This is a small collection of my favorite buzz words and phrases. The more you read my blog, the more you will see these phrases repeated over and over. I wanted to collect them in one place for quick reference.
The three types of income are Earned Income, Business Income, and Investment Income. We want to use our earned income to build multiple income streams from business and investment incomes.
The 4 parts of an investment portfolio are high-interest savings, bonds, stocks, and real estate. In order to be truly diversified, we need to have money working for us in each category. This also prevents us from having to redeem valuable assets (stocks) during a downturn, when we may have to take them at a loss.
The 3 types of budgets are house, investment, and personal. The house budget needs to be extremely detailed and monitored. We need to know every penny leaving the home. The investment budget needs to have an allocation to each of the 4 parts of a portfolio. The personal budget is just so we can control our sometimes need to buy little knickknacks or snacks.
The two types of retirement are institutional retirement and generational retirement. An institutional retirement is a standard retirement that is focused on paying off a mortgage and consumer debt. And living off of 401K and social security. A generational retirement has the same goals but also has businesses and investment portfolios that can be passed on to future generations.
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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