I wanted to (finally) give you a money dictionary that doesn’t require a dictionary to understand the word’s definition. That doesn’t exist . . . so I made my own. You know how you explain a term to a friend who doesn’t “get” it? That’s the way it’s written here. Let this glossary be your go-to guide for definitions with a practical perspective whenever you need a little cheat-sheet. Some stuff changes over the years, but these basics never go out of style.
On Brand -
Making sure everything you do in your business— marketing, sales, talking to customers, even the colors you use— is relevant to the company’s goals or message.
Operating Costs -
The day- to- day expenses of running a business, including things like rent, payroll, software and equipment needs, and utilities.
Opportunity Cost -
Opportunity Cost: The amount of money you spend (on a swank new car, for example, or paying down debt) that could be doing something else potentially more valuable for you over time (like going back to school or investing in your business).
Ordinary Income -
Ordinary Income: Income that is taxed at ordinary rates (as opposed to capital gains) and is usually made up of salary, wages, commissions and interest from nonqualified accounts. (See also: Capital Gains)
Hiring people to do tasks for you so you can focus on your core business and make the most of your precious time.