Getting to YOUR Financial Freedom Number | DO 68

Freedom Possible

Freedom NumberYou know you want financial freedom, but do you know how much money you need to achieve it?  Do you know what to do to get it?  Most people know they want more time and money freedom, but as much as they want it, they don’t have the slightest clue as to how much money they need to make financial independence a reality in their lives.

Some people need much more money than they thought, while others don’t need nearly as much as they assumed, bringing them that much closer to their goal of financial freedom.

Today’s episode is part 3 of our Freedom Possible Series.  On this episode, Matt walks you through the step-by-step process of finding the magic number that will grant you the financial freedom you’ve wanted for so long.  So grab a pen and a piece of paper and get ready to find your financial freedom number.

 

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5 Important Lessons from the Episode:

1   You cannot blindly guess at the amount of money you need to retire and hope that you’ll somehow end up there one day. You need to know your exact number and have a plan that will get you to it. Otherwise, you’ll end up like the overwhelming majority of Americans 65 or older who are financially dependent on church, family, or state.
 
2   Knowing your current monthly expenses is the first step in finding your financial freedom number. Take the time to sit down and list all of your monthly expenses. Then you’ll need to consider the expenses you would incur if you financially free (private school, weekly massages, increase tithing, buy a boat, etc.). Together these amounts make up your financial freedom number.
 
3   Few people have been taught to calculate their financial freedom numbers, and even fewer understand the importance of creating enough monthly passive income to cover them. If you want to be financially free, you must do both.
 
4   It is okay to fail multiple times before you get it right. If you aren’t on the road to financial freedom yet, it is not too late. Start now by adopting a residual income mindset, which is the only way that you will realistically become financially free.
 
5   Don’t waste time making your all own mistakes when you can learn from the mistakes of others. This shortcut will allow you to reach financial freedom faster than you ever thought possible.

 

What You’ll Learn:

  • What is financially possible in your life; and
  • How to ditch the path that you’re on so that you can actually make it to those goals.
  • What you need to do to generate returns that will get you to your number 15-30% times faster than traditional investment vehicles.
  • How to create “set it and forget it” systems that send checks to your mailbox every month.
  • How to implement tax strategies that will protect your assets.
  • Why most people will never achieve their monthly residual income goals using traditional investment vehicles.
  • The three paths you can take in creating residual income; and
  • Why two of them will leave you frustrated, broke, or both.

Resources Mentioned in this Podcast:

  • Get started on your own “do over” by downloading “The 3 Pillars of Creating the Ultimate Do Over” at FreeDoOver.com

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Podcast Transcript:

Voice Over: During an era where countless people, businesses and organizations are feeling the pinch, running out of time, running out of money, losing confidence, and feeling as if life is unfair. Praying for another chance and unless something is done, life is going to pass them by. Fortunately, in the nick of time, there is now a place where the ignored, underestimated and unknown steps to producing results and making life work are revealed.

Save your career, save your business, save your health, save your relationship and save your life. Get to where you are to where you want to be faster and with greater ease than you ever thought possible. Say hello to your Do Over.

Matt Theriault: Welcome, this is episode 68 of the Your Do Over Podcast and this is Matt, The Do Over Guy, Theriault and this is the podcast that will show you how to start over. It will help you identify whatever it is that didn’t work for you the first time or didn’t work for you last time.  I mean this is your chance to Do Over, to learn from your past mistakes, to learn from others past mistakes.

So you’re going to build a life of peace and joy and love and blessings and abundance and enjoy that life during the most active years of your life and to help you get a jumpstart on your Do Over, you can download The Three Pillars of creating the ultimate Do Over for free at FreeDoOver.com.

There you’re going to download this 55-minute mp3 audio program that I created just for you to help you get started as you get started with your Do Over, got it?

Alright so here we are today for part three of our multi-part Freedom Possible series. If this is your first time listening to this show or you haven’t been here for a while, make sure you go back and download episode 66 so you can catch up and get on the same page with everybody. If you did just fine this show, you’ve found it at a great, great time. But you still need to go back to episode 66 at least and start there.

