Welcome to the Glossary
This page defines key business, marketing, and investment terms used across Karen Newton International. Whether you’re just starting out or refining your strategy, this glossary of quick explanations will help you move forward with clarity and understanding.
A
- Affiliate Marketing
- A business model where you earn a commission by promoting other people’s or company’s products. You don’t create the product — you simply refer customers using a special tracking link.
- AI Forecasting
- The use of artificial intelligence to analyse data patterns and predict future trends — such as economic growth, inflation, or stock performance — with greater accuracy.
- AI-Powered Entrepreneurship
- The process of building and running an online business using artificial intelligence tools for market research, automation, content creation, and customer engagement — allowing faster and more efficient business setup.
- Ani
- An AI-powered niche finder developed by Karen Newton International. Ani helps entrepreneurs discover profitable niche markets based on interests, keywords, and demand — fast and free in memberships and selected courses
- Appropriations Bill
- A government proposal that authorises spending for specific departments and programs. If these bills aren’t approved on time, parts of government operations may shut down.
- Asset
- Something that puts money in your pocket, such as shares, property, or a business. Assets generate income or grow in value over time.
- Asset Classes
- Categories of investments with similar characteristics. Common classes include equities (shares), property, commodities (like gold/silver), cash, and digital assets like cryptocurrency.
- Asset-Backed Security (ABS)
- An investment product made by bundling loans such as car finance, credit cards, or mortgages into tradeable securities. Investors earn income from the repayments, but rising defaults can quickly reduce their value.
B
- Bank Deposit Guarantee
- A legal safeguard that protects depositors if a bank fails. In 2024, the Bank of England raised the guarantee from £85,000 to £110,000 per person, reflecting growing concern over financial stability.
- Be Your Own Bank
- A wealth-building principle based on using the same methods banks use: keeping cash flow active, reinvesting profits, and maintaining control over money decisions. The goal is to create personal financial independence rather than rely on external institutions.
- Be Your Own Economy
- Karen Newton’s philosophy that financial security comes from self-created income streams – not reliance on employers, markets, or governments. It means building multiple income sources that sustain your lifestyle regardless of external conditions.
- Bond Markets
- The financial marketplace where debt securities such as government and corporate bonds are issued and traded. It includes both the primary market (new issues) and the secondary market (trading existing bonds)
- Bond Yield
- The return an investor receives from holding a bond, expressed as a percentage of the bond’s price. Yields rise when bond prices fall, often due to inflation fears or rising interest rates.
- Boom and Bust Cycle
- The repeated pattern of economic expansion (boom) and contraction (bust) that shapes markets, business growth, and investment returns.
- Bootstrapping
- Starting a business with minimal external funding by relying on personal savings or revenue.
- Budget Deficit
- The gap between what the government spends and what it earns in taxes and revenue. A deficit means more borrowing is required.
- Bullion
- Physical precious metals such as gold and silver, typically in bar or coin form, used as a hedge against inflation and economic uncertainty.
- Business Closures
- When companies shut down permanently due to financial strain, often accelerated during recessions.
C
- Car Finance Commission Case
- A UK court case examining whether car finance companies mis-sold loans by using unfair commission structures. Banks are setting aside funds in anticipation of compensation payouts, which could become the next large-scale financial scandal after PPI.
- Cash ISA
- A type of ISA that works like a standard savings account, offering interest on your deposits, but with the benefit of being tax-free.
- Cashflow
- The movement of money in and out of a business or personal finances. Positive cashflow means you’re earning more than you’re spending.
- Compounding
- Earning interest or income on previous earnings. In investing, it means reinvesting profits to grow wealth over time.
- Compounding Effect
- The process where earnings from an investment — both capital gains and dividends — generate additional earnings over time. Often described as “interest on interest.”
- Consumer Economy
- An economy driven primarily by household spending rather than industrial output or exports. The UK relies heavily on consumer confidence — when people stop spending, businesses and jobs suffer.
- Conversion Rate
- The percentage of visitors who take a desired action on your site — such as signing up, clicking a link, or making a purchase. Higher conversion rates mean more results from the same traffic.
- Corporate Debt
- Money borrowed by businesses to fund operations or expansion. Rising interest rates and slower profits can make it difficult for companies to repay, increasing default risks across the economy.
- Credit Quality
- A measure of a borrower’s ability to repay a loan. Declining credit quality in lending portfolios is often an early indicator of a looming subprime problem.
