Vocabulary

• Side Hustle – This is a way to make some extra cash that allows you flexibility to pursue what you're most interested in.
• Entrepreneur – A person who sets up a business or businesses, taking on financial risks in the hope of profit.
• Passive Income – Earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved.
• Venture Capital – Financial capital provided by investors to startup firms and small businesses with perceived long-term growth potential.
• Return on Investment (ROI) – A performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
• Profit Margin – A measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.
• Cash Flow – The total amount of money being transferred into and out of a business, especially as affecting liquidity.
• Overhead – Business expenses that are not directly linked to producing goods or services.
• E-Commerce – The buying and selling of goods and services over an electronic network, primarily the internet.
• Dropshipping – A retail fulfillment method where a store doesn't keep the products it sells in stock.
• Affiliate Marketing – A marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.
• Freelancing – Working on a contract basis for a variety of companies, as opposed to working as an employee for a single company.
• Invoice – A list of goods sent or services provided, with a statement of the sum due for these; a bill.
• Online Marketplace – A type of e-commerce site where product or service information is provided by multiple third parties.
• Blogging – A regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.
• Gig Economy – A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.
• Revenue Streams – The individual methods by which money comes into a company.
• Bootstrapping – Starting and growing a business with no outside investment.
• Crowdfunding – The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.
• Angel Investor – A wealthy individual who provides funding for a startup, often in exchange for equity in the company.
• Business Plan – A written document that describes in detail how a business is going to achieve its goals.
• Market Research – The action or activity of gathering information about consumers' needs and preferences.
• Business Model – A plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.
• Scalability – The ability of a system, network, or process to handle a growing amount of work in a capable manner or its potential to be enlarged to accommodate that growth.
• Franchise – A business system in which private entrepreneurs purchase the rights to open and run a location of a larger company.
• Net Worth – The total assets minus total outside liabilities of an individual or a company.
• Sole Proprietorship – A type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
• Partnership – A business organization in which two or more individuals manage and operate the business.
• Corporation – A company or group of people authorized to act as a single entity and recognized as such in law.
• Limited Liability Company (LLC) – A corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities.
• Stocks – A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
• Bonds – A fixed income instrument that represents a loan made by an investor to a borrower.
• Mutual Funds – An investment vehicle made up of a pool of moneys collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
• ETFs (Exchange-Traded Funds) – An investment fund and exchange-traded product, with shares that are tradable on a stock exchange.
• Dividends – A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
• Capital Gains – An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.
• Budget – An estimate of income and expenditure for a set period of time.
• Savings Account – A deposit account held at a retail bank that pays interest but cannot be used directly as money.
• Checking Account – A deposit account held at a financial institution that allows withdrawals and deposits.
• Credit Card – A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
• Debit Card – A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.
• Mortgage – A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property.
• Interest Rate – The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
• Loan – A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
• Bankruptcy – A legal status of a person or other entity who cannot repay debts to creditors.
• Insurance – A practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
• Tax – A compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.
• 401(k) – A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out.
• IRA (Individual Retirement Account) – An investing tool used by individuals to earn and earmark funds for retirement savings.
• Real Estate – Property in the form of land or buildings.