Now before we go any further, you’re going to need a pen and piece of paper for this episode. You might want to take a deep breath and get mentally ready for this lesson, why? Well because in this lesson you’re going to see what’s really possible, not what it is possible in some fictitious scenario either but what is really possible in your life specifically, your life.

Then after you see what’s possible, we’re going to start moving in the direction of shifting your path of possibility to a path of probability. That’s a fair deal? That sounds good? Awesome, now our last session ended with a question and I asked you to ponder, you know how long it will take you to hit your residual income goal.

So let’s begin there by revisiting that question. You know what is your monthly residual income goal? You know in order to accurately answer that question, we need to first figure out your individual number and this number is going to be unique to you. I mean everybody listens to this episode end up with a different number and a different amount of time it will take for them to hit their number.

What I found after I’ve taken thousands of people through this exercise is maybe you don’t need as much as you think you do to be financially independent. On the other hand, maybe you need much more than you think you need. We just don’t know yet and that’s okay. I mean a lot of people that don’t have the slightest clue as to what their number is.

But after today, you’ll have more than a clue. You’ll know exactly what your number is. Now I know you  can’t see this but I’m going to play the audio from a fairly popular commercial from the Financial Institution ING.

(Commercial starts)

Person 1: Hey Clark, what have you got there?

Clark: It’s my number. It’s the amount I need to save to return the way I worked. Is that your number?

Person 1: Yeah?

Clark: A gazillion, huh?

Person 1: A gazillion, bazillion, it’s just a guesstimation.

Clark: How do you plan for that?

Person 1: I blindly throw money it, hope something good happens. (laugh)

Clark: So you really don’t have a plan?

Person 1: I really don’t.

(Commercial ends)

Matt: A bazillion, a gazillion. ING, it gets it right in their commercials and marketing materials when they tell us that we need to know our number and to have a plan to get that number. That part they got down. That’s great advice. You got to know what your number is and you got to have a plan to get it. But we must also remember that as I’m recording this, they are advertising a 1% return on their money market account.

I mean they’re actually advertising this as their plan and they’re proudly using it to draw in customers. Now I don’t know what your number is yet and I actually use ING. I’m not picking on them. I’m actually kind of celebrating them because they’re probably one of the more liberal saving accounts available out there to the average person.

Now I don’t know what your number is yet but, you know whether that number turns out to be whatever it turns out to be, it’s going to take you a really, really long time to get there earning 1% on your money. So with this podcast episode be worth it to you if we could nearly just double the speed it would take to get your number.

It would be worth it to you if we just double it. You know regardless of where you are, we could double your speed to hit your financial independence number, your residual income number. What if we could double it again? What if we double it again and again and I’m not exaggerating here. This is not just possible.

If you stick around, this is going to be a probability for you of doubling your speed to your number several times over. So stick around. I’m going to show you how to generate a 15 to 30% return. That’s like 15 times faster than a vehicle like ING promotes. That’s a very conservative number actually, 15 times faster.

It doesn’t take too much effort to double that number going from 15% return to a 30% return. I’ll share with you how to create, set it and forget it money machines that deliver multiple streams of residual income to your mailbox each and every month. I’ll also teach you how to implement asset protection and the tax strategies that will help you realistically experience a return of 50% after implementing those tax strategies, 50% of return.

I mean realistically your returns can actually get even bigger than that, bigger than 50%. However, if these returns, if these types of returns are new to you like they are to most people, like” Yeah, right, sure.”

If there’s a new tea like that and they’re causing those types of thoughts going through your head, you probably wouldn’t even believe me if I told you what kind of returns are there for the taking.

If you did believe me, you probably wouldn’t get any sleep tonight. So with that said, let’s not get ahead of ourselves, okay? First, go ahead and pull out your paper and pen.

We’re going to take the first step towards creating your financial freedom by figuring out your number, your residual income number. Are you getting excited? I am. I’m getting very excited for you.

You’ll start by creating a collar that lists your monthly expenses. So take your piece of paper and one line right down the middle. You’re going to start listing your monthly expenses on the left hand column, in the left hand side of the paper. Don’t worry about getting it to the exact penny. I mean you do need to be accurate.

