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
- Passive IncomeMoney you earn with little ongoing effort, such as from investments, rentals, or royalties, rather than from active work.
- AppreciationAn increase in an asset's value over time, such as a home or stock becoming worth more than you paid.
- Illiquid AssetsThings you own that take time or effort to sell for cash, such as real estate or a small business stake.
- Cash FlowThe movement of money into and out of your accounts over time, showing whether more comes in than goes out.
- Capital GainsThe profit you make when you sell an investment or asset for more than you paid to buy it.
- 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.