Editing Personal Finance (section)

== <span style="color: #FFFFFF;">Remembering</span> ==
Key terms:

* '''Net worth''' � total assets minus total liabilities; the most accurate single snapshot of financial health.
* '''Cash flow''' � money coming in (income) minus money going out (expenses) in a given period.
* '''Budget''' � a plan allocating income to categories of spending, saving, and investing.
* '''Emergency fund''' � liquid savings set aside to cover unexpected expenses, typically 3�6 months of essential living costs.
* '''Compound interest''' � interest calculated on both principal and previously earned interest; the mechanism by which money grows exponentially over time.
* '''Inflation''' � the general rise in price levels over time; reduces the purchasing power of cash held idle.
* '''Gross income''' � total income before taxes and deductions.
* '''Net income (take-home pay)''' � income after taxes and deductions.
* '''Asset''' � anything of value you own (cash, investments, property, vehicles).
* '''Liability''' � money you owe (loans, credit card balances, mortgage).
* '''APR''' (Annual Percentage Rate) � the annual cost of borrowing, including fees; used to compare debt products.
* '''Liquidity''' � how quickly an asset can be converted to cash without significant loss of value.
* '''Diversification''' � spreading investments across different assets to reduce the impact of any single loss.
* '''Tax-advantaged account''' � an account offering tax benefits for saving (e.g., 401(k), IRA, HSA).
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