A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Time Value of MoneyThe idea that a dollar today is worth more than a dollar later, because money you have now can be invested to grow.
- Financial PlanA written roadmap that maps your income, spending, saving, and investing to reach specific money goals over time.
- Risk ManagementThe practice of identifying financial threats and reducing their impact through insurance, savings, and diversified investments.
- Compound InterestInterest that earns interest — the engine behind long-term growth.
- DiversificationSpreading your money across many different investments so a drop in any single one does less damage.
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Plain-English education — not personalized legal, tax, or investment advice.