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Compound interest Earning interest on interest
Consumption The purchase of goods and services
Do it yourself When you complete a task yourself rather than paying someone else
Emergency savings Cash set aside to cover the cost of unexpected events
Interest Price paid for using someone else's money
Interest rate Percentage rate used to calculate interest
Liquidity how quickly and easily assets can be accessed and converted into cash
Pay yourself first Saving for the future by putting money aside before paying regular monthly bills or using income for discretionary purchases
Principal The original amount of money saved or invested
Saving Accumulation of excess funds by intentionally spending less than you earn
Savings Portion of income not spent on consumption
Time value of money Money available at the present time is worth more than the same amount if received in the future
Created by: 1524686