It's business time. Because you'll probably face some negotiations, confusing documents, and tough choices on the path to more money. These Skimm'd terms can help you with all of that.
Active Income: when you work hard for the money (your salary, tips, commission, etc.) that hits your bank account.
BATNA: stands for Best Alternative to a Negotiated Agreement. It’s the move you’ll make if talks don’t go well. Aka your back-up plan.
Commission: what you’ll earn for providing a service or making a sale. Usually a percentage of that service or item’s total cost.
Counteroffer: the proposal you or your boss come back with when the OG offer doesn’t cut it.
Equity: your piece of the company pie. It’s what you’d get if they sell or shut their doors. Or whenever you wanna cash out.
Passive Income: the kind of money you don’t want to pass on. Because you didn’t have to do (much) work for it. Think: investment earnings, cash from Airbnbing an extra room, or credit card rewards.
PTO: the benefit that helps you go OOO. Your employer combines vacation, sick, and personal time into one “paid time off” policy.
Self-employment: when you’re your own boss. And handle things like health insurance and taxes all by yourself.
Stock Options: a type of equity compensation. Where you’re given the chance to buy (some) shares of the company at a discount or fixed price down the line. Peep your company’s valuation to see what they could be worth.
Total Comp Package: all the pay you get from a job. Including base salary plus bonus and commission opps. And the dollar value of any equity, insurance, PTO, retirement accounts, and benefits.
You can probably think of a ton of excuses to avoid budgeting. Now, not speaking the language can’t be one of them.
Speaking the 'savings' language is part of the fun(d). Brush up on the terms you need to know.
Because money makes the world go 'round.