Greetings to my hivians, Trust we're doing great? Being here tonight is to share opinion on basic financial terms for everyone, which I belief it's very important for us to know this term, so follow me as I proceed in giving you full details on this topic! Money is a tool, but to use it wisely, you need to understand the language of money. If you're reading this, chances are you've realized how vital it is to take control of your finances. But let's be honest, finance can feel overwhelming with all the jargon thrown around. The good news is that, it doesn't have to be complicated. I'll break it down in a way that's simple, relatable and practical
Here are some basic terms for everyone should know
INCOME
Income is the money you earn, either as a salary, side hustle earnings, or any other source of coming in. Now think of income as the fuel for your financial journey. The key question is, How much is coming in, and how are you spending it?
Tips: Always aim to spend less than you earn. Doing this will make you utilize your income very well
EXPENSES
Expenses is where your money goes, this include rent, groceries, Netflix subscriptions, and even that impulse buy on Amazon. Expenses are divided into two categories: Fixed expenses and Variable expenses
Tips: Track your expenses. You can't fix what you don't measure
BUDGET
Budget is a financial game plan. It's simply a plan that tells your money where to go, instead of wondering where it went. It involve you balancing your income and expenses to ensure you're fully in control
Keep it simple: Use the 50/30/20 rule. Spend 50% of your income on needs, 30% on wants, and save or invest 20%
SAVINGS
Savings is your safety net, money set aside for future use. Whether it's for emergencies, a dream vacation or a big purchase, savings are what keep you from living paycheck to paycheck. So doing will guarantee your financial success
Tips: Start small, even $5 a week, add up over time
INTEREST
Interest can work for you or against you, depending on what you do. It's the cost of borrowing money(like on credit card) or the reward for saving and investing money( like in a savings account)
Now think of it this way: If you're paying interest, you are making someone else richer And if you're earning interest, your money is working for you
DEBT
Debt is money you own, it could be a student loan, a car loan or credit card balance. Not all debt is bad, but too much debt can weigh you down
Tips: Borrow wisely, and avoid borrowing for things you don't need
INVESTMENT
Investment is the money you put to work to grow over time for you, like in stock, real estate and businesses. Investing helps your money makes more money
Tips: Start small, you don't need to be rich before you invest. Platforms like Hive, for instance allow you to grow your digital assets
NET WORTH
Net worth is a snapshot of your financial health. It is the difference between what you own(Assets) and what you owe(Liabilities)
Tips: If your net worth is positive, you are on the right track. If it's negative, focus on reducing debt and building assets
WHY THIS MATTERS
Understand these basic empowers you to make smarter decisions. Imagine navigating through life without knowing what your income is or how much debt you have. Sounds risky right? This terms gives you clarity, control, and confidence over your financial life
MY ADVICE
Start small won't be a bad idea, Pick one term from the list and learn how it applies to your life. Finance doesn't have to be intimidating. The more you understand, the more empowered you'll feel. Let's make 2025 the year you take control of your finances!!!
What financial term from the list resonates with you the most? Let's make conversation on this if you're following me!!!
