Wealthy B★tch Blueprint
The Glossary.
Every money term you'll meet in the course, in plain English. No gatekeeping, no jargon. Search for what you need.
A
- Anti-budget
- A looser approach to money: instead of tracking every category, you pay yourself first (savings and investing come out automatically) and spend the rest guilt-free.
- Asset
- Anything you own that has value, like cash, investments, or a home. Assets put money in your pocket over time.
B
- Barista FIRE
- A version of financial independence where your investments cover most of your costs, so you only need light or part-time work to fill the gap.
- Bond
- A loan you give to a government or company. They pay you interest and return your money later. Generally steadier and lower-return than stocks.
- Brokerage account
- An account you use to buy and sell investments like stocks and funds. A regular (taxable) brokerage has no contribution limits and no early-withdrawal penalties.
C
- Coast FIRE
- The point where you've invested enough that, even if you never add another dollar, compound growth alone will carry you to retirement. You just cover today's bills.
- Compound interest
- Earning returns on your returns. Your money makes money, then that money makes money too. The single most powerful force in building wealth.
D
- Dividend
- A share of a company's profits paid out to people who own its stock, usually a few times a year.
- Dollar-cost averaging
- Investing a fixed amount on a regular schedule no matter what the market's doing. It removes the guesswork and the temptation to time the market.
E
- Emergency fund
- Cash set aside for life's surprises (job loss, car repair, medical bill), usually 3 to 6 months of expenses, kept somewhere safe and easy to reach.
- Employer match
- When your employer adds money to your 401(k) based on what you contribute. It's free money, so grab all of it.
- ETF (exchange-traded fund)
- A basket of many investments you can buy in one purchase, traded like a stock. A simple way to own a slice of the whole market.
- Expense ratio
- The yearly fee a fund charges, shown as a percentage. It sounds tiny but even 1% can quietly cost you six figures over a lifetime.
- Equity
- Ownership. Owning stock means owning a piece of a company. Home equity is the part of your home you actually own (value minus what you owe).
F
- Fees
- What you pay to invest, whether to funds or advisors. Small percentages compound against you, so lower fees usually mean more money kept.
- FIRE
- Financial Independence, Retire Early. The goal of investing enough that work becomes optional.
- Freedom number
- The amount you need invested so the returns alone cover your life. A common rule of thumb: about 25× your yearly spending.
- 4% rule
- A guideline suggesting you can withdraw about 4% of your invested savings each year in retirement without running out. It's where the 25× target comes from.
H
- HYSA (high-yield savings account)
- A savings account that pays much more interest than a regular bank account. The best home for your emergency fund.
I
- Index fund
- A fund that simply tracks a whole market index (like the S&P 500) instead of trying to beat it. Low fees, broad ownership, a beginner favorite.
- Inflation
- The slow rise in prices over time, which means cash loses buying power just sitting there. A big reason saving alone isn't enough.
- IRA (Individual Retirement Account)
- A retirement account you open yourself. Roth uses after-tax money and grows tax-free; Traditional may lower your taxes now and is taxed later.
L
- Liability
- Anything you owe: credit card balances, student loans, a mortgage. Liabilities take money out of your pocket.
- Liquidity
- How quickly you can turn something into cash without losing value. Cash is very liquid; a house is not.
M
- Mutual fund
- A professionally managed basket of investments. Similar to an ETF, but priced once a day and sometimes carrying higher fees.
N
- Net worth
- Everything you own minus everything you owe. Your true financial starting line, and the number to watch grow.
P
- Portfolio
- The whole collection of investments you hold, across all your accounts.
R
- Rebalancing
- Adjusting your investments back to your target mix after some have grown faster than others. Keeps your risk where you want it.
- Return
- The gain (or loss) on an investment, usually shown as a percentage per year.
- Risk tolerance
- How much ups and downs you can stomach without panic-selling. It helps decide how much you keep in stocks versus steadier assets.
S
- Stock
- A share of ownership in a company. If the company grows, your share can grow too.
V
- Vesting
- The waiting period before employer contributions (like a 401(k) match or equity) are fully yours to keep if you leave.
4
- 401(k)
- A retirement account offered through your job, often with an employer match. Contributions usually come straight out of your paycheck.
No term matches that. Try a different word, or ask us in the community.
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