Finance glossary
Personal finance, explained in plain English
Short, honest definitions of the finance terms that show up in your statements, your loans, and your conversations with an adviser. No jargon, no upsell — just the meaning, the formula where it helps, and a related calculator if one exists.
All terms
SIP (Systematic Investment Plan)
A fixed monthly mutual-fund investment that averages your cost across market cycles.
Read definition →EMI (Equated Monthly Instalment)
The fixed monthly payment on a reducing-balance loan — same amount, shifting split.
Read definition →Compound interest
Interest earned on previously earned interest — the engine behind long-term wealth.
Read definition →Mutual fund
A pooled portfolio of securities professionally managed on behalf of many investors.
Read definition →Net worth
Everything you own minus everything you owe — your true financial position.
Read definition →Recurring deposit (RD)
A fixed monthly deposit with a bank for a defined tenure, at a contracted rate.
Read definition →Personal finance
Managing your income, spending, saving, investing, and debt — the full picture.
Read definition →Budget
A planned allocation of income across spending and saving categories.
Read definition →Lending (between friends)
Money lent or owed between friends and family — outside the formal banking system.
Read definition →Credit card (and how to track it)
A short-term credit line repaid in a monthly cycle, with interest if unpaid in full.
Read definition →Track everything in one place
Knowing the definition is step one. Step two is having a ledger that uses these concepts for you — Extrack rolls every SIP, EMI, and account into one live picture, without your bank login.
Start free — 30 days, no card