D
- Debt Ceiling
- The legal limit on how much money a government can borrow to fund its operations. Reaching it can trigger shutdowns or political standoffs.
- Deep Recession
- A prolonged and severe economic decline marked by widespread job losses, business closures, and slower recovery.
- DeFi: Decentralized Finance
- A blockchain-based form of finance that removes intermediaries like banks, allowing users to lend, stake, or earn interest directly.
- Deflation
- The opposite of inflation—when prices fall across the economy, often linked to reduced demand.
- Diversification
- Spreading income or investments across different areas to reduce risk during economic uncertainty.
- Dividend Reinvestment
- The process of using dividend payouts to buy more shares instead of taking them as cash. Over time, this accelerates compounding growth.
- Dividend Shares
- Shares in companies that pay out a portion of their profits to investors regularly, often monthly or quarterly.
- Dividend Yield
- A financial ratio showing how much a company pays out in dividends each year relative to its share price. It reflects income potential rather than growth.
- Doom Loop
- A self-reinforcing cycle where falling tax revenues, rising debt, and weak growth feed each other, trapping the economy in long-term stagnation. The UK’s current economic situation is showing signs of this pattern.
E
- Economic Confidence
- A measure of how optimistic consumers, investors, and businesses feel about the economy’s future. Confidence drives spending, investment, and market momentum.
- Economic Indicator
- A measurable statistic — such as unemployment, inflation, or consumer confidence — used to assess the health of an economy and predict future trends.
- EEAT
- An SEO framework used by Google to evaluate content quality. It stands for Experience, Expertise, Authority, and Trust. The more EEAT your site has, the better chance you have of ranking well.
- Emergency Fund
- Savings set aside to cover essential expenses during unexpected financial hardships, such as job loss in a recession.
- Evergreen Content
- Content that remains relevant and valuable over time, not tied to a specific date or event.
F
- Financial Education
- The process of learning how money works — including budgeting, investing, asset classes, risk management, and economic cycles — to make informed financial decisions and build long-term wealth.
- Financial Freedom
- The point where your assets generate enough income to cover your lifestyle costs, meaning you no longer rely on wages, pensions, or government support.
- Financial Resilience
- The ability to withstand economic shocks or income loss without financial distress. It’s achieved through savings, diversified income, and smart asset management.
- Fiscal Deficit
- The gap between a government’s total spending and its total revenue (excluding borrowing). A persistent deficit adds to the national debt.
- Fiscal Discipline
- Maintaining control over government spending and borrowing to ensure long-term economic stability and avoid unsustainable debt growth.
- Fiscal Drag
- A hidden tax increase that occurs when income tax thresholds don’t rise in line with inflation, causing more people to pay higher rates even if their real income hasn’t increased.
- Fiscal Gap
- The difference between what a government earns in tax revenue and what it spends. A widening fiscal gap often leads to higher borrowing or new taxes to balance the budget.
- Fiscal Policy
- Decisions made by the government about taxation and spending to influence the economy. Fiscal policy directly affects government finances and household budgets.
- Fixed-Income Security
- An investment that pays regular interest over a set period, such as bonds, gilts, or certain preferred shares. Fixed income is considered lower risk compared to equities.
- Flexible ISA
- An ISA that allows you to withdraw and replace money within the same tax year without affecting your annual allowance.
G
- GDP
- The total value of all goods and services produced within a country over a set period. Economists use it as a key measure of economic health.
- Gilts
- UK government bonds. Gilts are issued by the Treasury to raise money and pay investors regular interest until maturity. They are one of the main tools used to finance government spending.
- Gold-to-Silver Ratio (GSR)
- A metric that shows how many ounces of silver are required to purchase one ounce of gold. Investors use it to assess which metal is undervalued and to time conversions between the two.
- Government Finances
- The way a government raises, manages, and spends money to fund public services such as healthcare, pensions, and infrastructure. This includes taxes, borrowing, and debt management.
- GPT
- Short for Generative Pre-trained Transformer, it’s an advanced AI model developed by OpenAI. Tools like ChatGPT use GPT to generate content, answer questions, and automate tasks in business.
- Green Shoots
- A term used to describe the first visible signs of economic recovery after a downturn, such as new job creation or increased consumer spending.
I
- Income Stream
- A source of money generated from work, business, or investments. Examples include wages, affiliate income, dividends, or digital product sales. Wealth grows faster when multiple streams are developed.
