Shoestring

A A A

DEFINITION

A slang term used to describe a small amount of money that is considered to be inadequate for its intended purpose. A shoestring can be used in a number of idioms, such as: "The company financed that last project on a shoestring," or "Jim is living off of a shoestring budget."

INVESTOPEDIA EXPLAINS

Although a shoestring budget is considered inadequate, it may just be enough for an individual to live on or for a company to profit from a project. For companies, a particular project's return on investment would be much greater, due to the lower initial cost.


RELATED TERMS
  1. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment or to ...
  2. Investment

    An asset or item that is purchased with the hope that it will generate income ...
  3. Personal Finance

    All financial decisions and activities of an individual, this could include ...
  4. Project Finance

    Defined by the International Project Finance Association (IPFA) as the following: ...
  5. Budget

    An estimation of the revenue and expenses over a specified future period of ...
  6. Capital Gearing

    The degree to which a company acquires assets or to which it funds its ongoing ...
  7. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned ...
  8. Collaborative Consumption

    The shared use of a good or service by a group.
  9. Debt Consolidation

    The act of combining several loans or liabilities into one loan. Debt consolidation ...
  10. Personal Spending Plan

    Similar to a budget, a personal spending plan helps outline where income is ...
Related Articles
  1. How To Invest On A Shoestring Budget
    Investing Basics

    How To Invest On A Shoestring Budget

  2. Your Financial Life: From Stressful ...
    Insurance

    Your Financial Life: From Stressful ...

  3. Run Your Finances Like A Business
    Entrepreneurship

    Run Your Finances Like A Business

  4. A Day Without Spending, A Lifetime's ...
    Budgeting

    A Day Without Spending, A Lifetime's ...

  5. Debt Consolidation: When It Helps, When ...
    Credit & Loans

    Debt Consolidation: When It Helps, When ...

  6. How do I lower my debt-to-income (DTI) ...
    Credit & Loans

    How do I lower my debt-to-income (DTI) ...

  7. How To Keep Debt Low
    Credit & Loans

    How To Keep Debt Low

  8. Find The Right Financial Advisor
    Budgeting

    Find The Right Financial Advisor

  9. When Financial Crisis Strikes The Bank ...
    Budgeting

    When Financial Crisis Strikes The Bank ...

  10. Retirement Travel: Good And Good For ...
    Retirement

    Retirement Travel: Good And Good For ...

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center