GreenHouses
New Contributor
The goal of financial freedom can be daunting, especially when you are starting out.
So it is helpful to break the goal down into smaller parts, or milestones along the way.
When you reach the milestones, you can feel a sense of accomplishment, and know that you’re making progress.
Something I’ve found really helpful is to set milestones by relating a certain amount of passive income to different components of my living expenses.
For example, your annual living expenses might be $60,000 per year, broken down as follows…
Tax - $12,000
Mortgage payments or rent - $18,000
Food - $10,000
Car expenses - $3,000
Insurance - $2,000
Holidays / fun - $5,000
Other - $10,000
So once you have say $10,000 of passive income per year from your investments etc, you can say to yourself that your passive income covers your food bills for the year. Cool! Once you get to $28,000 passive income per year, you have covered both your mortgage (or rent) AND your food expenses. It’s a wonderful feeling when you reach these milestones. It gives you a taste of what it will feel like when your passive income exceeds your living expenses and you’re financially free.
You may instead prefer to relate your level of passive income to covering x number of months of your living expenses. For example, using the above figures, once you have a passive income of $5,000 per year, you’ve got one month worth of your living expenses covered and so on.
Break it down however you like and have some fun with it.
So it is helpful to break the goal down into smaller parts, or milestones along the way.
When you reach the milestones, you can feel a sense of accomplishment, and know that you’re making progress.
Something I’ve found really helpful is to set milestones by relating a certain amount of passive income to different components of my living expenses.
For example, your annual living expenses might be $60,000 per year, broken down as follows…
Tax - $12,000
Mortgage payments or rent - $18,000
Food - $10,000
Car expenses - $3,000
Insurance - $2,000
Holidays / fun - $5,000
Other - $10,000
So once you have say $10,000 of passive income per year from your investments etc, you can say to yourself that your passive income covers your food bills for the year. Cool! Once you get to $28,000 passive income per year, you have covered both your mortgage (or rent) AND your food expenses. It’s a wonderful feeling when you reach these milestones. It gives you a taste of what it will feel like when your passive income exceeds your living expenses and you’re financially free.
You may instead prefer to relate your level of passive income to covering x number of months of your living expenses. For example, using the above figures, once you have a passive income of $5,000 per year, you’ve got one month worth of your living expenses covered and so on.
Break it down however you like and have some fun with it.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
