What is your escape number? What I mean is… what number will it take for you to be financially free. For me, that means that you have enough coming in from non-employment income consistently to cover your monthly living expenses.
Everyone seems to think it's $10k a month…that’s what most people tell me. I am willing to bet your number is lower than you might think. When Jill and I set a goal to escape the rat race, our number was $4000 a month. It would take that amount every month to cover our expenses.
We were able to accomplish that with one small deal.
As we continued to do more deals, the profits from those deals became the insurance we needed to quit our jobs…forever. Even when I flipped properties or put on my Realtor hat and made a commission, I would divide my payday by 12 to see how it impacted my monthly income.
As I pushed forth and did more deals, we started dividing by 24, then 36 and later 48 months. We also saved up 2 years of expenses over and above that so we could sleep well at night.
Let’s keep in mind I am not asking you to downgrade your lifestyle, nor am I asking you to suffer in any way. Instead, I am suggesting you add up your monthly living expenses and take a hard look at the expense column.
If you are anything like me, you will most likely see more going out than you are comfortable with. The good news is that a few slight changes to that expense column can make giant strides towards becoming financially independent. When (not if) you find expenses that you simply don’t feel are necessary, eliminate them!
Lots of people think that financial freedom means you must be a millionaire, that’s simply not true. It’s not about piles of cash, it’s about streams of cash and more importantly, how long those streams will last as referenced above.
I’d like you to figure out what your escape number is, if you have trouble, book a time slot with me and let me help you sort that out so you can get on the track to financial freedom. You can do that by visiting CashFlowGuys.com/asktyler