Freedom Number


Many people have heard of the”Financial Freedom Number”. How exactly do we calculate this freedom number? There are several ways that this number comes about, but it also depends on what you are looking for. In order to get your freedom number, you have to break down how much you need financially to reach your goals. The first step is to Figure out how much your expenses are currently. As you grow your income outside of your job, you will take the profits to pay for your bills. This is the start to calculating your freedom number.

For example: Lets say your monthly bills are $2,000 per month. The first goal is to generate enough money to pay for your $2,000. Next, you will be able to estimate the cost of insurance, setting aside for retirement, eating out, entertainment etc. Once these numbers are added, lets say we are are $3,000. You then must come up with an additional thousand dollars. to be at a break even. I would look at it the way Tim Ferris spoke of in his book The Four Hour Work Week. He said that you should earn an additional 30% just to be safe. For example, if you needed $3,000, multiply that by 1.3 for a total of $3,900. Thus your true freedom number would be $3,900. 

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For examples of how to generate this type income check out the Income section of this site. There are several ways to earn this extra income, but the best way is to focus on something that takes minimal time investment to get you going. In the digital age we live in, it is now easier than ever to get a side income going and have it work for you rather than you working so hard for it.

One of the easiest ways to get you going is starting a budget which is 100% Free to do, and will get you on the fast track to success that much sooner. One of the best budget trackers is one you can get in an app. It is called Every Dollar Counts and gives you a zero based budget where you assign every dollar to do its task.