"How much does your dream life cost?"
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How about this, I sat down last night and I asked myself: What is it that I am really working for here? I am attempting to accumulate goods that satisfy my own pleasures but... What is it that I really want? (goods & services) and... How many dollars will I need to acquire the goods? The hard-up amount I'll need so I can own them free and clear and enjoy all the benefits these acquired goods render me.________________________________________________
"I wanted to finally put a aggregate price on my dream life style, so I could determine how long it was going to take me to get there."
And I had asked myself these questions before but, I decide it was time to make a FIRM DECISION and figure out the pieces of the puzzle. That way I could also become aware of what my future possible expenditures may be and also so I could peak into my future reality I will have as an excessively wealthy Entrepreneur. (My ideal is to choose how I want my life and then perform the actions that lead me to having the reality I envision.)
W knew that there must be an estimated price on my satisfaction, I just didn't know what it was until I did a little session of day dreaming and imagining. I conducted about a 3-4 hour session of research on things like islands I may want to buy, cars I may want to own, hot locations I may want to travel too, activities I may want to enjoy in retirement, and on and on.
Then, I took out a sheet of paper and wrote down the following:
- A. What is the cumulative cost of all around basic luxuries I desire? (How much will the total amount physical stuff will I need to acquire to be happy? This is very educational and requires you get creative too because you are actually choosing a product that fills your own need and then attaching a price that you would pay for it to the product. It's basically marketing research just on yourself.)
- B. After I acquire the base goods... How much self replenishing income will I need for "on going" consumption obligations and expenditures? (In essence, you're trying to figure out the amount of "consumption capital" you'll need to maintain in order to support your frivolous consumption.)
- C. How much money do I want to use on the acquisitionment of Assets each month and how much self replenishing income do I need as on going investment capital? After all the business we all want to be in is the business of money multiplying into more money.
So, I basically wanted to figure out was, how much is all of this going to cost me when my economic ship is that big. So I drew 3 buckets. One entitled "Lump Of Heaven" the other: "On Going Consumption Capital" the other: "On Going Investment Capital"
*I did more this way but, will keep it short and simple for ease of reading!.
Eventually, I pulled out a separate piece of paper and I listed each item I would need to fulfill my little lump of heaven and then I listed each on going service I would probably require. I tried to tally up how much my on going residual/passive expenditures would be. And lastly I tried to envision which Investments I would probably purchase and how much I might be able to invest each month.
So after I did all my day dreaming and drooling at the good life, my paper looked something like this:
STATIC EXPENDITURES:
Lump Of Heaven:
Cost | Item- $500,000 - A House Off The Shores Of Maine
- $250,000 - Certain Model Bentley
- $150,000 - Self Replenishing Electricity System
- $150,000 - Self Replenishing Water System
- ........$45 - Self Replenishing Supply Of MJ (no DeMarco)
- $100,000 - Self Replenishing Supply Of Food
- __________________
- __________________
- __________________
- __________________
(You're trying to figure out which consumption obstacles/expenses you'll encounter only once and what they're price tag is.)
VARIABLE EXPENDITURES:
On Going Consumption Capital
Cost | Item- ..$500 - A Human To Wash My Car
- ....$50 - A Human To Maintain My Hair
- $2500 - A Human To Maintain My House
- $2000 - A Human To Guard My House
- ..$900 - Health And Bodily Upkeep (If Not Expended Re-Invest In Security/Insurance Fund)
- ..$400 - Fueling My Vehicles
- __________________
- __________________
- __________________
- __________________
(You're trying to figure out how much your total dream lifestyle would cost you each month to maintain.)
On Going Investment Capital
Cost | Item- $100,000 - Gold & Silver
- $100,000 - Oil & Other Investment Grade Commodities
- $100,000 - Internet Start-Ups
- $100,000 - Brick And Mortar Business Systems
- $100,000 - Real Estate
- ..$400 - Fueling My Vehicles
- __________________
- __________________
- __________________
- __________________
(You're trying to figure out how much your total dream investments would cost you each month to maintain.)
Well, then I began asking more questions like: If I need $1,000,000 to cover this bucket's monthly spill, how many people will I need patch it up by putting cash into this bucket every month? And at how many dollars per person will I need?
Ended up coming up with answers like: "You need 200,000 people sending you $5 a month to cover a $1,000,000 in expenditures. Well, they'll need to pay you more than that if you are going to fund it out of cashflows. You'll need to be able to retain $5 from your gross after COGS is dispensed with other Operating Costs. So maybe $3,000,000 ($15.00) total and $1,000,000 ($5.00) in cashflows. But, you need an audience of residually buying consumers."
Truly, I took it further than I originally intended but, I ended up finding out exactly what everything would cost.
Trying to figure out what the cost of the Cashflows will be to cover the Maintenance. LoL.
Overall, get started right now and try this exercise for yourself. Let your imagination fly and see what you can come up with!
Utilizing this exercise, I'm trying to change my reality. I drew a doodle to describe it, I think it's very intuitive.
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