Glossary Financial Terms
V - X Variable expenses
Expenses that are not fixed, and can change.
Variable interest rate
Where interest is paid (received) at a
variable rate over the term of a loan (investment).
W Wealth creation
An umbrella term used to mean the strategies
you put in place to create a better financial situation for
yourself in the future – these can include superannuation,
investment, property ownership and a raft of other ways to
achieve your end goals, including making sure you have an
appropriate level of insurance. For example salary sacrifice
into super (see above) is a very tax-efficient way to save. In
some cases borrowing to invest can allow your interest to be
tax-deductible, and there may be other efficiencies like paying
interest in advance. Your financial planner will be able to let
you know of the most tax-efficient ways to save and invest.
Y Yield
The return earned on an investment taking
into account the annual income and its present capital value. |
