Assets minus liabilities; a snapshot of your financial position.

Liquid cash buffer for surprises; reduces reliance on high-interest debt.

Earnings on principal plus prior earnings; growth accelerates over time.

Prices rise over time; the same money buys less (focus on real purchasing power).

Spreading risk across assets; reduces dependence on any single outcome.

Income minus expenses; the fuel for saving and investing.

Fixed are stable (rent), variable fluctuate (food). Knowing both helps planning.

Annual Percentage Rate; includes interest and some fees (useful for comparing debt).

Debt with high APR tends to dominate finances; prioritize paying it down.

Paying only the minimum maximizes interest paid and time to payoff.

Percent of credit limit used; high utilization can hurt credit scores.

A fund that tracks a market index; typically low-cost and diversified.

Annual fee as a % of assets; small differences compound over time.

Fees reduce compounding; lowering fees increases long-term outcomes.

Mix of stocks/bonds/cash; primary driver of risk and return.

How much volatility you can emotionally and financially handle.

When you need the money affects how much risk you can take.

Investing a fixed amount regularly; reduces timing risk.

How quickly you can convert an asset to cash without major loss.

Paying a known cost to reduce risk of rare, large losses.

Return after inflation; what matters for future purchasing power.

Return before inflation; can look better than real outcomes.

Money spent in one place cannot be used elsewhere; compare alternatives.

Keep buffers (cash, time, lower fixed costs) to reduce fragility.