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Financial Freedom Budgeting

Steps

1. Cost
   • List out the monthly costs of your desired lifestyle
     • Allowance, utilities, rent
     • Gross Living Cost = Lifestyle Cost + Allowances = 14000
     • Net Living Cost = GLC / .60 = 23,333/mo
2. Income Targets
   • Set target amounts for money sytems and business income
   • Calculate money system target by multiplying Net Living Cost by 12, then divide by 5%
     • ex) 5,599,920
   • Calculate business system by multiplying Gross Living cost by 5.
     • ex) 70,000/mo
   • Create a business that generates $70,000/mo in passive monthly income. 40% will go to taxes, 40% to the money system, and 20% to lifestyle.
   • Being able to passively support this lifestyle through a money system would be 5,599,920
   • Five percent interest on this amount is roughly $23,000 monthly, which covers lifestyle and taxes.
3. Start
   • You will need to start of small, and work your way there
   • Start by dropping change into a container
   • Trains yourself to visualize your goal moving closer
   • Forces you to evaluate whether you’re making significant progress
   • Change your relationship with money

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