Английский для личных финансов: ключевые термины и фразы

"zero-based budget"

A budgeting method where every dollar of income is assigned a specific purpose so that income minus expenses equals zero

""We use a zero-based budget, so every paycheck is allocated before the month even begins.""

"discretionary spending"

Non-essential expenses that can be reduced or eliminated without affecting basic needs

""Dining out and subscriptions fall under discretionary spending, so those were the first cuts when money got tight.""

"fixed expenses"

Regular costs that remain the same each month regardless of usage, such as rent or loan payments

""Our fixed expenses total $2,200 a month, so I know exactly what we need to cover before anything else.""

"variable expenses"

Costs that change from month to month based on consumption or choices, such as groceries or utilities

""Variable expenses like electricity and food are harder to predict, but I track them weekly to spot trends.""

"cash flow"

The movement of money into and out of your accounts; positive cash flow means more comes in than goes out

""Even with a decent salary, poor cash flow management left her overdrawn every month.""

"pay yourself first"

A savings strategy where you set aside a portion of income for savings before paying any other expenses

""He set up an automatic transfer so he could pay himself first — $500 moved to savings the moment his paycheck hit.""

"spending categories"

Labeled groups used to organise expenses in a budget, such as housing, transport, food, and entertainment

""I split our budget into twelve spending categories so we can see exactly where the money goes each month.""

"budget surplus"

The amount of money left over at the end of a budget period after all planned expenses have been covered

""After covering all the bills, we had a $300 budget surplus that went straight toward the car loan.""

"emergency fund"

A reserve of savings set aside exclusively to cover unexpected expenses such as job loss, medical bills, or urgent repairs

""When her car engine failed, her emergency fund covered the repair bill without touching the monthly budget.""

"high-yield savings account"

A deposit account that pays a significantly higher interest rate than a standard savings account

""Moving our emergency fund to a high-yield savings account added nearly $400 in interest over the year.""

"liquidity"

The ease with which an asset can be converted into cash without significant loss of value

""Keep your emergency fund in a liquid account — you need access within days, not weeks.""

"sinking fund"

A dedicated savings pool set aside gradually over time for a known upcoming expense, such as a holiday or car purchase

""We run a sinking fund for Christmas gifts so December never blows the budget.""

"compound interest"

Interest calculated on both the principal and the accumulated interest from previous periods, causing savings to grow exponentially over time

""Thanks to compound interest, the $5,000 she deposited at 25 was worth over $40,000 by the time she retired.""

"annual percentage yield (APY)"

The actual rate of return earned on a savings account in one year, including the effect of compounding interest

""The bank advertised a 4.5% APY, which is the real return after compounding is factored in.""

"rainy-day fund"

A smaller, informal savings reserve for minor unexpected costs, distinct from a full emergency fund

""A rainy-day fund of $500 to $1,000 handles small surprises like a broken appliance without stress.""

"savings rate"

The percentage of your income that you set aside as savings each month or year

""Raising our savings rate from 8% to 20% of income made a dramatic difference to how quickly our net worth grew.""

"index fund"

A type of investment fund that tracks a market index such as the S&P 500, providing broad diversification at low cost

""Rather than picking individual stocks, she put everything into a low-cost index fund and left it alone.""

"asset allocation"

The strategy of dividing an investment portfolio among different asset categories such as stocks, bonds, and cash

""At 35, his asset allocation was 80% stocks and 20% bonds, shifting more conservative as he neared retirement.""

"diversification"

Spreading investments across different assets, sectors, or geographies to reduce the impact of any single poor performer

""Diversification meant that when the tech sector crashed, her portfolio only dropped 8% instead of 30%.""

"dollar-cost averaging"

Investing a fixed amount of money at regular intervals regardless of the current market price

""By dollar-cost averaging $300 every month, he automatically bought more shares when prices were low.""

"portfolio rebalancing"

Periodically adjusting the proportions of assets in a portfolio back to the target allocation after market movements have shifted them

""Annual portfolio rebalancing ensured she was never accidentally taking on more risk than intended.""

"risk tolerance"

The degree of variability in investment returns that an investor is willing to accept given their financial situation and emotional comfort

""His low risk tolerance meant he slept better with a conservative portfolio, even though expected returns were lower.""

"capital gains"

The profit realised from selling an asset for more than its original purchase price

""She held the shares for over a year to qualify for the lower long-term capital gains tax rate.""

"expense ratio"

The annual fee charged by a mutual fund or ETF expressed as a percentage of assets under management

""Switching from a fund with a 1.2% expense ratio to one at 0.05% saved thousands in fees over a decade.""

"credit score"

A numerical rating, typically from 300 to 850, that represents a person's creditworthiness based on their borrowing history

""Her credit score jumped 40 points after she paid down her credit card balance below 30% utilisation.""