- Inflation
- The rate at which the prices of goods and services rise over time. Inflation reduces purchasing power and directly affects interest rates and government borrowing costs.
- Innovative Finance ISA (IFISA)
- An ISA used for peer-to-peer lending or crowdfunding investments, offering potentially higher returns but with higher risk.
- Investment Cycle
- A repeating pattern of expansion, peak, contraction, and recovery that influences asset values and business investment opportunities. Understanding where we are in the cycle helps investors decide when to build or buy.
- ISA Manager
- The bank, building society, or investment platform authorised by HMRC to offer and manage ISA accounts.
- ISA Subscription
- The amount of money you pay into your ISA in a given tax year. All subscriptions count toward your annual allowance.
- ISA Transfer
- Moving ISA funds from one provider to another without losing the tax-free benefits. Transfers must be done through the ISA providers — not by withdrawing and redepositing the funds yourself.
- ISA Withdrawals
- Taking money out of your ISA. In most ISAs, withdrawn funds cannot be replaced without using up your allowance, unless it’s a flexible ISA.
J
- Job Losses
- Layoffs or unemployment that occur when businesses reduce staff to cut costs during economic downturns.
- Joint Venture
- Income that continues to flow after the initial effort has been completed, such as royalties, rent, or digital products.
- Junior ISA (JISA)
- A tax-free savings or investment account for children under 18, with a separate annual allowance (£9,000 for 2025/26).
K
- KNI Ecosystem
- Karen Newton International’s interconnected suite of websites, memberships, and AI tools designed to help entrepreneurs create, grow, and invest their way to financial freedom.
L
- Lead Magnet
- A free resource you offer (like a guide, checklist, or tool) in exchange for a visitor’s email address. Lead magnets are used to build your email list and begin building trust with your audience.
- Lease Option: Property
- A property strategy where you lease a property with the option to buy it later, often used to control property without upfront capital.
- Liability
- Something that takes money out of your pocket, such as consumer debt, a car loan, or high living costs. Liabilities reduce your wealth.
- Lifetime ISA (LISA)
- An ISA for people aged 18–39 to save for their first home or retirement. The government adds a 25% bonus to contributions (up to £1,000 per year).
- Liquidity
- How quickly and easily an asset can be converted into cash without losing value. High liquidity means assets can be sold quickly; low liquidity means they may take longer or require a discount.
M
- Market Volatility
- The degree of variation in trading prices over time. High volatility means bigger swings and higher short-term risk — but also more opportunity for strategic investors.
- Monetary Policy
- Decisions made by the Bank of England about interest rates and money supply to manage inflation and economic stability.
- Monthly Compounding
- An investment strategy where income is reinvested monthly, increasing the compounding effect and accelerating growth.
- Monthly Dividend Shares
- Shares that pay dividends every month, creating a steady income stream that can be reinvested or used for living expenses.
- Multiple Income Streams
- The practice of generating income from various sources—such as business, investments, property, or side hustles—to increase financial security and reduce reliance on a single income.
N
- National Debt
- The total amount of money the government owes to its creditors, built up from borrowing over time to cover spending that exceeds tax revenue.
- Niche
- A specific segment of a market defined by shared needs, interests, or problems. Choosing the right niche helps you stand out and attract a loyal audience that trusts your recommendations.
O
- Online Business
- A business operated primarily through the internet, offering products or services digitally, often with low startup costs.
P
- Partial Transfer
- Moving only part of your ISA funds from one provider to another. Rules vary between ISA types and providers.
- Passive Income
- Money earned without direct, ongoing effort — after the initial setup. Examples include affiliate commissions, rental income, and dividends. In business, passive income lets you earn while you sleep.
- PCA (Price Cost Averaging)
- An investment strategy where a fixed amount is invested at regular intervals regardless of asset price, helping reduce the impact of market volatility over time. Commonly used in share investing.
- Precious Metals
- Safe-haven assets that typically hold or increase value when markets decline, providing a hedge against inflation and economic instability.
- Predictive Modelling
- A type of AI that uses historical data to forecast future events or outcomes, helping investors, businesses, and governments anticipate risks before they occur.
- Primary Markets
- The part of the capital market where new securities are issued and sold directly to investors, such as when the UK Treasury issues new gilts.
- Property Options
- A strategy where investors control property through contracts (options) without the same risks as outright ownership, reducing exposure during recessions.
