Saving · Module 3 of 9
So it doesn't depend on a good month
Keep saving even when your income goes up and down, with an honest average and a plan that runs on its own.
Key terms in So it doesn't depend on a good month
- Income
Income is money earned or received, including wages or salaries, tips, commissions, contracted pay, government transfer payments, investment dividends, tax refunds, gifts and inheritances. Income can arrive on a fixed schedule or irregularly. The same amount may be described as gross income before deductions or net income after them, depending on the context.
Source: Consumer Financial Protection Bureau, Financial terms glossary
- Automatic savings
Automatic savings is a setup in which money moves from a checking account to a savings account on a chosen schedule without a manual transfer each time. The saver picks the amount and the date, often weekly or monthly. Some employers also let workers divide a paycheck between accounts through direct deposit, which achieves the same effect.
Source: Consumer Financial Protection Bureau, Looking for an easy way to save money? Make it automatic
- Variable expenses
Variable expenses are costs that change in amount from month to month. Groceries, fuel, utilities and entertainment are common examples, since the bill depends on usage or choices. They are usually contrasted with fixed expenses, which stay roughly the same, and the contrast matters most when income also changes from one period to the next.
Source: Consumer Financial Protection Bureau, Financial terms glossary
Every term on Lever is in the money glossary.
About this module
So it doesn't depend on a good month is part of Saving, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Saving
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1
The fund that catches you
Build a small emergency fund first, know what really counts as an emergency, and refill it after you use it.
5 lessons -
2
Money with a name on it
Give your savings a job, plan for more than one goal at a time, and work backward from a date to a monthly amount.
9 lessons -
4
Three ways to divide a month
Three popular ways to budget, including 50/30/20 and envelopes, and how to pick the one you’ll actually stick with.
6 lessons -
5
Running a tanda
How savings circles like tandas work, what your turn in line is worth, and what to check before you join one.
8 lessons -
6
Money sent home
The hidden costs of sending money abroad, and how to get more of it to the people who need it.
6 lessons -
7
The money that shows up all at once
Make the most of a bonus or refund: decide what it’s for before it arrives, and when paying off debt is the better move.
5 lessons -
8
When your own money buys less each month
Why money that just sits loses value when prices rise, and the one comparison your bank’s ads never show you.
5 lessons -
9
What the app does with your spare change
How round-up saving apps really work, who is holding your money, and the fee that can wipe out what you saved.
5 lessons
Try this module
It’s part of Saving. Lever will bring it to you when you’re ready, or you can go straight there.