jargon buster

The hosts apologize for their inconsistent podcast schedule and announce their plans to improve by lining up guests and setting up a camera for TikTok content. They discuss their topic for the day: jargon in finance and health industries. They explain the terms revenue, gross profit, and operational profit in finance, and plyometrics in health. They also briefly explain dividends in finance and mention their plans to have a guest discuss starting businesses. Hello listeners and welcome back to Seek Professional Help with your hosts, Scott and Dave. That was the first time, I didn't know that was coming out. It felt right. It was good wasn't it? I guess a little apology that we've been pretty inconsistent with the podcasts so far this year. I'm not sure they care, they're animals. No but we are back and we're back with a vengeance I think because we've got people lined up and some good guests coming. And hopefully for all of you visual learners out there, we're going to finally get our camera set up better. We're going to enter the brave world of TikTok and Seek Professional Help is going to be trending everywhere. Yeah, we're going content creation crazy. CCC is what we coined it. What are we doing today? So today we thought it would be good to do a quick episode on jargon in both the industries because there's just so much of it and I think that you hear it in day to day life and you kind of think you know what it is but do you really? So yeah, that's the route we're going to go down and hopefully it resonates with you. But if you do have any other questions, follow up, please do put it in the show notes. No, it's not show notes. Just message us. DM us. We're big grammars now remember. DM us. If you have other jargons that you want to know. You can put it in the episode questionnaire bit otherwise. That sounds technical. Thank you. So yeah, we might call it the jargon busting episode. We might call it what is this? It's my favorite one. Sounds good. Sounds good immediately. So we're going to go quick fire, finance, health, finance, health, finance, health, Bosch, finished. That was six, right? Yes. Perfect. Three each. Let's get at it. That's you go first. As in asking you one or? Yeah. Okay, sure. Let me get my notes section back up. What is this? What is this? Number one, there are three terms I often hear regarding profit. I wonder what you're going to say to me. And I think I know what they mean, but then I'm not sure what they mean. So revenue versus gross profit versus operational profit. Is that a word? Operational profit? Is that a word? You just turned me on there. Yeah. Okay. So these are three terms. You just turned me on there. Yeah. Okay. So these are three distinct words. I know that. I'd say more than three words. That you will find on an income statement, okay? So every company will publish these three categories on their income statement. And people can get very confused by them. So revenue is basically your sales. So say I sold you my service. What is your service? You don't want to know. For £100. That £100 goes down as a sale. It doesn't take into account the cost of me selling that to you. So that's revenue. That's just the actual sale. Gross profit takes into account the cost of sales. So I've sold you £100 worth of my secret service, but it's cost me £50 to produce said service. So my gross profit is now £50. Then we've got all our overheads, which aren't related to the actual cost of sales. So overheads will be advertising, so getting you to actually buy the thing. It will be any rent that you might be paying, phone bills. It could be anything else that's not specifically related to that sale. So all your overheads will be in there. That is when you get your operational profit. And sometimes also referred to earnings before interest and tax, but we won't go into that. So can I fling it back to you to confirm my understanding in a way that is relevant to my life? Shoot. So I sell a physio appointment for X amount of money. That is my revenue. How much is X? If you go on my website, you'll find out. Book in, I won't give you a discount. It's £120. So that's my revenue, correct? Correct. You said, again, this might be wrong, but in my case, I often, if I've got an hour appointment, I have to buy the room for that hour. So I would minus the cost of the room at that time to then make my gross profit for that session. And then if I looked at all the sessions across a week and then minused off the costs of my website, my advertising, that would give me my operational costs of operational profit. Yeah. Essentially, it's basically anything else that's not directly involved in the actual selling of the thing. Great. I understand. Perfect. Next. All right. So this is one that has come up quite a few times and I usually just nod my head and assume, I think people assume that I know what I'm on about, but I don't. So in the gym, I hear people say the word plymetrics. I could guess what it is. I'd love you to. I mean, the first thing that comes to mind is plywood because of