financial independence
Monetary freedom achieved
Financial independence is having enough wealth or passive income to cover living expenses without needing to work.
The term appears frequently in personal finance discussions, often abbreviated FIRE (Financial Independence, Retire Early).
Someone who is financially independent can choose whether to work: She achieved financial independence at forty and quit her corporate job.
The threshold varies by lifestyle and location.
Money earned without labor
- investingCommitting capital for gain
- budgetingAllocating funds systematically
- frugalityEconomical resource management
- side hustleSecondary income venture
savings rate · wealth accumulation · asset allocation · diversification · compound interest · cash flow · money management · debt-free
Abundance of money
- prosperityGood fortune, success
- capitalWealth used for investment
- investmentsAssets bought for profit
- fortuneWealth or destiny
portfolio · dividends · assets · millionaire · net worth · generational wealth · inheritance · endowment
Independent decision-making capacity
- self-sufficiencyIndependence from outside aid
- self-relianceDepending on oneself alone
- liberationRelease from constraint
- agencyPower to act
choice · flexibility · self-determination · empowerment · self-directed · unconstrained · sovereignty · discretion
Reserve for unexpected expenses
- savingsAccumulated money kept
- insuranceContractual risk coverage
- stabilityResistance to displacement
- net worthAssets less debts
solvency · income protection · risk management · debt management · credit score · assets · liabilities · rainy day fund
Exiting career before standard age
- pensionRetiree's ongoing benefit
- 401(k)Tax-advantaged retirement savings account
- IRATax-advantaged retirement fund
- Roth IRATax-advantaged retirement account
nest egg · superannuation · annuity · Social Security · golden years · retirement age · Medicare · withdrawal rate
passive income
Money earned without labor
- investingCommitting capital for gain
- budgetingAllocating funds systematically
- frugalityEconomical resource management
side hustle · savings rate · wealth accumulation · asset allocation · diversification · compound interest · cash flow · money management · debt-free · expense tracking
affluence
Abundance of money
- prosperityGood fortune, success
- capitalWealth used for investment
- investmentsAssets bought for profit
fortune · portfolio · dividends · assets · millionaire · net worth · generational wealth · inheritance · endowment · estate
autonomy
Independent decision-making capacity
- self-sufficiencyIndependence from outside aid
- self-relianceDepending on oneself alone
- liberationRelease from constraint
agency · choice · flexibility · self-determination · empowerment · self-directed · unconstrained · sovereignty · discretion · free-will
emergency fund
Reserve for unexpected expenses
net worth · solvency · income protection · risk management · debt management · credit score · assets · liabilities · rainy day fund · liquidity
early retirement
Exiting career before standard age
- pensionRetiree's ongoing benefit
- 401(k)Tax-advantaged retirement savings account
- IRATax-advantaged retirement fund
Roth IRA · nest egg · superannuation · annuity · Social Security · golden years · retirement age · Medicare · withdrawal rate · retirement planning
- money managementsaving, savings, budgeting, budget planning, expense tracking
- adulthoodadulting, maturity, responsibilities, responsibility, milestones
- life goalscareer, get married, world peace, purpose, aim
- twentiestwenties, young adult, early adulthood, emerging adulthood, college grad
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- Money Beliefsfrugality, materialism, consumerism, thrift, scarcity mindset
financial independenceeconomic dependence
Requiring another's fiscal support
debt bondage · debt slavery · living paycheck to paycheck · wage slavery · indentured servitude
financial independencepoverty
Severe lack of resources
destitution · financial hardship · insolvency · penury · indigence
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