09/02/2026
💰 MONEY TERMS (EXPLAINED WITHOUT THE JARGON)
Money Terms Businesses Hear All the Time (but rarely understand).
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• Cash Flow
The money actually moving in and out of your business.
You can be profitable and still run out of cash.
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• Profit
What’s left on paper after expenses.
Doesn’t mean the cash is sitting in your bank account.
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• Revenue
Total money earned before any costs.
Big revenue ≠ healthy business.
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• Gross Profit
Income minus direct costs.
• Net Profit
What’s left after everything (tax, overheads, admin).
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• Overheads
Fixed costs that keep the business running
(rent, software, insurance, admin).
They don’t disappear when sales slow down.
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• Liabilities
Money you owe (tax, loans, suppliers).
Ignoring them doesn’t make them go away.
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• Assets
Things your business owns that have value
(cash, equipment, IP, stock).
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• Burn Rate
How fast your business spends money each month.
Critical for startups and growing companies.
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Understanding these terms = better decisions.
Saving money starts with knowing your numbers.
Most money stress doesn’t come from lack of income, it comes from not understanding the language of your finances.
Words like profit, cash flow, and liabilities get thrown around but they mean very different things in practice.
When you understand these terms, you stop guessing. You plan better. You spend smarter. You stay in control.