the ply. Okay. But I don't think it's got anything to do with wood. It's got nothing to do with plywood. Any other guesses? Get educated guesses. Metrics is another word in there that means measuring. Sure. So it could be wood. Measuring plywood. Measuring wood. Is that your final answer? Measuring wood? Final answer, Jeremy. You have lost the money. You actually couldn't be any further off, really, if you tried. So I didn't think that was going to be your answer. So plymetrics is pretty poorly understood, I think. Even when people think they know what it is, I often don't think they truly know what it is because a lot of people's answer to what they think plymetrics is, for me, is jumping onto a box. They think jumping is plymetrics, which it kind of is, but it's not the specific definition. Would that be a wooden box? You do get wooden plymetric boxes. I was 50% there. You were 50% there. Plymetrics is the ability for the body to produce force quickly. So it's repeatedly producing high force in a short space of time. So plymetric training, and that's why I said people often think that jumping is a plymetric exercise, which it kind of is, but you need to add a little bit of context to that. So jumping alone onto a box is about producing force, but there's no real need to produce the force quickly in that activity, necessarily. The true definition, and there's actually a Russian definition and an American definition in the literature, but I want the Russian one. Yeah, well, we will go with the Russians because they invented this. It's the ability for the body to absorb force and then give out force. So actually, imagine you had two boxes facing each other, and you were standing on one, and you were to land on the floor and then jump up onto the next box. That would be a plyometric exercise, or a load of hurdles and you're jumping over them, because it's not just about can you jump over said object. It's can you jump, land, and not spend too long on the floor, and then jump again. So you're absorbing force and then producing force. So it's called a quick stretch shortening cycle. So the muscles stretch under load, but then absorb the load and can go again. So it's a double jump. A double jump would be a nice way of... But again, we can have plyometric exercises in the arms and the upper limb as well, which, again, would be absorbing some kind of force. You're doing a motion that I'm not going to repeat, but absorbing some kind of force, like a volleyball player having to slow the ball down as it comes overhead, but then being able to return that force back out. Okay, movement. You oversimplified that. That's what I'm trying to do. Movement could be walking and really slow walking. Yeah, point taken. Does that make sense? No, it doesn't. Basically, in real layman's summary, explosive movements. Yes. But we've got a clarifier at the beginning of that. Can we go to the next one, please? Next question. It's mine, isn't it? Okay. Scott, what is a dividend? I don't fucking know. No, a dividend is when the company, or a company, will give out its profit, so its earnings, after all's said and done. So it's paid its taxes. It's kind of whatever's left over that's made its profit. It's paid for the cost of sales. It's paid for all of those overheads, as we just spoke about, and then it's paid the income taxes and all that kind of stuff. So it's any money that's left over, which is retained earnings in a company, that retained earnings can then be given out as a cash dividend to shareholders. So in a public company like Apple, you'll usually see – and this goes for any company – you'll usually see, along with the price of their share, also how much dividends they pay. And that dividend will be a percentage, and it will be – so it's basically how much money over the year, so you'll get maybe a 1% dividend. And that means whatever you've been invested, so say you've invested £100, you'll get 1%, so £1 back each year as a dividend. It's also, moving away from more public companies, for maybe a limited company, so like a small business, obviously as the director and owner of that small business, you can take dividends because it's a tax-efficient way to take money out of your business and essentially pay yourself a salary, other than just paying income tax. Because any time you take money out of business, if you take it as a salary, obviously you pay income tax on that. But if you take it as a dividend, you can take – it's kind of like a salary, but instead of paying income tax, which is obviously 20%, 40%, 45%, it'll be taxed at a different rate, and you'll also get a tax-free dividend allowance as well, depending on your income rate. So you could take a certain amount – I can't actually remember what the dividend tax rate is right now. It's something like 32% above a certain amount. I don't want guesses on this, not on this podcast. You have to Google that one. But yeah, it is lower. It's more efficient to do it that way. But obviously, don't take that as advice. It's all up to your personal situation. You have to