Early retirement buzzwords and acronyms you must know
Get well-versed in the meanings behind early retirement buzzwords and financial independence acronyms.
Spend enough time hanging around us personal finance geeks and you're bound to be exposed to a wide variety of terms and acronyms that many of us simply take for granted. A lot of them are well-known, but some might not be as understood as you might think.
Early retirement buzzwords and acronyms
Feeling cranky, stressed, and unmotivated in your job. Perhaps you’re even considering a new job or a career change. Can lead to feeling ready to leave it all behind and saying “screw you” to the corporate machine.
DINK, DINKWAD, SINK, etc
So many acronyms, so little time. There are a slew of acronyms that describe a person or family's current state of financial affairs.
J. Money from the Budgets Are Sexy blog gave us 40 of 'em. Here's a small subset:
- DINKs - “Dual Income No Kids”
- RINKs - “Retired Income No Kids”
- SINK - “Single Income No Kids”
- DINKY - “Dual Income No Kids Yet”
- DINKER - “Dual Income No Kids Early Retirement”
- DINKWAD - “Double Income No Kids With A Dog”
- DINKYANDE - “Dual Income No Kids Yet And No Dog Either”
- SIK - “Single Income Kids”
- SILK - “Single Income Lots of Kids”
- DIK (hah!) - “Dual Income Kids”
- DEWK - “Dually Employed With Kids”
- SITCOM - “Single Income Two Children and Oppressive Mortgage”
- MUPPIE - “Middle-aged Upcoming Prosperous Professional”
- KIPPERS - “Kids In Parents’ Pockets Eroding Retirement Savings”
- SINBAD - “Single Income No Boyfriend And Desperate”
- GLAM - “Greying Leisured Affluent Married”
- PODWOG - “Parents of Dinks WithOut Grandchildren”
- WOOF - “Well Off Older Folk”
A domestic engineer is anyone who runs a household. From scheduling to budget management to meal prep and minor medical care, domestic engineering can be a full-time job. Of course, you don’t need to be a full-time domestic engineer to manage your family. Most people are, at least on some level, a domestic engineer.
Early retirement means retirement from a traditional job. Early retirement is made possible by achieving financial independence, or the point where we no longer need to hold a full-time job to fund our lives.
The term FatFire refers to spending more (sometimes significantly more) money than the more typical budgets of early retirees. Spending $150,000 in early retirement qualifies as FatFire
Financial Independence Retire Early - The most common acronym in the financial independence and early retirement community. Probably what you are aiming for, even if you didn’t know it.
Financial Independence Optional Retirement - A term that refers to the idea that early retirement doesn't necessarily need to be a part of financial independence. Meaning, one can keep working a full-time job even after achieving financial independence.
The term LeanFire refers to extremely streamlined spending that might sound absolutely crazy or absurd to the average consumer. LeanFire requires living a small and frugal lifestyle, sometimes after one or more rounds of downsizing.
As people earn more, they have a tendency to spend more. This means that even though you earn more money each time, you are not saving more. In other words, you aren't acquiring additional wealth. Lifestyle creep - also known as lifestyle inflation, is the main reason why many high-income earners are not wealthy. To keep up with their lifestyle, high-income earners are often using credit. They have enough money to pay their bills and their interests each month. But they do not contribute to increasing their net worth.
One of the most widely-used tools for money management. Especially among those who want to make their money work for them.
The "pivot" is another way of referring to a lifestyle change or shift away from the more traditional full-time work lifestyle to one that's less demanding or more enjoyable. A pivot is a conscious and purposeful change and one that prioritizes happiness and fulfillment over money, power, and rank.
People that fancy buying things that convey success. This group believes that in order to be rich, you have to show off your riches. We disagree.
A side hustle is a project that one performs "on the side". Many early retirees pursue side hustles but one does not need to be an early retiree to have a side hustle. Anyone, regardless of their phase or position in life, can have a side hustle.
The creative (and legal) exploitation of credit card points, side hustles, talents, and other ways to travel the world on the cheap.
You're not a "real" index fund investor unless you own Vanguard's Total Stock Market Index Fund. It's all the rage.
How many of these did you know, and what others did I miss?