The financial gap can be described as follows:
- The primary criterion is the imbalance between current expenses and income. Expenses far exceed income;

- the inability to repay the increased debt leads to more debt being incurred;
Having savings for a rainy day does not protect a person from the prevailing circumstances. A person with a debt gap does not have any savings;
People own assets only as a means of income, whereas a financially stable person can have passive income, such as capital that generates passive income.

A financial gap is a term that describes the difference between what you earn and your expenses. There are many ways that this can happen, but one major cause of a financial gap is when expenses exceed income. When this happens, it becomes necessary to find a way to cover the difference. Some people may get an additional job, while others may start up a side hustle. In some cases, debt repayment or downsizing might be appropriate options.

A financial gap refers to the disparity between the funding a business needs and the resources available to meet those requirements. This discrepancy can arise in various financial contexts, such as budgeting, project financing, or capital investments. Identifying and addressing financial gaps is crucial for businesses to ensure they have adequate funds to operate, expand, or undertake strategic initiatives. It often involves assessing cash flow, securing loans, attracting investors, or implementing cost-effective measures to bridge the financial divide and maintain financial stability. Effectively managing financial gaps is a key aspect of financial planning and sustainable business growth.