She successfully handled her salary negotiation to receive a 10% raise.
• salary negotiation (noun phrase) - Discussion aimed at reaching an agreement on salary and benefits between an employee and employer
• Use ‘salary negotiation’ to reference the process of agreeing on compensation. Knowing your financial requirements and researching industry standards can help you negotiate effectively.
• I have a salary negotiation coming up—I need to know my budget needs to aim for a fair figure.
72. She had to borrow some money to cover an unexpected bill.
• borrow (verb) - To take and use money from someone with the intention of returning it
• Use ‘borrow’ when you temporarily need money or items from others. Always consider whether you can repay within your budget to maintain good relationships and credit.
• Can I borrow $50 until I get paid next week?
73. Being frugal allowed him to save enough for a down payment on a house.
• frugal (adjective) - Sparing or economical with regard to money or food
• Use ‘frugal’ when highlighting careful, resourceful spending. It doesn’t mean never spending but being mindful of value, seeking deals, and avoiding wasteful purchases.
• I’m trying to be more frugal by cooking at home and canceling unused subscriptions.
74. They decided on splitting costs for the road trip, including gas and accommodations.
• splitting costs (noun phrase) - Dividing expenses among multiple parties
• Use ‘splitting costs’ when you and others share expenses. It ensures fairness and can help all parties stay within their personal budget limits.
• If we’re splitting costs, I’ll pay for dinner, and you cover the movie tickets.
75. Their mortgage repayment is due on the 2nd of each month.
• repayment (noun) - The action of paying back a loan
• Use ‘repayment’ for returning borrowed money or fulfilling installment obligations. Effective repayment strategies can save on interest and improve your credit over time.
• I want to accelerate my repayment schedule to clear this debt sooner.
76. She incurred a late fee on her credit card for missing the payment deadline.
• late fee (noun phrase) - A charge levied against a client for not paying a bill or returning an item by its due date
• Use ‘late fee’ to warn about extra charges when payments aren’t made by the due date. Budgeting for bills on time avoids these unnecessary costs and protects your credit.
• Remember to pay your loan on time, or you’ll get a late fee.
77. Their online store uses a secure payment gateway for transactions.
• payment gateway (noun phrase) - An e-commerce application service provider that authorizes credit card or direct payments
• Use ‘payment gateway’ when discussing online payment solutions like PayPal or Stripe. It’s crucial to ensure safe and seamless transactions, especially when budgeting via e-commerce.
• I prefer using a payment gateway with strong encryption to protect my card details.
78. Their home is their biggest asset.
• asset (noun) - A useful or valuable thing, person, or quality, especially in financial terms, property owned by a person or company
• Use ‘asset’ to talk about properties or investments you own that could generate future benefits or cash flow. Knowing your assets is key in evaluating your net worth.
• I’m looking to turn my extra space into a rental asset.
79. Their car loan is their only significant liability.
• liability (noun) - A thing for which someone is responsible, especially a debt or financial obligation
• Use ‘liability’ when referring to your financial obligations, like debts. Subtracting liabilities from assets gives a clearer picture of net worth and overall financial health.
• We should list out all our liabilities before planning our budget.
80. He calculated his net worth after paying off major debts.
• net worth (noun phrase) - The total wealth of an individual, company, or household, calculated by subtracting liabilities from assets
• Use ‘net worth’ to measure overall financial status. It’s helpful for long-term planning and indicates how effectively you’re building wealth over time.
• Let’s find our net worth to see if we’re ready to invest more aggressively.
81. Using a zero-based budget, they assign each dollar to a specific category each month.
• zero-based budget (noun phrase) - A method where every dollar is allocated to an expense or savings category until you reach zero
• Use ‘zero-based budget’ if you want to meticulously track every part of your income. This method ensures accountability, helping you see where money is spent or saved.
• With a zero-based budget, I know exactly where every cent of my paycheck goes.
82. She’s balancing her checkbook to ensure no discrepancies.
• balancing (verb/noun) - Keeping a budget or account in equilibrium by matching credits and debits
• Use ‘balancing’ to refer to ensuring your accounts or finances match up with actual transactions. Regular balancing helps avoid mistakes or accidental overspending.
• I spent the morning balancing my expenses with my bank records.
83. He set up auto-debit for his utility payments to never miss a due date.
• auto-debit (noun) - An arrangement to have funds automatically withdrawn from your account to pay a recurring bill
• Use ‘auto-debit’ to talk about scheduled, automatic payments from your bank account. It reduces the chance of late fees but requires ensuring enough funds are always available.
• I like using auto-debit, so I don’t forget to pay my bills on time.
84. Her coffee shop habit is an optional expense she might cut to save more.
• optional expense (noun phrase) - A cost that is not strictly necessary and can be reduced or removed from a budget
• Use ‘optional expense’ to denote non-essential spending, like entertainment or luxury items. Identifying these helps adjust your budget if income drops or you have bigger savings goals.
• Streaming services are an optional expense; we can cancel some to lower our bills.
85. Her gross income looks higher than her take-home pay because of taxes.
• gross income (noun phrase) - An individual's total personal income before taking taxes or deductions into account
• Use ‘gross income’ to figure out the total earnings before deductions. It’s useful for big-picture planning, like understanding which tax bracket you’re in or applying for loans.