Q
- Quantitative Easing (QE)
- A policy used by the Bank of England where it buys government bonds to increase demand, lower yields, and make borrowing cheaper. QE was introduced after the 2008 financial crisis.
- Quantitative Tightening (QT)
- The opposite of QE. The Bank of England reduces its bond holdings by selling gilts or letting them mature, which lowers demand, increases yields, and makes borrowing more expensive.
R
- Recession
- A significant decline in economic activity that lasts for an extended period, typically visible in GDP, employment, and consumer spending. Often marked by fear and uncertainty, but also a time of opportunity for prepared investors.
- Recession Cycle Strategy
- A money management and investing plan that uses the predictable boom-and-bust phases of the economy to decide when to buy, hold, or sell assets.
- Residual Income
- Income that continues to flow after the initial effort has been completed, such as royalties, rent, or digital products.
- Risk Tolerance
- An individual’s ability and willingness to endure declines in investment value in exchange for potential gains.
S
- Safe Haven Asset
- An investment expected to retain or increase in value during market turbulence. Gold and silver are traditional safe haven assets.
- Sales Funnel
- A step-by-step process that guides a visitor from first contact to purchase. A funnel might include lead magnets, emails, webinars, and sales pages — all designed to move people closer to buying.
- Secondary Market
- Where existing financial instruments, such as bonds and shares, are traded between investors. The bond market and stock exchanges are secondary markets.
- Shallow Recession
- A mild downturn in the economy that typically lasts only a few months with limited job losses and business impact.
- Smart Entrepreneur
- A term used throughout Karen Newton International to describe business owners who focus on long-term strategy, multiple income streams, and sustainable wealth — not just quick wins.
- Sovereign Debt
- Debt issued by a national government, usually in the form of bonds. The UK issues gilts as its form of sovereign debt.
- Stablecoins
- Cryptocurrencies pegged to real-world assets (such as fiat currency or gold) to reduce volatility while allowing investors to participate in the digital economy.
- Stocks and Shares ISA
- An ISA that allows you to invest in shares, funds, ETFs, and bonds with tax-free growth and dividends.
- Strategic Thinking
- An investment that tends to retain or increase in value during market volatility, like gold, silver, or certain dividend shares.
- Subprime Loan
- A type of loan offered to borrowers with lower credit scores or weaker financial histories. Subprime loans often carry higher interest rates and a greater risk of default. The 2007 financial crisis began when too many subprime mortgages failed.
- Subprime Market
- The sector of the financial system that lends to higher-risk borrowers. In 2025, subprime exposure includes car loans, credit cards, and some corporate borrowing, echoing the patterns seen before 2008.
- Systemic Risk
- The potential for problems in one part of the financial system to trigger a wider crisis. Subprime defaults, when widespread, can spread through interconnected banks and markets.
T
- Tariff
- A tax imposed by a government on imported goods and services. Tariffs are often used to protect domestic industries but can raise prices for consumers and trigger retaliation in trade disputes.
- Tax Year
- The 12-month period used for tax purposes in the UK, running from 6 April to 5 April the following year
- Trade War
- An economic conflict where countries impose tariffs or other restrictions on each other’s imports. Trade wars can disrupt supply chains, raise consumer costs, and slow global growth.
- Transfer of Wealth
- A shift in financial resources from one group to another, typically occurring during economic downturns when prepared investors buy undervalued assets while others are forced to sell.
U
- USP – Unique Selling Proposition
- What makes your product or service different and better than competitors.
V
- Value Ladder
- A model that offers increasing levels of value and price to guide customers through higher offers.
- VCA (Variable Cost Averaging)
- A disciplined investing approach that adjusts the amount invested each period to maintain a consistent growth target. You invest more when prices fall and less when they rise.
- Velocity Banking
- A debt-reduction strategy using cashflow and financial products to pay off loans faster and build wealth simultaneously.
W
- Wealth Plan
- A step-by-step roadmap for creating, growing, and protecting your wealth. A clear plan helps you stay consistent and reach long-term goals.
- Wealth Strategy
- A structured plan that outlines how to accumulate, protect, and grow wealth over time. It often includes diversified investments, income planning, and recession-resistant tactics.
Y
- Yield
- The return an investor receives on a government bond (gilt). Higher yields mean higher borrowing costs for the government.
Z
- Zero to Millionaire Membership
- A step-by-step wealth-building membership designed to help you create income, invest it monthly across multiple asset classes, and build lasting wealth. It includes training, tools, and real investment opportunities.
