401(k) Match
The annual dollar value of employer matching contributions to a 401(k) plan.
Coast FIRE
The portfolio balance today that will grow to your FIRE number by retirement without any further contributions.
Compound Interest
Earning interest on both principal and previously earned interest.
Credit Utilization
Total credit card balances as a percentage of total credit limits — the second-largest FICO score factor.
Emergency Fund
Liquid savings equal to 3–6 months of living expenses held to cover unexpected events.
FIRE Number
The total portfolio size needed to retire early and live off investment returns indefinitely.
Net Worth
Total assets minus total liabilities — the most fundamental measure of personal financial health.
Rent vs Buy
The number of years until buying a home produces greater net wealth than renting and investing the difference.
Rule of 72
A shortcut to estimate how many years it takes to double an investment at a given annual return.
Safe Withdrawal Rate
The annual percentage of a retirement portfolio you can withdraw without depleting it over 30 years.
Savings Rate
Monthly savings as a percentage of take-home pay — the single most powerful driver of wealth accumulation.
Trad vs Roth IRA
Comparison of after-tax retirement balances between a Traditional (pre-tax) and Roth (after-tax) IRA.