What does it mean that you could live off the interest of one million dollars?

Living off the interest of one million dollars means that the income generated from investing that principal amount can cover your living expenses without depleting the original capital. For example, if you earn an average annual interest rate of 4%, you would generate about $40,000 per year, which could be used for daily expenses. This concept highlights financial independence, where your investments provide sufficient income to sustain your lifestyle.