Educational Terms

Everything By You is an educational resource. Content, calculators and checklists are for general information only and are not financial, legal, medical or professional advice. Below are plain-language definitions of terms used across the site.

50/30/20 rule

A budgeting guideline: 50% needs, 30% wants, 20% savings and debt repayment.

Asset allocation

How your money is divided among asset classes such as equity, debt and gold.

Bucket strategy

Splitting retirement savings by time need: cash, debt and growth assets.

CTC

Cost to company: the total yearly cost of an employee, including benefits, before deductions.

Co-payment

The share of a claim you pay yourself under a health policy.

Compounding

Earning returns on previous returns, so growth accelerates over time.

Credit score

A number (300–900 for CIBIL in India) summarising repayment history. Higher is better; 750 and above is usually viewed favourably.

Credit utilisation

The share of your credit limit you are using. Lower is generally better.

Deliberate practice

Focused, goal-directed practice on the hard parts of a skill with feedback.

DigiLocker

A Government of India digital service for storing and sharing official documents.

EPF

Employees’ Provident Fund: a retirement savings scheme with contributions from employee and employer.

Emergency fund

Cash set aside for unexpected costs such as job loss or medical bills, usually 3–6 months of essentials.

Expense ratio

The yearly fee a fund charges, shown as a percentage of assets. Lower costs leave more for the investor.

Inflation

The general rise in prices that reduces what money can buy.

Moderate-intensity activity

Exercise that raises your heart rate but still lets you talk, such as brisk walking.

Mutual fund

A pooled investment managed by professionals that invests in shares, bonds or other assets.

NPS

National Pension System: a market-linked retirement scheme regulated by PFRDA.

Nominee

A person named to receive an account or policy proceeds. A nominee is not always the final legal owner.

Old vs new tax regime

Two ways to compute income tax. The old regime allows many deductions; the new one has lower slab rates with fewer deductions. Compare each year.

PPF

Public Provident Fund: a government-backed long-term savings scheme with a 15-year tenure. Check current rules and rate.

Pomodoro technique

Working in 25-minute focus blocks with 5-minute breaks.

Power of attorney

A document that authorises another person to act for you in specified matters.

Rebalancing

Adjusting your portfolio back to target proportions, usually once a year.

Rule of 72

Divide 72 by an annual return percentage to estimate years needed to double money.

SIP (Systematic Investment Plan)

Investing a fixed amount in a mutual fund at regular intervals, usually monthly.

Sarcopenia

Age-related loss of muscle mass and strength.

Section 80C

An income-tax provision under the old regime allowing deductions on certain investments and expenses up to a limit.

Spaced repetition

Reviewing information at increasing intervals to strengthen memory.

Sum insured

The maximum amount a health insurer will pay in a policy year.

Super top-up

A health cover that activates after your base policy’s limit or a deductible is crossed, usually at lower cost.

Term insurance

Pure life cover that pays your family a sum if you die within the policy term. It has no maturity benefit.

Two-factor authentication (2FA)

A second proof of identity, such as a code, in addition to a password.

Waiting period

Time after buying a health policy before certain conditions or treatments are covered.

Will

A legal document stating how your assets should be distributed after death.

Withdrawal rate

The percentage of a retirement corpus taken out each year to live on.