work it out. If it's more tax-efficient, you'd do that. And actually, on that note, I think we want very soon to get a guest on to talk all about starting businesses, small companies, sole traders moving into limited companies. Because it's certainly something on my mind at the moment. Yeah, we can get a professional, maybe accountant. They'd know the in-depth analysis of that stuff. Does that make sense, what a dividend is? It does. Good. Thank you. No worries, Dave. We are flying through these today. We are. We are. All right, number two for you. Again. Four in total. Four in total. Quick maths. I want to talk about – and I think I've said it two or three times already, but it's just not sinking in. And it's more nutritional-based, which I know that you hate because you're fat. Wow. But is the difference between macros and micros – I just can't get my head around it, to be honest with you. And I don't know why they're important. And do I have to have both? Can I have one? Yeah, fine. Fine. What do the words macro and micro mean? Big and small. Big and small. Big and small. So, nutritionally, I would just say that your macronutrients are the – it's being a lot more broad with the nutrition. So, the macros are basically three different things. Protein, fats, and carbohydrate. That's a macronutrient. Okay? So, they're all of your macronutrients. That's it. Okay. So, you have – it's basically categorization of what that nutrient is into proteins, fats, or carbohydrates. And what ratio of said food is protein, what ratio of said food is carbohydrate, and what ratio of that food is fat. I think that's what you usually see on the label. And that's – yeah, a lot of that stuff's on the label. And then within that, there are subsets, right, of your different types of fats, and your different types of carbohydrates. A carbohydrate being essentially sugar, like is that more glucose or fructose or different types of sugar. But essentially, we all have a – and obviously, to be really specific about this, you need to get a proper nutritionist to go, this is what your current body weight is, these are what your body fat percentage are, this would be your ideal ratio of macronutrients to lose weight, for example. But if you're coming from a purely maybe aesthetic point of view, and probably the best place to start with diet is looking at your macronutrients and thinking how many grams of carbohydrate do I need a day, how many grams of protein do I need a day, and how many grams of fat do I need a day. And then how many calories, which is just a unit of energy, do I need per day, right? Which, you know, there are rough guidelines of like 2,000 for women and 2,500 for men, which is really vague, and you can get people to calculate a much better number for you and then work out how many calories you'd have to drop. But then as long as you hit that calorie requirement and those three macronutrients roughly with the right ratios that you want, that's going to get you, let's say, if you want to gain weight or lose weight and hit your goals. Taking the macros purely into account, though, isn't really going to give you anything about health and the quality of your food, right? So I can get, you know, I can get a protein shake, which is going to hit my protein, get my carbohydrates and crisps and bread, and I can get my fats from really naff places, okay? I've still hit my macro kind of guidelines, and if I hit my calorie guidelines, I'm probably going to start to make the transition to what body type I want, okay? It doesn't mean I'm going to feel healthy. Think of the micronutrients, that's your vitamins and minerals. So like, how much zinc does this contain? How much vitamin C does this contain? Which will probably more guide the way you feel, the quality of your food, the additives, the preservatives and all of those things. So I think it's literally as simple as the macros are looking at it on a big level, on like a really broad level, and the micros are more to do with the quality of actually what's in the ingredients of that food, like, you know. How many micros are there, do you know? Are there a lot? Pass, a lot. Okay, nice. Yeah, there's three building blocks, which are your macros, but that gives you very little information. The micro then breaks that down further. Again, I say this with a lot of stuff in the health and fitness industry, that we worry too much about the small things without even getting the big things right. And I would always, if somebody, I know you haven't even asked me about this, but if somebody were like, what's the first thing I can do to start to lose weight? I would just say, just look at the simple, you know, try to eat good food, like fresh food, but just look at your macros and your calories. And that will be a starting place. Don't necessarily get obsessed by the small bits. Once you then get more in tune with that, that's when the micros become more important. It's like that visualisation where you've got like a bowl, or like a fish bowl, and you put like, you can even put sand in