Your Financial Freedom Math

 

Follow me on Twitter here: Twitter.com/Wes_Lee_Success

Browse my latest books here: http://amazon.com/author/wes_lee

 

Doing Your Freedom Math

               We live on an economic planet. No matter what you want to be, you need money to live. I’m going to teach you a freedom formula to calculate the income you need to achieve financial freedom. 

The Formula

               Here it is: Be + Do + Have + (2.5x your monthly expenses). We need to add the economic costs of who you want to become, what you want to do with your extra time, and what you want to have; this is your fulfillment figure.

 

               Then, we’ll take your fulfillment figure and add 2.5 times your regular monthly expenses. With this formula, you’ll know the exact number needed for freedom. After that, we’ll get you on track to pass that figure.

The 4-Step Process

               Always do the math first, and create the strategy around the math second. First, set a date for your goal. How far out is your goal? Three months? 6? 12? I recommend between 6-24 months.

 

               Next, create a list from 1-3 and write three things you want to become in that timeframe. For example, you may want to become a top chef, a botanist, and an animal rights activist.

 

               Third, create another list of no more than three things you want to do in your timeframe. For instance, you might want to take a 7 hour VIP tour of Disneyland, surprise your whole family with dinner at Nobu, or write a book.

 

               Fourth, create a list of no more than three things you want to have in your timeframe. This list will include the stuff you want. Examples include a virtual reality headset, a new Range Rover, or a Dyson vacuum.

 

               Your lists can include anything you want. There are no limitations, there are no wrong answers, and there are no feelings of guilt allowed. Think of this as your guilt-free exercise. If you want to do a vacation in Italy with fine wines, don’t write about going on a church mission because you feel guilty for your desires. Don’t think, just write what comes to mind.

 

               Got it? Fantastic! Now, as you know, it’s no secret that most of what you write will cost money, especially what you want to have and what you want to do.

 

               To the right of what you want to become, write what you want to be able to do, and then the cost. Finally, add up the total. We always want to become something, so that we can do something we couldn’t before. Here’s how this looks:

 

Example

               Top-chef (become) = Master 10 difficult culinary dishes including consommé devilish (do) = $3,246 at Henry Ford College (cost).

 

               Botanist (become) = Master tissue culture (do) = $250.95 for a tissue culture micro clone kit (cost).

 

               Animal rights activist (become) = Volunteer at your local animal shelter (do) = $0 (cost).

 

               The total cost to become a top chef, botanist, with a heart for animal rights is $3496.95 plus your time.

 

Take Action

               Next, to the right of the cost, write the smallest step you can take to get started with each “be, do, have” item. Then, set a deadline to do it. For the top chef, I would write, “go to the Henry Ford College website and schedule a phone consultation within seven days from today.” Then I would progress on that step, and plan out the next level, for example, “visit the Henry Ford College for a tour of the facility, within fourteen days from today.” Follow a logical progression of steps.

 

               Once you’ve written out your steps for each of your items, it’s time to do the math. Remember that Be + Do + Have + (2.5x your monthly expenses). So, the fulfillment formula is $3496.95 +(2.5x your monthly expenses). If my monthly expenses are $4,000, then $3496.95 + (4,000) = $7496.95

 

               That figure is MUCH less than the millions of dollars that people think they need to live a fulfilling life. Take the final fulfillment figure and divide it by 30 days in a month.

 

               $7496.95/30 = $249.90 per day. If these were your dreams, you would only need to earn $249.90 per day to have what you want. Now that you have the math, you can create your strategy around the math.

 

Craft Your Strategy

               How can you take the work you already do and create branches of cash flow from it? For example, a full-time nurse could create an online course in their spare time to teach proper wound care. How about a full-time cook that writes a cookbook of their favorite recipes and publishes it online as an ebook? Whatver you do, think about how you can create passive income without a second job, or additional time at work. Seek to have money, technology, and other people replace your time at work. When you put money, technology, and other people to work for you, you're free to expand your freedom and do what fulfills you.

 

Follow me on Twitter here: Twitter.com/Wes_Lee_Success

Browse my latest books here: http://amazon.com/author/wes_lee