Renaissance for LEADERS

Peak Performance Resources for Leaders by Leaders

glossary (Page 1 of 3)

Facsimile

1. An exact copy of something, not the thing itself. 2. One theory of the mind states that all physical perceptions, effort, emotion, and thought which a person experiences are recorded continuously, and these recordings can be referred to as “facsimiles.”

Fair Value

The price agreed to acquire a product, service or asset between a knowledgeable and willing buyer and a knowledgeable and willing seller assuming that each party is operating in their own self-interest and the transaction is conducted at arm’s length.

False Conclusion

In the process of everyday life, we make decisions after evaluating data from various sources, knowledge, past experiences, other peoples’ opinions, etc. If any of the premises or data inputs is wrong, it may lead us to a conclusion that is not accurate or false. In order to process large amounts of data in the shortest period of time, our brains use previous assumptions to evaluate and make a decision. If one or several of the past assumptions was or has become false or inaccurate, it will lead to successive inaccurate conclusions. Holistic education is the most effective way to develop emotional intelligence and critical thinking. For most adults, unlearning inaccurate conclusions, false assumptions and replacing these with newer, more effective models of the world, data and critical thinking skills provides a foundation for upward social and financial mobility.

Fear

1. A very unpleasant feeling of alarm or disquiet caused by the expectation of danger, pain, disaster etc. 2. Terror; dread; apprehension. 3. Anxiety and agitation felt at the real or perceived presence of danger. 4. The feeling of fear covers a wide spectrum of emotion from mild worry and anxiety on one end to terror and freezing, unable to move on the other.

Financial

Relating to or involving money or finance.

Financial Freedom

1. A state in which somebody is able to act and live as he or she chooses, without being subject to any undue financial restraints or restrictions. 2. Release or rescue from being financially bound, or from being confined, enslaved, captured, or imprisoned by the need of money. 3. A person’s right to rule their financial affairs, without interference from or domination by another person or power. 4. The state of being unaffected by, or not subject to, something unpleasant or unwanted due to the lack of finances. 5. The ability to exercise financial free will and make choices independently of any external determining force.

Financial Literacy

The knowledge of what money is, how it works, financial terminology, all aspects of financial life, and the competence to perform financial management including; decision making, planning, saving, spending, budgeting, cash flow management, lifestyle choices, investing and retirement planning.

Financial Mobility

The ability of an individual, family or group to improve their economic status, usually measured in income. Financial (also known as Economic Mobility) often leads to social mobility. Lack of Financial Literacy leads to downward mobility and declining social status.

Financial Plan

A working document that includes a vision statement, long and short term financial goals, current income and expense statements, balance sheet, cash flow forecast, asset allocation plans, return on investment metrics, tax liabilities and management, life, income and medical insurance policies, financial records archive, future estate and retirement plans, opportunity cost analysis, measurement metrics and milestones, specific action plans to achieve the stated goals, as well as contingency arrangements, alternative courses of action and critical path analysis.

Financialization

The growing scale, profitability, and level of importance of the finance sector relative to the rest of the economy. In the United States, employment and total sales of the finance industry grew from 10% of GDP in 1970 to 20% by 2010. The emphasis has shifted from making things to making money from money. The effects of this change are felt by everyone in the following ways: 1. Increased level of importance of money and finance in our everyday lives. 2. Increased complexity and level of sophistication required to understand and manage finance. 3. Increased income inequality due to the widening gap become making money from labor, making and selling things, to highly leveraged financial products that make money with money. 4. Increasing debt and the risks associated with the asset and debt bubbles, which when they collapse, cause massive financial destruction to everyone.

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