Glossary of terms

Your overall financial position - the value of your assets minus your debts. Or the difference between what you own and what you owe.

The money you make on your investment without taking into account inflation. Your real return on an investment is where allowance is made for inflation. For example if your investment has achieved a nominal return of 10% and inflation was 2% then your real rate of return is 10% less 2% giving a return of 8%.