Terminology & Abbreviation Guide

(TAG)

This TAG aims to clarify terms & abbreviations used in Cash-Flow-Control (CFC), not all terms in Personal Finance.  

For a more comprehensive Financial Term Glossary, please feel free to visit the website below: 

ABATING-FLOW

Phase-2-Table

A financial condition where outflow of capital becomes less & less over time due to active efforts to control debt-flow, reduce expense-flow  & increase income-flow.

ANNUAL-DEBT-TOTAL

Debt-Flow-Section

The total amount of capital flowing towards servicing debt over a calendar year.

ANNUAL-EXPENSE-TOTAL

Expense-Flow-Section

The total amount of capital flowing towards living-expenses over a calendar year.

AFFLUENCE-FLOW

Phase-4-Table

A financial condition where the flow of capital (cashflow) is geared towards exponential income growth and asset accumulation.

ANNUAL-INCOME-TOTAL

Income-Flow-Section

The total amount of capital-inflow (income) over a calendar year.

ASSET

This is anything that adds to Income.

Physical items should be valued based on the most realistic cash-sale-value.

Assets are the opposite of Liabilities.

CASH-FLOW

The flow of capital through a person's finances.  

Cashflow can be positive (more flowing in than out) or negative (more flowing out than in).  

CASH-FLOW-CONTROL

This is the act of managing and directing cashflow-in & cashflow-out of a person's finances.

CASH-FLOW-TIDE

The alternating forces of cashflow-in & cashflow-out of a person's personal finances over a period of time.

(Monthly, Quarterly, Annual, Lifetime)

COMPOUND-INTEREST

This is interest on (capital+interest). 

People with high FinIQ focus on earning more & more of it while people with low FinIQ end up paying more & more of it.

To perform a compound interest calculation, click on the picture below:

DEBT

This is anything that requires an interest payment.

This is Capital-Outflow.

EXPENSE

This is anything that draws capital out of a person's finances. 

This is Capital-Outflow.

FINANCIAL-INTELLIGENCE

FINIQ

Phase-Table-Element #3

This is the ability of an individual to actively manage and direct cashflow through their finances. 

The higher a person's FinIQ the more control they have over their Cashflow. 

Any person can work on increasing their FinIQ through increasing their Financial Education.

FLOW

Movement in a steady stream or current.

FUN aka LIVING-IT-UP

Phase-Table-Element #4

This is any activity that releases tension & relieves stress.

GRATITUDE aka THANKS-GIVING

GRTD

Phase-Table-Element #5

This is the act of giving without expectation of receiving a direct benefit in return.

INCOME

This is anything that draws capital into a person's finances.

This is Capital-Inflow.

INVESTMENT

This is the use of capital in any endeavour to achieve a profit. 

Investment is a two-sided coin where one side has profit-potential & the other side has loss-potential.  

All investment attempts to beat the diluting/devaluating effects of fiat-currency-inflation over a period of time.

Compound annual growth rate (CAGR) is a business and investment term that is used to 

refer to the average annual growth rate of an investment over a certain period of time.

LIABILITY

This is anything that results in indebtedness and systemically draws capital away from a person's finances.

Liabilities are the opposite of Assets.

LIVING-EXPENSES

LIVEX

Phase-Table-Element #1

These are necessary expenses for continued life in the modern world.

MONTHLY-DEBT-TOTAL

MDT

Debt-Flow-Section

The total amount of capital-outflow towards debt-servicing in a calendar month.

MONTHLY-EXPENSE-TOTAL

MET

Expense-Flow-Section

The total amount of capital-outflow towards living-expenses in a calendar month.

MONTHLY-INCOME-TOTAL

MIT

Income-Flow-Section

Affluence-Driver #1

The total amount of capital-inflow (income) in a calendar month.

To grow affluent, a person's focus should be on continuously growing MIT

NETT-ASSET-VALUE

NAV

Affluence-Driver #2

The total cash-value of the difference between Total Asset Value (TAV) and Total Liability Value (TLV).  

To grow affluent, a person's focus should be on continuously growing NAV

PHASE TRANSITION

PHTR

Phase-Transition-Table 1-2

This is the financial reshuffling required to go from Phase 1 to Phase2. 

 It is the  act of reducing extractive elements (ReduX) and reallocating funds to additive elements (Realox).

Phase-Transition-Table 2-3

This is the financial reshuffling required to go from Phase 2 to Phase 3. 

 It is the  act of reducing extractive elements (ReduX) and reallocating funds to additive elements (Realox).

Phase-Transition-Table 3-4

This is the financial reshuffling required to go from Phase 3 to Phase 4. 

 It is the  act of reducing extractive elements (ReduX) and reallocating funds to additive elements (Realox).

POISON-PILL

P-PILL

Phase-Transition-Table 1-2

This is the amount over & above their MIT the person is spending.  

This is often started and kept going with multiple credit cards and other forms of  compound-interest bearing debt tools.

If not arrested, addressed and reduced to zero, this extractive element inevitably leads to financial ruin

SANGUINE-FLOW

Phase-3-Table

A financial condition where the inflow and retention of capital improves over time due to active efforts to control debt-flow, reduce expense-flow  & increase income-flow.

SAVINGS

This is the building up of capital over time.

REALLOCATION

REALLOX

This is the act of redirecting funds from extractive elements (such as  LivEx or ToxD) to additive elements (such as SaInTr or FinIQ).

REDUCTION

REDUX

This is the act of reducing funds flowing to extractive elements such as  LivEx or ToxD.

SAVING-INVESTMENT-TRADING

SAINTR

Phase-Table-Element #2

This is a person's budget-allocation to savings, investment and trading with the expressed purpose to grow their Monthly Income Total (MIT) and Nett Asset Value (NAV).

SCARCITY-FLOW

Phase-1-Table

A financial condition where the outflow of capital becomes worse over time due to a lack of control over debt-flow, expense-flow  & income-flow.

If not arrested, addressed and reversed, this condition inevitably leads to financial ruin

SIMPLE-INTEREST

This is interest on capital. 

Most financial institutions focus on earning compound interest & paying simple interest to their clients.

To perform a simple interest calculation, click on the picture below:

TIDE

The alternating rising and receding of a flowing volume (such as an Ocean) due to external gravitational influences (such as the Sun, Moon and other Celestial Bodies)

TOTAL-ASSET-VALUE

TAV

Asset-Stack-Section

The total cash-value of all assets accumelated.

TOTAL-LIABILITY-VALUE

TLV

Liability-Stack-Section

The total cash-value of all liabilities accumelated.

TOXIC-DEBT aka DEBT-SERVICING

TOXD

Phase-Table-Element #6

This is all interest-bearing debt.  This is where compound interest is working against you.

Over time, too much of this turns a person's finances from Positive Cashflow (more inflow than outflow) to Negative Cashflow (more outflow than inflow).

Uncontrolled TOXD-accumelation inevitably leads to financial ruin

TRADING

This is the application of capital in a deal between a willing buyer & a willing seller. 

Trading can be any one of the following:

 product for product

service for service

product for medium of exchange

service for medium of exchange

asset for medium of exchange

security for medium of exchange

MoE-A for MoE-B

In the Crypto Universe a "trade" is the buying & selling of digital assets & securities.

The purpose of a trade is to achieve a profit.

In the Hundred Trades Strategy (HTS) the purpose of a trade is to grow Total Portfolio Value (TPV).