What is the term for total monthly expenses less total monthly income?

The term for total monthly expenses less total monthly income is known as monthly cash flow. This concept is essential in personal finance as it helps individuals understand how much money is coming in versus how much is going out each month. By calculating the monthly cash flow, you can determine whether you are living within your means, saving money, or facing a deficit, which could lead to debt if expenses exceed income.

Each of the other options relates to broader or different financial concepts. The annual budget refers to a plan for income and expenses over the entire year, while net worth is the difference between total assets and total liabilities, providing a snapshot of overall financial health rather than a monthly assessment. Disposable income specifically refers to the amount of income available after taxes have been deducted, which does not directly account for the expenses incurred during the month. Thus, monthly cash flow is the most precise term for the relationship between monthly income and expenses.