StrategyFIRE glossary
Defined termSavings Rate
(Income − Expenses) ÷ Income. The single most important variable for years-to-FIRE. A 50% savings rate reaches FIRE in ~17 years; a 20% rate takes ~37.
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"One More Year" Syndrome
The tendency to delay retirement even after hitting your number, chasing just one more year of salary. A real psychological hurdle — often rooted in identity, not math.
Drawdown Phase
The portion of retirement where you're pulling from your portfolio instead of contributing. Requires a different mental model than accumulation — tax efficiency and sequence risk dominate.
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.
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.
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