"debt avalanche"

A debt repayment strategy that targets the highest-interest debt first to minimise total interest paid

""Using the debt avalanche method, she attacked the 24% credit card before the 6% student loan.""

"debt snowball"

A debt repayment strategy that pays off the smallest balance first to build psychological momentum

""He preferred the debt snowball because clearing small balances quickly kept him motivated to continue.""

"credit utilisation ratio"

The percentage of your available revolving credit that you are currently using, a major factor in credit scoring

""Keeping the credit utilisation ratio below 30% is a commonly cited benchmark for maintaining a strong credit score.""

"amortisation"

The process of paying off a debt through regular scheduled payments that cover both principal and interest

""The amortisation schedule showed that most of the first five years of mortgage payments went toward interest, not principal.""

"annual percentage rate (APR)"

The yearly cost of borrowing money expressed as a percentage, including interest and fees

""The personal loan looked attractive at 8% interest, but the APR was 11% once origination fees were included.""

"secured debt"

A loan backed by collateral that the lender can seize if repayments are not made

""A mortgage is a classic example of secured debt — the bank can foreclose on the house if you stop paying.""

"minimum payment trap"

The situation where only making minimum payments on a credit card results in paying far more interest over a much longer period

""The credit card statement showed that falling into the minimum payment trap on $5,000 would take 17 years to clear.""

"401(k)"

A US employer-sponsored retirement savings plan that allows employees to contribute pre-tax income, often with an employer match

""She contributed enough to her 401(k) to get the full employer match — leaving free money on the table was not an option.""

"employer match"

A contribution made by an employer to an employee's retirement account that matches a portion of the employee's own contributions

""The company offers a 50% employer match up to 6% of salary, which is effectively a 3% pay rise for anyone who takes it.""

"Roth IRA"

A US individual retirement account funded with after-tax dollars, where qualified withdrawals in retirement are completely tax-free

""Because she expected to be in a higher tax bracket at retirement, she chose a Roth IRA over a traditional account.""

"required minimum distribution (RMD)"

The minimum amount the US government requires you to withdraw annually from certain retirement accounts once you reach a specified age

""Forgetting to take the required minimum distribution resulted in a 25% penalty on the amount not withdrawn.""

"vesting schedule"

The timeline over which an employee earns full ownership of employer contributions to their retirement account

""His employer contributions followed a four-year vesting schedule, so he waited until he was fully vested before changing jobs.""

"sequence of returns risk"

The risk that the order of investment returns, especially poor returns early in retirement, can permanently deplete a portfolio

""Retiring just before a major market crash exposed her to sequence of returns risk, which forced a reduction in withdrawals.""

"safe withdrawal rate"

The percentage of a retirement portfolio that can be withdrawn each year with a high probability that the funds will not run out

""The widely cited 4% safe withdrawal rate suggests withdrawing no more than 4% of your portfolio in the first year of retirement.""

"financial independence"

The state of having sufficient passive income or assets to cover living expenses without needing to work for money

""After fifteen years of aggressive saving and investing, they reached financial independence at 44 and chose to retire early.""

"deductible"

The amount you pay out of pocket for a covered loss before your insurance company begins to pay

""With a $1,500 deductible on the home policy, small claims were not worth filing as they would barely exceed the threshold.""

"premium"

The regular payment made to an insurance company in exchange for coverage, typically monthly or annually

""Raising the deductible from $500 to $2,000 cut the annual premium by nearly $400.""

"term life insurance"

Life insurance that provides coverage for a specified period; if the insured dies within the term, the beneficiary receives a death benefit

""They bought a 20-year term life insurance policy to cover the mortgage if either parent died before the children were grown.""

"liability coverage"

Insurance protection that pays for legal and financial obligations if you are responsible for injury to another person or damage to their property

""After backing into a neighbour's car, her liability coverage paid for the repairs without any out-of-pocket cost.""

"beneficiary"

The person or entity designated to receive the proceeds of an insurance policy or retirement account upon the policyholder's death

""She updated her beneficiary designations after her divorce to ensure the money would go to her children, not her ex-spouse.""

"underwriting"

The process by which an insurer evaluates the risk of insuring an applicant and determines the premium to charge

""A history of health conditions made underwriting more complex, and the insurer requested additional medical records.""

"out-of-pocket maximum"

The most you will have to pay for covered healthcare services in a plan year, after which the insurer covers 100%

""Once the family hit the out-of-pocket maximum in July, all remaining medical bills for the year were fully covered.""

"umbrella policy"

Extra liability insurance that covers claims beyond the limits of standard home or auto policies

""After accumulating significant assets, they purchased an umbrella policy for $1 million in additional liability protection.""