FIRE Movement Basics

Hey Coach,

“Retire early” gets the headlines.
Financial independence is the real win.

The FIRE movement isn’t about quitting coaching at 35 and living on ramen. It’s about building options - so money doesn’t control your schedule, your stress, or your choices.

Let’s break down what FIRE actually means, how it works, and how coaches can apply the principles (even if early retirement isn’t the goal).

1. What Is the FIRE Movement?

FIRE = Financial Independence, Retire Early

At its core, FIRE is about this simple idea:

Build enough invested assets so your money can cover your living expenses - without relying on a paycheck.

Early retirement is optional.
Independence is the point.

Think of FIRE like having a deep bench:
You don’t have to play your starters heavy minutes if you don’t want to.

2. How Financial Independence Works

Financial independence happens when your investments can support your lifestyle.

The most common rule of thumb is the 4% rule:

• If you can live on 4% of your portfolio per year,

• Your money can likely last decades.

Example:

• Annual expenses: $60,000

• FIRE number ≈ $1.5 million ($60,000 ÷ 0.04)

That’s the theoretical finish line - but remember:
You don’t need to hit FIRE to benefit from playing toward it.

Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even

In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.

Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.

But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.

So, maybe that’s why they’re not alone; Vanguard projects about 5%.

In fact, now just about everything seems priced near all time highs. Equities, gold, crypto, etc.

But billionaires have long diversified a slice of their portfolios with one asset class that is poised to rebound.

It’s post war and contemporary art.

Sounds crazy, but over 70,000 investors have followed suit since 2019—with Masterworks.

You can invest in shares of artworks featuring Banksy, Basquiat, Picasso, and more.

24 exits later, results speak for themselves: net annualized returns like 14.6%, 17.6%, and 17.8%.*

My subscribers can skip the waitlist.

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_{*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}

3. The Core FIRE Principles

FIRE isn’t magic. It’s math + behavior.

1. High Savings Rate

FIRE followers focus less on returns and more on how much they save.

• Traditional advice: save 10–15%

• FIRE mindset: save 25–50%+ when possible

Savings rate is the accelerator.

2. Lifestyle Control

FIRE isn’t about deprivation - it’s about intentional spending.

• Spend heavily on what matters

• Ruthlessly cut what doesn’t

This is defensive discipline - not punishment.

3. Simple, Low-Cost Investing

Most FIRE investors use:

• Index funds

• Low fees

• Long-term buy-and-hold strategies

No gambling. No hype. Just consistency.

4. Time + Compounding

FIRE works best when you:

• Start early

• Stay invested

• Let time do the heavy lifting

This is a long game, not a highlight reel.

4. Different Types of FIRE

Not all FIRE looks the same.

🔥 Lean FIRE

• Very low expenses

• Minimal lifestyle

• More restrictive

🔥 Traditional FIRE

• Comfortable but intentional spending

• Most common version

🔥 Fat FIRE

• Higher spending

• Requires higher income and savings

🔥 Coast FIRE

• Save aggressively early

• Let investments grow

• Work later only to cover expenses

Coast FIRE is especially popular with coaches.

5. FIRE for Coaches (The Realistic Version)

Most coaches won’t:

• Quit working entirely

• Stop teaching, mentoring, or coaching

But FIRE principles allow you to:

• Coach because you want to - not because you have to

• Say no to bad jobs or toxic situations

• Reduce stress and burnout

• Transition into part-time, consulting, camps, or passion projects

That’s freedom.

Final Whistle

You don’t need to “retire early” to win with FIRE.

You just need to:
✔️ Save more than you spend
✔️ Invest consistently
✔️ Control lifestyle creep
✔️ Build options over time

Financial independence is about leverage - not escape.

And just like coaching, the ones who win aren’t chasing shortcuts.
They’re running the same disciplined system, year after year.

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Coach Mike Klinzing
Founder, Wealth4Coaches
"Coach smarter. Save better. Live freer."