finances - Concepts
Explore concepts tagged with "finances"
Total concepts: 15
Concepts
- Rat Race - The self-defeating cycle of working to earn money to fund a lifestyle that requires continued work.
- 20% Rule - An investment strategy recommending that roughly 20% of a portfolio be allocated to alternative investments uncorrelated with the stock market.
- Customer Acquisition Cost (CAC) - The total cost of acquiring a new customer, including marketing and sales expenses.
- Financial Independence - Having enough income from assets to cover living expenses without needing to work.
- Time-Money Tradeoff - The fundamental tension between trading time for money through work and using money to buy back time and freedom.
- Lifestyle Inflation - The tendency to increase spending as income rises, preventing wealth accumulation and financial freedom.
- Passive Income - Income generated with minimal ongoing time investment, decoupling earning from active labor.
- Profit First - A cash management system for businesses that allocates profit before expenses, reversing the traditional formula.
- Golden Handcuffs - Financial incentives that discourage leaving a position, trading personal freedom for compensation.
- Mental Accounting - The tendency to treat money differently based on subjective categories.
- Past Performance Fallacy - The principle that historical results and past successes do not guarantee or reliably predict future outcomes.
- Grossman-Stiglitz Paradox - The paradox that if markets are informationally efficient, there is no incentive to gather information, which undermines that efficiency.
- Feast or Famine Cycle - The boom-bust pattern in freelance and creative work where income and workload oscillate between abundance and scarcity.
- Running Costs Influence - How ongoing operational costs affect decision-making, often more than initial investment costs.
- Marketing ROI - The return on investment from marketing activities, measuring revenue generated relative to costs.
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