What is a financial plan commonly called?

A financial plan is commonly referred to as a spending plan because it outlines how an individual or household will allocate their income to various expenses, savings, and investments over a specific period. This plan is essential for managing finances effectively, ensuring that expenditures do not exceed income, and helping to meet financial goals.

The spending plan includes details such as regular expenses, discretionary spending, savings goals, and debt repayment. By creating and adhering to a spending plan, individuals can make informed decisions about their financial habits, prioritize their spending, and work towards achieving long-term financial stability.

While the other terms like investment strategy, income allocation, and revenue forecast may relate to specific aspects of finance, they do not encapsulate the comprehensive approach of managing personal finances in the way that a spending plan does. An investment strategy focuses on how to grow wealth through investments, income allocation deals with how to distribute earnings among various uses, and revenue forecast refers to predicting future income. In contrast, a spending plan serves as a holistic roadmap for overall financial management.