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FUN with acronyms

Writer's picture: 7 Picos Finance 7 Picos Finance


ETA EOD NSFW IKEA DOA IVF OPP WFH IMO IHOP FYI ASAP PTO SME CIA FBI DOJ FTE CRM VHS DVR SEO TOS OOO CV COB B2B CTA CEO CFO CPU ROI YOY IPO P&L API ISP B4N ATM BFF BRB CYT DM DIY FOMO ICYMI IMHO JK NVM POV SMH TBD WDYM KPI SLA SWOT WWW PSG SCOTUS FLOTUS NASA KGB TIME SMART SPA.


Phew..........


An acronym is a “clever” way of shortening a series of words into a single word. Unlike an abbreviation, which simply cuts part of the word out (for example, when “doctor” becomes “Dr.”), an acronym uses the first letters of each keyword in the phrasing or name. So, for example, “FBI” stands for the Federal Bureau of Investigation and 'NSFW" stands for Not Safe For Work.

 

There's a bunch of acronyms frequently seen in the Personal Finance space so I thought it'd be fun to break out some of the ones most commonly used. Let's go:

 

YOLO – You Only Live Once

A mindset that often justifies spending for immediate enjoyment and gratification rather than saving or long-term financial planning. Sometimes coupled with low savings, impulse spending and debt accumulation and also taking high risk behavior.

 

FOMO – Fear Of Missing Out

The term originally referenced the distress one feels at missing out on general experiences and opportunities. However, as used in investment circles, FOMO is somewhat linked to emotions like impatience or envy which can cause investors to make hasty and/or bad decisions - think penny and meme stocks. FOMO can also contain a social component, for example, like when an individual compares their lifestyle against that of their friends or family and feel that it's lacking something.


SINK – Single Income, No Kids

Refers to individuals with a single income and no children, often with fewer financial obligations than households with dependents. They typically enjoy greater financial freedom and flexibility due to the absence of child related expenses and obligations but sometimes feel pressure from friends and family to conform to traditional life paths (married with kids).

 

DEWK – Dual Employed With Kids

A household where both partners are employed and have children, typically managing higher living expenses due to family responsibilities. This is the common demographic for many modern families where both parents contribute financially and with managing responsibilities. There's often a feeling of time constraints and other stresses.

 

DINK – Double Income, No Kids

Refers to a household with two incomes and no children, often with higher discretionary income. The focus is solely on building wealth, enjoying discretionary spending or pursuing personal and professional growth. They sometimes face judgement from friends and family for prioritizing money over traditional family planning.


FIRE – Financial Independence, Retire Early

A movement that focuses on aggressively saving (sometimes up to 70% of their income) and investing the difference in order to achieve early retirement. Participants adopt a minimalist lifestyle and focus on frugal living. There are, however, subsegments of FIRE which include Lean FIRE, Fat FIRE and Barista FIRE.

 

HENRY – High Earner, Not Rich Yet

Describes individuals who earn a high salary but have not yet accumulated substantial wealth due to lifestyle or spending habits. Typically younger professionals, entrepreneurs or dual income couples who earn well above the national average but struggle to build substantial wealth. Often feel the pressure to maintain a certain lifestyle (or at least impression of one).

 

One last one......... IKEA. Did you know that it stands for the initials of founder Ingvar Kamprad, Elmtaryd, the farm on which he grew up, and Agunnaryd, the nearby village.

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All the content, narratives, posts, comments, and messages presented here are intended solely for informational and educational purposes.

It is of utmost importance that you conduct thorough research before making any investment, taking into account your individual circumstances.

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