StrategyFIRE glossary
Defined termNet Worth
NW
The sum of all your assets minus all your liabilities. The scoreboard for FIRE progress — track it monthly but judge the trendline, not any single month.
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Emergency Fund
3–6 months of expenses in cash, separate from invested assets. The foundation before aggressive investing.
Glide Path
How your asset allocation changes over time — typically shifting from stock-heavy to more bonds as you approach and enter retirement.
Passive Income
Income that continues without active work: dividends, interest, rents, royalties. Less common in early FIRE (most rely on portfolio drawdowns), but a popular parallel path.
Geographic Arbitrage
Earning income in a high-cost-of-living area and spending it in a low-cost one. A common lever to accelerate or enable FIRE.
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