Let’s Remove Money as the Barrier Between You and Your Best Life

WHAT IS, “F.I.R.E.?”

F.I.R.E. stands for Financial Independence and Retiring Early.

Nobody knows who originally coined the term, but over the past few years it has blown up to become a massive movement, so much that they’ve even made a feature-length documentary about it. I stumbled upon the idea of F.I.R.E. in high school, when I came across a finance blog that mentioned the idea of retiring by 30. I was intrigued to say the least. Prior to that moment, I thought the only escape to the 9-5 rat-race for middle-class people like myself before age 65 was through the lottery. Luckily, I discovered that there is another way out.

Financial Independence occurs when you have enough money coming in each month to pay your bills without the need to work for it.

There are three main ways to reach financial independence:

Win the Lottery

This is extremely unlikely to happen to you. 1 in 300,000,000 just ain’t it, chief.

Create passive income streams (E.g. Blogging, rental real estate, YouTube, dividend-paying stocks).

The problem with this strategy is that it usually takes a lot of time to build traction to the point where your stream starts actually making money, and most people give up before the results come. Also, none of these methods are truly passive in my opinion. You still have to actively manage whatever you’ve invested your time and money into, so ‘passive’ income is really just a buzzword.

Save some of what you already earn and invest in low cost, tax-advantaged index funds.

Obviously this is the most realistic option for most of us.

Retiring Early doesn’t mean waking up at 4am every day to drink stale coffee, play golf, and fall asleep watching daytime television.

It means having the freedom to do whatever you choose to do with your own time, while you still have some youth. It means being able to start that business and have the time to work on making it successful. It means having the ability to walk away from that toxic boss or the coworkers you despise, because you won’t need the job anyway. It means having the option to travel the world, volunteer in your church or local community, or master the hobbies and sports you never seem to have enough time for. You’re the one who gets to decide what each day looks like, and what your life looks like, not the person who signs your paychecks.

The key is not being financially bound to any situation, be it a job, relationship, or location, because having the money to pay bills simply won’t be a concern for you anymore.

How Can You Retire Early?

Here’s the secret formula to financial independence:

Save half your income, and don’t pay some wise-guy a hefty annual fee to ‘manage’ your portfolio for you… Do it yourself! (With my help, of course).

Let’s say you make $40,000 a year after taxes. If you reduced your expenses (housing, transportation, food, etc.) to $1,000 a month, you could retire in just 10 years with $300,000 in the bank without ever getting a raise. If $1,000 a month isn’t enough for you to live on until the end of time, work for 5 more years and you’d have $440,000 to play with, or $1,467 per month.

If you make $100,000 a year, the same concept applies. Reduce your monthly expenses to $3,000 a month, and you’d retire in just 14 years with $900,000 in the bank. At this point, you’d be earning at least $36,000 a year, or $3,000 a month, from your invested capital alone (not accounting for market earnings).

This math works because it assumes a Safe Withdrawal Rate of 4%, meaning you’d only withdraw 4% per year. History indicates an average annual yield of at least 4% throughout even the lowest-performing financial periods of time, meaning it’s a safe rate to assume. The actual historical rate is closer to 10%, so 4% is a conservative estimate.

The math behind early retirement is shockingly simple, but putting the steps in place to get there is not, by any means, easy. That’s where I come in!

What Does A Financial Coach Do?

The vast majority of Americans don’t have $500 saved to pay for an emergency, and the average savings rate for Americans is about 6%.

My job is to show you how you can easily save 50% of your income, invest your savings wisely, and literally run laps around ‘average’.

I do this in a variety of ways:

  1. I help you track your expenses and create a monthly budget that you can stick to. We’ll consistently review the budget and make changes as necessary.
  2. I find ways to lower your expenses by making phone calls to negotiate bills down, discussing different lifestyle choices to save you money, and finding cheaper companies for you to do business with.
  3. I educate you about tax-saving strategies and what types of investment accounts will be optimal for your situation.
  4. I work with you to establish your financial goals and break down how much money you’ll need to set aside each month to reach those goals by a specific date.
  5. I calculate your net worth and based off of your income and career trajectory, help you create a realistic path for debt repayment and/or early retirement.

My focus is on establishing a clear-cut plan for you to reach financial independence and retire early without unnecessary sacrifice.

How will I help you reach financial independence?

As an accountant, I understand cash flow statements, debits and credits, balance sheets, and profit and loss reports. I basically live in Excel. My job is to help you apply those concepts to your personal finances and optimize your life by increases your inflows and decreasing your outflows.

I will take your personal situation and tailor it to these accounting concepts I’ve spent years mastering, so you can enter auto-pilot mode, doing your thing while you stash away cash for a breezy early retirement.

Let me handle the boring numbers that seem to make me happy, while you focus on what makes you happy. Let’s work together.

Work with me