Glossary
Most of what we talk about here is finances. Personal finances, to be exact, and even more personal because we write
from our own experience. So this is a personal, personal finance website, and this is our glossary.
This stuff makes sense to us, and when we write we don’t think twice about the terms that we are using,
simply because this is our language. So the purpose of this page is to help give definition to the different financial
terms we use. This way you know exactly what we mean when we say “spending plan,” for example. Linked terms will take
you to an external website that defines the technical side of the term.
If you find a term on our site that is not included here, please let us know
and we will be sure to add it for you!
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
B
- Balance Checkbook
- making sure your checkbook register matches your bank statements.
- Borrow
- the act of using someone else’s money with the intent of paying it back.
- Budget
- (see also Spending Plan)
- Budgeting
- to plan ahead with your money; the act of “plotting the course”
C
- Cash
- cold, hard, green dollar bills or money from your checking account used by check or check card (debit card).
- Category
- Makes up your spending plan. You may have categories like: Auto, Entertainment, Home, etc…
- Conscience Decision
- The split second decision your mind makes when given a problem to solve: use the credit card for that TV, don’t by the TV.
- Credit Card
- An evil piece of plastic that should be cut into small pieces.
D
- Debt
- What you have when you borrow money.
- Denial
- Acting like your debt, and other personal problems, will just go away with you doing absolutely nothing.
E
- Emergency Expense
- The engine of your car falling out, broken refrigerator, any home repair not planned for.
- Emergency Fund (see also One Month Living Expence (fund))
- The cushion you give yourself so you do not have to borrow (credit card, bank, or family/friend) money to meet the emergency expense head on.
F
- Financial Freedom
- Fund Raiser
- Not just for non-profits, or religious organizations. This is a great way for you to keep track of your debt repayment or other financial goals. Also a good motivator.
G
H
I
- Investing
- The act of turning $1 into $2
- Investments
- House flipping, stocks, mutual funds, basically anything that has the potential to make that $1 turn into $2.
J
K
L
- Loan
- Money borowed with written agreement to repay.
M
- Money (See also cash)
- Makes the world go ’round, if handled correctly.
- Mortgage Insurance (”MI”, or “PMI”)
- Insurance that protects the lender of your mortgage in-case you cannot repay. More Information.
N
O
- One Month Living Expense (fund), (see also Emergency Fund)
- Having the amount necessary for you to live on for one month, in your savings account, available only when needed (lost job, injury, etc…).
P
- Payment
- Money in, not out.
- Personal Finances
- Your money, assets, and investments.
- Planning Ahead
- See also: budget, emergency fund, one month living expense (fund).
- Purchases
- Money out. Bills, groceries, payments on debt, cable, internet, etc…
Q
R
- Retirement
- The point in your life when you do not have to have a constant stream of income to survive. Takes a lucky break or wise planning now.
S
any given month
T
- Three Months Living Expenses
- Three month’s of cushion in-case you need it. See also One Month Living Expense (fund).
U
V
W
- Wisdom
- That inner voice that is too quiet. The one that tells you what is true, the one that can tell the difference between a want and a need. It’s that small voice that will keep you on the path towards financial freedom.
X
Y
Z
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