Money Buckets &
Cash Flow
Cash Flow
This term describes what you give up when you choose one option over another.
What is Opportunity Cost?
This type of savings account offers a higher interest rate, helping your money grow faster while remaining liquid.
What is a High-Yield Savings Account (HYSA)?
This term describes the rise in prices over time, reducing purchasing power.
What is inflation?
This term refers to spreading your investments across different asset types to reduce risk.
What is diversification?
This type of account is used to buy and sell investments like stocks and bonds.
What is a Brokerage Account?
These are the four main buckets for your paycheck
What are Save/Invest, Tax, Give, Live?
This type of savings account locks your money for a set term in exchange for a guaranteed interest rate, often higher than a regular savings account.
What is a Certificate of Deposit (CD)?
This rule helps you estimate how many years it will take for your money to double at a given interest rate.
What is the Rule of 72?
This principle suggests that higher potential returns come with higher levels of this.
What is risk?
This type of retirement account offers tax advantages and is commonly opened alongside a brokerage account.
What is an IRA (Individual Retirement Account)?
This phrase describes the total amount you spend each month on living expenses.
What is Burn Rate
The first steps in creating this type of account are identifying the institution, account type, minimum balance, fees, and interest rate.
What is a Cusion Account?
When prices rise faster than your income, this term describes the risk that your money will buy less in the future.
What is inflation risk?
This fund is often recommended for passive investors who want exposure to the entire market.
What is an Index Fund?
This phrase describes a system where investments generate income to cover your monthly burn rate.
What is a Portfolio Paycheck?
By focusing on this instead of your earnings, you can stay aligned with your financial goals.
What is living on your lifestyle?
In goal setting, what do the letters in the acronym R.I.C.H stand for?
What is Reachable, Individual, Controllable, & Happy?
This term describes how inflation erodes the real value of your savings over time.
What is purchasing power?
This metric measures the degree to which an investment’s price fluctuates over time.
What is volatility?
This type of account lets you borrow money up to a limit, but if you don’t pay it back on time, you’ll owe more due to interest.
What is a credit card account?
This concept encourages you to take control of your cash flow by allocating income into specific buckets for saving, spending, and giving.
What is Employ your Paycheck?
This phrase means having enough resources to live life on your terms without financial stress.
What is Financial Freedom?
This concept means money today is worth more than the same amount in the future.
What is the Time Value of Money?
This type of advisor is legally obligated to act in your best financial interest.
What is a Fiduciary?
This number, usually between 300 and 850, tells lenders how trustworthy you are with borrowed money.