Happily...

In addition to new words entering the lexicon via processes such as borrowing, clipping, back-formation, functional shifts, imitation of sounds, etc., you may be interested to know about such word entry modes as blending and creative coinage.

A blend is a word made by combining other words or parts of words in such a way that they overlap (as motel from motor plus hotel) or one is infixed into the other (as chortle from snort plus chuckle — the -ort- of the first being surrounded by the ch-...-le of the second). The term blend is also sometimes used to describe words like brunch, from breakfast plus lunch, in which pieces of the word are joined but there is no actual overlap. The essential feature of a blend in either case is that there be no point at which you can break the word with everything to the left of the breaking being a morpheme (a separately meaningful, conventionally combinable element) and everything to the right being a morpheme, and with the meaning of the blend-word being a function of the meaning of these morphemes. Thus, birdcage and psychohistory are not blends, but are instead compounds.

Once in a while, a word is created spontaneously out of the creative play of sheer imagination. Words such as boondoggle and googol are examples of such creative coinages, but most such inventive brand-new words do not gain sufficiently widespread use to gain dictionary entry unless their coiner is well known enough so his or her writings are read, quoted, and imitated. British author Lewis Carroll was renowned for coinages such as jabberwocky, galumph, and runcible, but most such new words are destined to pass in and out of existence with very little notice from most users of English.

So, you see, language is dynamic and forever changing, which is why you don't sound like a member of the educated class in Tudor England.

http://www.merriam-webster.com/help/faq/etymology.htm