first, and then your golf balls, or your bigger balls. I like, I know what you mean. You can't fit too many of the big balls in because the sand's in already. You know, you put your big balls in first. Put your big balls in first, then the marbles, and then the sand. And then the sand goes in last, which is the smallest, and you get everything in. That's the way I look at it. I like it. I like what you've done there. Thank you. Good. Okay. We're on an absolute whirlwind of a tour here. Whistle Stop Tour. I'm just thinking, literally. By the way, these are all pretty much just random. We've not pre-warned each other really about any of these, or thought about them. I don't really, I have no idea what this financial term means, and I just hear it. Capital gains allowance. Is that something? Have I made that up? No, this is a good one actually, Dave. Capital gains is another type of tax, and you said allowance, because whenever there are taxes, there are also allowances. So you'll have a tax-free amount of capital gains you can take, and then anything over that allowance will be taxed at a certain rate. The way you can incur a capital gain is any asset that you own that goes up in value, asset or investment, that goes up in value. Any asset? Not any, actually. Pokemon cards? No, not everything. That's a very good point. Not every asset. Certain types of assets. You'll have to look up whether if you own one of these assets, but using investment as an example, so if you own a share of a company, or have an investment portfolio, and it goes up in value, and you make X percentage, you sell it. As soon as you crystallise that gain, so you sell it and you lock that gain in, if it's over the allowance that you get every year, and the allowance every year, if you don't use it... What is the allowance? The allowance is, if I remember, it's around... Sorry to test you right here, right now. It's around £6,000, I think. It's recently come down, or it could be £20,000, I can't remember. I'll have to check on that one. But if you go over your allowance, and it every year refreshes as well, you'll be liable to pay tax on that. Sure. And I think a lot of people, this is just my hypothesis, especially with stuff like crypto recently, I think a lot of people don't realise that if they've made a load of money on their crypto coins... They should be taxed on it. They haven't declared it on their tax return, and are unaware that they actually owe money, basically. So if you sell a house, there could be capital gains on that, depending on the house situation. I think it's primarily... That's actually really interesting. So hypothetical for me, if I have a... I think you've explained this. If I have a portfolio, and let's say I had made £10,000 profit on it, but it was all still in the portfolio, and I hadn't withdrawn any of the money, I wouldn't owe anything to anyone at this point. If you haven't sold it. Yeah. If you sell it, but still keep the cash in the portfolio, you've still sold it, but you haven't sold it. The share's still there, fine. And then if I sold all £10,000 in one go, and made that as profit, I would owe tax on some of that. If I sold £6,000 of it, and then waited with the other full profit still unsold, and then sold... I know it doesn't work quite like this, but then sold that £4,000 next year, I wouldn't owe anything. Exactly, yeah. So it's a tax strategy that you can do, that you have to be smart about, if you've got big gains, you want to make sure you can stagger them, so you don't incur a big bill in that particular year. And another thing, you can also take a loss as well, which can be carried over for, I think it's three years. So if one year you had a really bad year, and you lost £10,000, you can crystallise that loss, then that loss that you've taken, so you've taken a minus £10,000, you can pull that over to the next year, and all of a sudden you can offset that against, say you had then a £10,000 gain in the next year, you can offset it. Sure. And it's to do with the profit. So I'm just coming up with figurative numbers here. But let's say this year I put £20,000 into a portfolio, and then four years later it was up by £10,000, and I withdrew that year, let's say 2028, I waited four years, and I've made that £10,000 profit, would that be shared across the four years, or that's literally just the year you... It's in the year you crystallise it. Got it. Yeah. Got it. Okay. And how do I prove, I guess this is more complicated tax, but how would the government know that that's not £30,000 profit, if that was all coming back into my account, versus it being only £10,000, because obviously I bought it four years ago or whatever. Yeah, so all of that stuff is documented, and depending on how you're buying and selling, whatever it might be, whether it's for a broker, or if it's a different type of asset, it'll be documented somewhere, but you do have to just declare it, I guess. Yes. And if you lie... They will get you. They will find you, and they will get you. You wouldn't steal a bike. Just like