So – young lads Cameron, Clegg and Osbourne have had their work examined by the big boys (ie: the International Monetary Fund has graded their efforts and patted them on the back). But what the International Monetary Fund (IMF) report entail?

The good news first – the IMF said that they were pleased with the cuts and efforts made by the coalition government to reduce the deficit. They said that the plan was essential to the recovery of the UK economy, and that it will guarantee that they are able to continue borrowing money in the future. They said the improvement since 2010 was substantial, and that had things continued going the way they had been with a fiscal consolidation program, things would have been very bad indeed.

But the IMF was quick to point out that the economy is still facing extreme pressure from the Eurozone crisis, which has a serious effect on the UK. Growth is being prevented and unemployment remains high, and economic recovery has not yet taken hold, meaning that any improvement will be small and slow at best. Unemployment remains at more than 8%, with a huge number of young people unable to get a job.

So what did the IMF suggest to improve the situation? This was more than just a ‘Well done, shame about the economy' speech, as calls were made on the Bank of England to introduce quantitative easing and cutting Value Added Tax for businesses, to pass on the money to the consumer. These are measures that the Labour opposition has been advocating. This, the IMF believes, would encourage growth and thus improve the job situation to some extent. The IMF even suggested delaying further cuts until the economy picks up, prioritising growth over austerity.

The concept of a credit rating is simple enough. Receiving your own grade dependent upon how likely you are to pay back debt is a concept rather like receiving a grade at secondary school or university. You've been given a score – now you have to improve it. But how on Earth do you apply the concept to an entire country? And who applies these credit scores and who are they to judge?

The credit rating concept is almost identical to that applied to individuals, and has a similar effect. If countries have been downgraded recently, companies based in that particular country are likely to suffer, as downgrades are often a sign that a country is about to default on its national debts. It results in banking customers withdrawing their cash and thus less money being available to lend to businesses, and so when a downgrade happens, it's regarded as an extremely bad thing. Hence the shock in the United States in 2011 when their credit rating was downgraded from the maximum AAA to AA+. The reason given was that the United States had an enormous amount of debt – and therefore an enormous deficit – and that plans to reduce that deficit did not go far enough. The result had China – which is the largest holder of US debt – raising the cost of US borrowing.

So who is actually saying all of these things? Who is in a position to cause havoc with a country's financial system? More often than not, it is Standard & Poor's, a US-based financial services company which provides credit ratings, publishes stock market indices and offers advice to those in debt. But even Standard & Poor's have not been with controversy, owing to large losses in 2007, made by companies given a AAA rating by S&P.

People who go into investment are often highly-trained professionals, with degrees based around maximising their returns. But sometimes, they're not. Look at Richard Branson. But even if you don't get a degree, it's still worth learning the jargon necessary to get yourself through. Here are some common investment terms below, with moneyinvestment.com's jargon-busting guide.

Assets – the securities, cash, shares and earnings which make up a company.

Baby Boomers – often quoted expression, this term refers to the population bubble with people born between 1946 and 1964.

Bear Market – The term given to a long period of declining share prices. Worth looking out for, as the bottom of these promises high returns for brave investors.

Capital Gain/Loss – A profit or loss on the sale of security or other asset.

Conservative – A cautious approach to investing, taking only necessary risks to seek a reasonable return.

Custodian – A term given to a bank or trust which holds assets to a company, and handles the company's payments and receipts for large transactions.

Dow (The) – The most commonly used indicator of stock market performance. Also known as Dow Jones Industrial Average, but most commonly called The Dow.

Hedge – a strategy used to offset investment risk. This tactic involves the purchase of an offsetting position, thus guarding against the risk of market decline.

NASDAQ – A nationwide electronic system designed to track up-to-the-minute price quotations and trading on over 5,000 over-the-counter shares.

Niche – A small market in which a company may specialise.

Par Value – The face value of a security as determined by the issuers. Think par as in ‘golf' if it helps.

Realise – To sell an investment.

Stockbroker – Person who buys and sells securities and investments for clients, in return for commission or a fixed fee.

Trust – A legal arrangement under which an individual agrees to give financial control to someone else

Since the banking crisis of 2007, few things have come under more scrutiny than executive pay. It's enough to rile the public – why on Earth do chief executives, chairmen and CEOs continue to receive enormous paycheques while the rest of the company has to tighten its belt? Wouldn't some of that money be better spent making sure that the business doesn't go bust?

It's been happening more and more lately. The most recent candidate was Andrew Moss, the group chief executive of the insurance company Aviva. Moss was forced out of the company by shareholders who were unimpressed with the salary that he was receiving, especially as the company's share price had continued to fall. It's an important message to chief executives everywhere – make sure the business is healthy, or you'll be given the choice between a pay cut and the door.

Aviva may be the most recent company to suffer a lack of confidence in leadership, but it is by no means the only one. Barclays bank was also hit by a significant revolt by shareholders protesting against the executive pay package. 26.9% of those who voted sad ‘no' to the large salary offered to executives, and a further 21% also voted against the re-election of remuneration committee chairman Alison Carnwath. It's been named by journalists as one of the biggest shareholder rebellions of recent history. Also in 2012, the CEO of Halifax Bank of Scotland came under fire when he looked set to take home a bonus of £1million on top of a salary already worth several million. Public outcry prevented him from taking it.

