Variable Expense
Costs that change every month, like electricity (AC in summer), groceries, or entertainment. These are the hardest to budget for and need a "buffer."
Fixed Expense
Costs that stay the same, like Rent, EMI, or Netflix subscriptions. These are easy to predict.
Discretionary Income
The money left over after you pay for all your Needs. This is what you allocate to Wants and Savings.
Fiscal Drag
When inflation or rising costs push you into a higher spending bracket without a corresponding increase in lifestyle value. Essentially, paying more for the same life.
Zero-Based Budgeting
A method where every rupee is assigned a job until you have ₹0 left. It forces you to be intentional about every single expense.