• My gross income is $50,000 a year, but I need to subtract taxes to find my net income.
86. Her net income is the figure she actually brings home each month.
• net income (noun phrase) - An individual’s income after taxes and deductions have been removed
• Use ‘net income’ to calculate your real spending or saving potential. This is the most useful figure for day-to-day budgeting because it reflects what you truly have available.
• Let’s plan our budget based on net income to see how much we actually have.
87. Moving to a higher tax bracket means paying a higher percentage of income as tax.
• tax bracket (noun phrase) - A range of incomes taxed at a specific rate
• Use ‘tax bracket’ to understand at which marginal rate your income is taxed. It informs how much of your pay goes to taxes and can guide strategies to reduce taxable income.
• Check your tax bracket to see if it’s worth contributing more to a retirement account.
88. They claimed a tax exemption for having multiple dependents.
• exemption (noun) - A deduction allowed by law to reduce taxable income
• Use ‘exemption’ to talk about reducing taxable income through legal allowances, like dependents. It’s part of maximizing take-home pay and essential in annual budget planning.
• Look for every exemption you can use to lower your tax bill.
89. He listed his children as dependents on his tax return.
• dependent (noun) - A person who relies on someone else for financial support
• Use ‘dependent’ when referring to someone who relies on your financial support, such as a child or elderly relative. It affects your expenses and can alter your tax status.
• We have two dependents, so our tax situation is a bit complex.
90. Using the standard deduction simplified their tax return.
• standard deduction (noun phrase) - A set reduction in income that the IRS allows for tax-filing purposes
• Use ‘standard deduction’ for a fixed amount subtracted from taxable income if you choose not to itemize. It’s simpler and beneficial if you have few itemized expenses.
• Should we itemize or just use the standard deduction to save time?
91. Good financial planning allowed them to retire early.
• financial planning (noun phrase) - The task of determining how a business or individual will afford to achieve its strategic goals and objectives
• Use ‘financial planning’ to describe the broad process of mapping out how to manage income, expenses, investments, and savings. It’s essential for long-term security and goal achievement.
• We should start financial planning for our kids’ education as soon as possible.
92. She uses a budget tracker app to log every purchase in real time.
• budget tracker (noun phrase) - A tool or app used to monitor and categorize income and expenditures
• Use ‘budget tracker’ for any digital or paper-based method to record expenses systematically. It provides immediate insights into spending patterns and helps control impulse buys.
• Have you downloaded a budget tracker to see where your money goes?
93. They use a spreadsheet to keep track of monthly bills and income.
• spreadsheet (noun) - A computer application for organization, analysis, and storage of data in tabular form
• Use ‘spreadsheet’ if you prefer customizing your budgeting with flexible formulas and layout. It’s a practical tool for detailed data input and calculation of various financial metrics.
• I’ll create a spreadsheet to break down our expenses into categories.
94. Streaming subscriptions can add up, so they included them in their budget.
• subscription (noun) - An arrangement to receive something, typically a service or publication, regularly by paying in advance
• Use ‘subscription’ to address recurring fees for online services, magazines, or memberships. Evaluating which ones you truly need helps reduce unnecessary monthly costs.
• Let’s cancel the gym subscription if we’re not using it much; it’ll save us $30 a month.
95. The app sends a payment reminder a few days before the bill is due.
• payment reminder (noun phrase) - A notice, often automated, that a payment is due
• Use ‘payment reminder’ to help avoid missed due dates and late fees. Leveraging reminders keeps your budget on track and ensures timely bill settlement.
• I got a payment reminder for my car insurance—let’s pay it today.
96. He’s a diligent saver, putting aside a portion of every paycheck.
• saver (noun) - A person who saves money regularly
• Use ‘saver’ to describe someone who regularly puts money away. Encourage consistent saving habits as part of your budget for achieving financial goals with less stress.
• I’m not the best saver—I often end up spending on small luxuries.
97. They overestimated their monthly grocery budget and ended up with surplus food.
• overestimate (verb) - Estimate (something) to be better, larger, or more important than it really is
• Use ‘overestimate’ to warn about allocating more resources than needed. It can lead to unused funds but might also cause missed opportunities if you’re too conservative in other areas.
• We might overestimate how much we need, so let’s be more precise next time.
98. They underestimated their electricity bill, causing a shortfall in their budget.
• underestimate (verb) - Estimate (something) to be less or lower than it really is
• Use ‘underestimate’ to caution against budgeting too little for certain expenses. It can lead to deficits or borrowing to cover shortfalls, disrupting your overall plan.
• Don’t underestimate our travel costs; plane tickets have gone up this year.
99. Maintaining financial wellness means saving enough and managing debt responsibly.
• financial wellness (noun phrase) - A state of well-being in which a person can fully meet current and ongoing financial obligations and feel secure in their financial future
• Use ‘financial wellness’ to highlight overall stability and peace of mind around money matters. Achieving it typically involves budgeting, saving, investing, and debt management.
• I’m working on my financial wellness by paying down credit cards and building a savings buffer.