The poor financial climate has led to many companies filing for bankruptcy. The biggest, including Game, XL Airways, Kodak and, of course, Woolworths, have left not only empty shops in our high streets and airports but also nostalgic places in our memories. It's always a wrench to hear about a company going bankrupt – thinking of the jobs that have to be shed and how it could be you next. But it's a different matter when it's a company which seemed to be flying high just last year. It's a reminder of how quickly you could become a victim of the recession. With that in mind, who could be next?

The travel industry has been hit hard by the recession, with experts estimating that travel agent Thomas Cook and airline Air France are looking likely candidates to go bankrupt. The industry has had difficulty due to people having less money to spend on a holiday, and so they are often opting to remain in the country for ‘staycations' or head to London for a day out a few times a year instead. Air France has also had to deal with a number of staff strikes.

Hot competition from UPS and FedEx has led the United States Postal Service into financial distress. The company was founded in 1775 and the crisis now has many people questioning how to save it. Suggestions have included cutting various aspects of the business, including pay, pensions and Saturday delivery, but will it be enough?

In the old days, you had chain letters. Nowadays, you have e-mail scams. Who hasn't gotten some spam e-mail that offered to help you make obscene amounts of money by just making a “little” investment of a few thousand pounds into this one little company? Or maybe you've gotten the more infamous “Nigerian Prince” scam, where there is a claim to have found a stash of buried treasure and of the willingness to share it, if only you will provide the money to fund the expedition necessary to retrieve it. Some of the scams are not so black-and-white, however. Therefore, it is important to know what to watch out for.

One way to avoid being scammed is to pay attention. What does this mean? Well, if the “investor” asks you to visit x website in order to see the legitimacy of the “investment”, pay close attention to the website. If it is poorly designed or has many typing errors, then you should be exceedingly leery of actually signing up for whatever is being offered. Also, pay attention to the wording of the letters. Many of these scammers try to attract people's attention by capitalizing certain words or phrases. So, if you get an e-mail of this type with words like “HUGE RETURN!” or “THE BEST WAY TO MAKE MONEY!” in bold capitals, chances are you're being scammed.

Before you put your hard-earned money into any investment, you should do a bit of homework so that you are sure that you are making a smart choice. There are several basic steps to learn when it comes to investing in bonds, stocks and mutual funds. Having a plan is essential as it helps you to ‘set out your store’, worry less and provides you with ideas and ways of investing your money properly.

The first step is setting your financial goals, knowing how to reach them and how much money you are able to invest. With the current economic downturn you will need to be frugal and careful in deciding where to invest your money. Not everyone can be economical so you need to know what type of investor you are and the importance of good returns on your investments.

There are two types of investors; bears and bulls. A bull is a high-risk investor, while a bear is more cautious in their investments. You should be comfortable with the fact that you may lose money at times, but this can help your decision when it comes to investing your savings. You should have an assortment of different investments, but always make sure you understand what you want to buy and stick to it.

Warren Buffet terms this as “staying within your circle of confidence.” Having a good asset mix allows you to experience growth and create a balance in your loses since some investments grow more rapidly than others. If you are not comfortable with choosing your own asset mix, get expert assistance. Although having a diverse portfolio reduces risk, by spreading your money, it limits your chances of outperforming the market via a wide margin.

After certifying your asset mix, you are now ready to choose specific investments from each category. The key to investing is information and knowledge; so before you make your decision you will need to do some research. Financial news gives you information on market trends so that you know the ideal time to make an investment. You will also need to know how a company performed in the past and what the plans are for any future investments and projects.

In the investment world, it is very hard to push above the status quo. With the great amount of competition that exists, making a living out of the business can sometimes be a seemingly impossible struggle. For this reason, anyone who has risen above the pack and distinguished themselves as a master in their trade is usually looked upon with awe, and sometimes a sort of adulation. People look to them as archetypes, as patterns to emulate in order to achieve success. A few of these investment giants will be discussed below.

Let us first take a look at Jack Bogle. Born in New Jersey in 1929, Bogle was one of the most influential investors of the mid-20th century. After graduating magna cum laude from Princeton University, he set out to create a name for himself in the investment world. This goal he certainly achieved. Along with his monumentally successful investment management company, The Vanguard Group, Bogle left his mark on the investment world through his new and stunningly effective business policy. He advocated several methods, including:

• The minimisation of all expenses related to the investment process;

• Planning an economic strategy based on long term goals;

• Emphasising a rational course of action over an emotional one when deciding on investments.

One of the quickest and most fashionable ways to make money these days is in the investment world. The opportunities afforded to any would-be entrepreneur are extensive, and the market is in favour of the buyer. The trouble, as with so many other profitable pursuits and careers, lies in a lack of training. In order to do well in the investment world, you have to know what to do. Otherwise, your venture into potential wealth could end in financial disaster. So, how can you find the training necessary to make you into a skilled and acute investor?

If you're young – about university age in fact – one of the most logical routes to investment proficiency is to study an economics-related course. Though there may not be any college courses related directly to investments in the university at which you are studying, there are several peripheral courses you can take that will end up being of some use to you. These can include economics, business management and statistics courses. Of course, if there is a financial investment course that you can take, all the better. However, don't limit yourself. Knowing a bit about many subjects related to your area of interest is a very practical thing. As Robert Heinlein, a US writer, once said, specialisation is for insects.