What term is commonly used to describe a spending plan?

The term that is commonly used to describe a spending plan is budget. A budget is a financial document that outlines expected income and expenses over a specified period, typically monthly or annually. It serves as a tool for individuals to track their spending, prioritize expenses, and make informed financial decisions based on their income levels.

By creating a budget, individuals can allocate funds to various categories such as necessities, savings, and discretionary spending. This helps in maintaining control over finances and ensuring that spending does not exceed income, ultimately aiding in achieving financial goals. The concept of a budget is foundational in personal finance, as it directly influences how effectively one can manage their money.

The other terms mentioned, such as investment strategy, financial portfolio, and cash flow analysis, relate to different aspects of personal finance but do not specifically refer to a spending plan. An investment strategy focuses on how to grow wealth through investments, a financial portfolio is a collection of assets owned by an individual or institution, and cash flow analysis examines the inflow and outflow of cash within a company or individual's finances. While all these concepts are important for overall financial management, they do not encapsulate the idea of a spending plan as succinctly as a budget does.