Do you understand financial Jargon?
Financial jargon can be a barrier for many when trying to navigate the world of finance. It’s time we make this complex language more accessible.
Here’s why understanding financial jargon matters:
- Empowerment: When you comprehend financial terms, you’re in more control of your own financial security.
- Confidence: Knowledge is confidence. Understanding the lingo allows you to make informed decisions about your money.
- Transparency: Demystifying complex terms promotes transparency, fostering trust in the financial industry.
- Education: A grasp of jargon opens the door to financial education, making you a more informed investor.
Let’s make finance less intimidating. I have listed a few jargon terms which you may have heard:
- ‘ROI‘ means Return on Investment – it is about how much you lose (or gain) from an investment
- ‘Diversification‘ is like not putting all your eggs in one basket. It spreads risk by investing in different assets
- ‘Liquid Assets‘, because money is based on water – hence the term liquidity, things that can be converted to cash easily without losing value.
- ‘Asset Allocation‘ is simply how you divide your investments among different types of investments, so commercial property, commodities or company shares are examples of assets.
Understanding these terms can transform how you manage your finances and investments.
Let us know your thoughts on simplifying financial jargon or any jargon you’d like to learn more about! Let’s empower each other with knowledge
