A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Financial IndependenceThe point where your savings and investments generate enough income to cover your living costs without needing a paycheck.
- Savings RateThe share of your income you set aside rather than spend, usually shown as a percentage of your take-home pay.
- Safe Withdrawal RateThe percentage of your savings you can spend each year with low risk of running out of money during retirement.
- Passive IncomeMoney you earn with little ongoing effort, such as from investments, rentals, or royalties, rather than from active work.
- Net WorthWhat you own minus what you owe — the clearest scorecard of your financial progress.
- Coast FIREHaving enough already invested that, without adding more, it will grow into a full retirement fund, so you only need to cover current expenses.
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Plain-English education — not personalized legal, tax, or investment advice.