Glossary
Budget
A budget is a plan for how you'll allocate your income across spending categories, savings, and debt payments over a set period — usually monthly.
Why it matters
Budgeting is less about restriction and more about awareness. Most people underestimate their spending by 20-40% in categories like dining and subscriptions. A budget closes the gap between what you think you spend and what you actually spend, letting you redirect money toward what matters most.
Example
On a $5,000/month take-home income, you might allocate $1,500 to housing, $600 to food, $400 to transportation, $500 to savings, and distribute the rest across other categories.
How Ray helps
Ray categorizes every transaction from your connected accounts and compares actual spending against your goals. Ask to instantly spot trends without manual spreadsheet work.
$ ray "how much did I spend on food this month vs last month?"Related terms
Zero-Based Budget
A zero-based budget assigns every dollar of income a specific job — spending, saving, or debt payment — until your income minus your allocated amounts equals exactly zero.
Cash Flow
Cash flow is the net amount of money moving in and out of your accounts over a period.
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.
Net Income
Net income is your take-home pay after all deductions — federal and state taxes, Social Security, Medicare, health insurance premiums, and retirement contributions.
Sinking Fund
A sinking fund is money you save incrementally for a planned future expense — like a vacation, insurance premium, or holiday gifts — so the cost doesn't hit all at once..