FIRE, FIRE ANTS and Other Financial Acronyms You Need to Know
The personal finance world loves acronyms. I myself am to blame for this; just last week I asked how you spend your money, like DINK or like HENRY . And let’s be honest: there is no decent way to say “DINK.”
There are a dizzying array of abbreviated terms that relate to financial concepts, from investment strategies to retirement plans to personal spending habits. Understanding some of the most common acronyms can help you understand financial jargon and speak knowledgeably. Here are some key financial acronyms and what they mean.
Financial Acronyms You Need to Know
HENRY
“ High earnings, but not yet rich.” A HENRY is a person who has a high income but has not yet accumulated enough assets to be considered truly wealthy. They make good money but still feel financially constrained.
HENRY BIAD
“High earnings, not rich yet, because I’m a fool!”
This playful acronym makes fun of HENRYs, who may earn a lot but are bad at managing their money.
DINKY
“Double income, no children.” DINKs are couples with two incomes and no children. Not having children allows them to focus their income on goals such as retirement savings.
Some fun DINK variations:
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DINKY. “Double income, no children… yet”
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DINKER. “Double income, no children, early retiree”
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DINKWAD. “Double income, no children, with a dog”
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DINKIANDE. “Double income, no children yet, and no dogs either.”
And some other related abbreviations:
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SINK. “Single income, no children”
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SIC. “Single Income Kids”
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SILK. “One income has many children”
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DICK. “Double Income Kids”
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DUKE. “Double work with children”
The list continues with clever discussions about marital status, family size, income and financial goals.
YUPPIE
Classic: “Young Rising Mobile Professionals.” Yuppies are young professionals focused on advancing their careers and status. The term became popular in the 1980s. Yuppie is a variation on the theme of “young urban professional”, superior to the perhaps cooler-sounding word “yumpie”.
FIRE
“Financial independence, early retirement.” The FIRE movement is now about maximizing savings and investments so you have enough money “saved” to retire well before the traditional retirement age of 65. FIRE adherents strive to achieve complete financial independence and flexibility by age 40 or 50. The concept of FIRE has gained popularity in recent years, but if you are against it, you may be a FIRE ANT, also known as a “FIRE Antagonist.”
Even more ridiculous acronyms you probably don’t need to know
People love to try to create new terms. Some handle this better than others. Here are a few fincronyms I’ve seen online that may or may not be that useful in the real world. But hey, they’re fun.
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NERD . “Good pay, ridiculous discipline”
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VIMP . “Wonderful income without persistence”
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SASVO! “Saving to see the world!”
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GROW . “How to become rich in no time”
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AFRO. “Amazingly thrifty reinforcement officer”
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DIRD . “Decent income, ridiculous discipline”
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VERP . “The Cheapskate with Early Retirement”
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JUG . “Passive income, two children, early retirement”
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MINKY . “Multiple income, no children yet”
After all, the purpose of these acronyms is to simplify complex financial topics into a condensed form. Learning key acronyms can help you decipher financial language and gain more confidence in money management and planning, but if you forget what “DIRD” is, don’t BYU (beat yourself up).