All the jargon used in the industry can make investing seem scary and complicated. Which causes many to not invest and miss out on the power of compound interest. There are a lot of terms in investing, but I know you won’t let them stop you from investing. Below are the 100 investing terms you should know. Market Terms The stock market is a marketplace that trades securities, like stocks.
Investing is using a resource (time, money, energy) with the expectation of achieving a future benefit or gain. When you invest money, you are spending money to own an asset. With the goal of generating income, growing value, or both. The power of investing is allowing the power of compound interest, dividends, and appreciation to grow money. The Plan Investing is a plan to grow money. This plan involves setting
The purpose of an emergency fund is to provide cushion and protection when life happens. Having one will allow you to focus on the situation rather than stress about money. Giving you time to recover and heal as you get back to normal. An emergency fund is like insurance that protects you from the unexpected. Allowing you to be reimbursed instantly for a claim and providing you with many benefits and
Saving is setting money aside for one of the three types of savings: emergency, goal, and irregular expense. No matter the type of savings, how to save is the same. You must define the goal, secure the funding, and accumulate the savings. Define the Goal Like everything in life, saving has to have a purpose. You decide this purpose. By answering the questions of what, when, how, and where you
Saving is to not use something now, intending to use it in the future. In money terms, saving is income not spent or deferred consumption. It’s calculated by taking income minus expenses. So, if monthly income was $2,000 and expenses were $1,800, the savings would be $200. When I think of saving, I think of setting money aside for one of the three types of savings: emergency, goal, and irregular
How was 2020? Well, I think the answer will be different depending on one’s situation. So it depends. Of all the years I have been alive (27 and counting), 2020 is the year of “It depends” to me. How you feel about 2020 depends on one thing: Control. Coming into 2020 were you in control of your life, money, etc. Did you remain in control throughout 2020? Now, you may