Resources

Glossary

Key terms used across the calculators and content.

Savings & Income

Savings Rate: The percentage of your net (after-tax) income that you keep after all expenses. Formula: (Income − Expenses) / Income × 100.
Net Worth: Total assets minus total liabilities. Includes cash, investments, property, and land, minus all debts.
Nest Egg: A target amount of savings/investments needed to fund your return or retirement.
FIRE Number: The capital needed so investment returns cover your living costs indefinitely. Formula: Annual expenses / Withdrawal rate.
Black Tax: Colloquial term for the financial support diaspora send to family back home — recurring monthly contributions to parents, siblings, and community.

Remittance: Money sent by a diaspora member to family or recipients in their home country.
FX Spread: The difference between the mid-market exchange rate and the rate a transfer provider actually offers you. A hidden cost of remitting.
Opportunity Cost: What your money could have earned if invested instead of spent or remitted. In the Remittance Audit, this is the future value of your transfers if invested at a given return rate.

Avalanche Strategy: Debt payoff method that targets the highest-APR debt first. Mathematically saves the most interest.
Snowball Strategy: Debt payoff method that targets the smallest balance first. Builds psychological momentum through quick wins.
APR: Annual Percentage Rate. The yearly cost of borrowing, including interest and fees.

Stamp Duty: A tax paid on property or land transactions. Varies by country — ranges from 1% (Ghana) to 10% (some Nigerian states).
Title Search: A legal investigation to verify who actually owns a piece of land or property, checking for disputes or encumbrances.
Holding Cost: The ongoing cost of owning land while you're abroad — property tax, security, maintenance.

Compound Interest: Interest earned on both your principal and previously earned interest. Formula: A = P(1 + r/n)^(nt).
Withdrawal Rate: The percentage of your invested capital you withdraw annually in retirement. The '4% rule' is the standard guideline.
Inflation: The rate at which prices increase over time, reducing purchasing power. Your target nest egg must be inflation-adjusted.