the TV life. You wouldn't steal a... What was it? DVD. I can't remember. Well, Scott, that's actually been a very interesting answer. Thank you. No, thank you. Okay, do you have anything left for me? Yeah, so last question, and it's going to sound a bit weird, this one, because I think everyone knows what it is, but when I thought about it, I actually couldn't really explain what it is, if that makes sense, and so the term, I don't know, is arthritis. Obviously, when you hear the term arthritis, it's like... What do you think of when you hear arthritis? I think it's when the cartilage that holds your joints together basically goes, and then your bones grind. That's my thoughts. Is that right? Do you know what? There's complexity to this, so that's actually not a bad explanation of, I will clarify it slightly, but of osteoarthritis, because you have two types of arthritis. Osteoarthritis, which is the really common one, which is kind of what you've just explained. It's the, I don't like this term. Surgeons love this term for some reason, but the wear and tear of the joint. Arthritis affects pain and inflammation at a joint, so two bones as they articulate on each other as a joint. Arthritis is the broad term for inflammation at a joint. Osteoarthritis, as you kind of explained, is as cartilage degenerates and breaks down, there's then potentially inflammation and friction and irritation between that, the surfaces of the two bones that form the joint, so kind of what you've understood there. I don't quite like the imagery. It seems a bit dramatic of bones rubbing against each other, but inflammation and irritation due to cartilage breakdown. Cartilage breakdown, and arthritis becomes a really scary word to people. Patients come to me, oh, someone's told me I've got arthritis. They think of it as this really scary thing, but I try and describe it as, like grey hairs and wrinkles, as we age, the cartilage on our bone does just degenerate, and it's part of life, and it pretty much happens to everyone. Whether that causes pain or not is a different thing. So that's osteoarthritis. Just a follow-up question on that really quickly. It might be an old wives' tale, but when you click your bones, like crack your knuckles and stuff, I think I was always told that don't do that, you're going to get arthritis in your knuckles. Is that real or not? Uh-uh, not real. Not a thing. There's a few reasons for why bones and why joints can click. Generally, it's just fluid popping, and it's just fluid moving, and then the fluid will build back up and form a little air bubble, like a carbonated drink, and then it'll pop. That's that. There's actually studies to say it possibly helps lubrication of joints. It's certainly not a bad thing, right? So, yeah, joints clicking, non-painful clicking, is something to completely not worry about. Good question, though, because it's one... Again, these are questions I get a lot. So the other type of arthritis, and I won't go into... This is more complex and less common, is rheumatoid arthritis. Again, still affects the joint and still is painful at the joint. It, however, is more of an autoimmune condition. So autoimmune is kind of when the body attacks itself, and there's inflammation and irritation at the joint. So there'll be high markers of inflammation in the bloodstream and stuff. There's a load of different rheumatoid arthritis conditions. I'm not going to go into them all. But it's more of a multiple, rather than... Normally osteoarthritis, okay, my knees, I'm really struggling with that in my knee, for example, is probably the most common place. Rheumatoid arthritis would normally present as, like, extreme stiffness in all of your fingers and all of your toes in the morning or something, and it's more genetic. It runs a lot in families, and there's actually medication and stuff to try and relieve the symptoms of rheumatoid arthritis. But yeah, does that help? Yeah, no, that's very, very useful. Well explained, David. Well done. Thank you. Right. That concludes our... What is this? What is this? Enjoy that one. Yeah, I think it was good. It was a quick fire, kind of tested the knowledge. Bit rusty on some stuff, I think. It's been a while. Might make us go back and revise. If there are people out there that think they can explain it better, come on and do it. Come on. Come on. Come on, I dare you. Again, sometimes we do prepare our topics a little bit more, but actually it's nice to be tested and just spitball, rather than spending hours preparing. I enjoy these little short episodes. We're going to keep with the guest ones. Some people might hate this idea of it being a bit more chatty and not super polished. If that's the case, go and check out the less polished, less smooth ones. Go check out some of the other ones. Yeah, well said, Dave. Now, as always, shall we sign out? Sign out. So everything we've said today is our own opinion and should not be taken as advice. If you do have questions, feel free to send them in, but always do your own research and seek professional help.