StrategyFIRE glossary
Defined termRule of 25
Quick FIRE-number estimate: multiply annual expenses by 25 (the inverse of a 4% SWR). $50K/year × 25 = $1.25M target.
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Sinking Fund
Saving small amounts monthly for a large known future expense (car, vacation, new roof). Keeps your investment portfolio from getting raided.
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.
Bond Tent
Gradually increasing your bond allocation in the years leading up to retirement, then reducing it again after — a "tent" shape — to buffer against sequence risk.
Net Worth
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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