Financial Concepts
Clear, evergreen definitions of the ideas that shape how money works.
A–Z Index
50/30/20 Budget Rule
The 50/30/20 budget rule divides take-home income into 50% needs, 30% wants and 20% saving or extra debt repayment—a flexible guide, not a requirement.
Compound Interest
Interest earned on both the original principal and on the interest that has already accumulated.
Daily Pool
A digital, regional community-finance mechanism where every member contributes a small fixed daily amount and one active member receives the pool each day.
Emergency Fund
Cash set aside specifically to cover unexpected expenses without borrowing, ideally kept separate from everyday spending.
Impact Fund
Small amounts. Big impact. The giving feature of Squirrelll.ing: a fixed, insignificant amount donated automatically on a daily or weekly schedule to organizations you choose.
Microfinance
Financial services — savings, credit, insurance, and payments — delivered in very small amounts to people traditionally excluded from formal banking.
Pay Yourself First
The practice of automating savings on the day income arrives — before any discretionary spending.
ROSCA
A group where members contribute a fixed amount to a shared pot at set intervals, and one member receives the full pot each cycle until everyone has received.
Zero-Based Budgeting
Zero-based budgeting assigns every unit of take-home income to expenses, saving or debt payments, leaving zero unallocated—not zero in your bank account.