This document defines key financial terms used to understand expenses, assets, liabilities, and credit situations. It distinguishes between fixed expenses that remain constant each month, variable expenses that fluctuate, and fixed variable expenses whose costs change slightly. Assets are things owned that have value, while liabilities are debts owed. Being solvent means having more assets than debts, while being insolvent is having more debts than assets. The document also defines favorable and unfavorable credit situations, as well as other terms like disposable income and discretionary income.