But just being exact is not essential. So go ahead and let’s create a list of required monthly expenses. Go ahead and start with your biggest monthly expenses first. For most this is going to be your mortgage payment on your house or your rent and then add your car payments and if you don’t have a car payment, no big deal, some of these expenses will apply to you and some will not.

I’m just kind of giving you some ideas. Some of you will have expenses that I’ve failed to mention also. So keep in mind all of your expenses.

Alright, so you got the mortgage, you got the car, the insurance, all types of insurance you might be carrying, utilities, credit card debt, you got a cell phone, you got internet, you got your cable TV service and I got my Apple TV. You got student loans, food, gasoline, dry cleaners, any sort of discretionary spending; don’t forget that and other miscellaneous items.

I mean maybe you have child care. That is certainly a new figure I’m going to have to factor in soon. Whatever it is, write all of your monthly expenses in the first column, that left hand column and then add them up. If you need to pause this podcast for a minute to get all that straight, go ahead and do that.

You have all your current expenses in your left hand column. You’ve added them up. Now in the second column, go to the right hand side of the page.

I want you to make a list of the expenses you want for you and your family. The expenses you wished you had. These are not required expenses like the first column. Instead think of these as a wish list of monthly expenses.

Expenses that if you had them, you would be living your ideal life, obviously if you had them you can pay for them. You’d be living in your ideal life. So write down what you would like to do in an ideal month of that, which that ideal life that would create that ideal life and how much those activities would cost you.

So write down what you would like to do in an ideal month of that ideal life that you’re envisioning for yourself and write down a price of how much those activities would cost you.

For example, I mean maybe you want your child to have piano lessons. Maybe that’s something that you want. So that could be an expense saying a $100 a month. I don’t know what piano lessons cost but let’s just say that. It’s something that you wanted. That’s an expense you wish you could have so you could give that to your child.

Maybe you want to increase your monthly titing at church. So maybe you’ve given $50 a month now and you want to put that up to $300 a month. That’s your number, whatever it is for you. So that’s an expense that you want to have, you wish you could do that. Maybe you want to go to the theatre with your spouse or your significant other and that’s going to cost you $300 a month.

You’re going to a couple movies; three or four movies or you’re going to a specific play or whatever that may be or a specific type of play, $300 a month for that.  You wish you could pay for that. Maybe you want to spend $500 a month to your parents. You just want to help support your parents and you want to send them $500 a month.

Maybe you want to eat out in a nice restaurant with the family twice a week, adding another say $500 to your monthly expenses. That’s something you wish you could do. You wish you could pay for that. So it’s an expense that you wish you had.

You know maybe you want to take a luxurious weekend get-away. Once per month which, I don’t know, might run, you know $2,000 for a luxurious weekend get-away with that special person to you.

Or maybe you just want an additional discretionary spending of $2,000. You just want to work around each month with $2,000 in your pocket. It’s up to you. This is your life. You get to design it how you wish.

These are your expenses that you wish you had and you wish you could pay for. These are all the types of items that I want you to put into this second column. I want you to add those up.

Okay, so you have in the left hand column, you have all of the required expenses right now that you’re experiencing, that requires you to maintain a lifestyle that you currently have and then you’re second column are all the expenses that you want that would create the ideal life for you. I want you to be realistic with these but I also don’t want you to hold back either.

I want you to add both of those columns up so once you’ve done that in both columns, go ahead and add up column one, add up column two and then add those together. You should have one big number.

That’s your ideal. That’s your number. That’s your residual income number. That’s what we’re trying to get at.

I know each and every one of you are going to have a different number. So let’s for the sake of keeping this really simple and easy to follow, let’s just say your total from both columns, the left column and the right column adds up to $10,000.

You need $10,000 a month to live your ideal life. So in order for you to live your ideal month every month, you would need a cash flow of $10,000.

So for example, $10,000.00 is your cash flow goal, your residual income goal, got it? If you need time to go back and finish this, I recommend that you do that because this exercise would be all for nothing if you don’t do this.

You won’t know exactly what it’s going to take for you to reach financial independence, for you to reach that financial prosperity, that financial freedom.

Go ahead and pause the podcast if you need to go finish that. Alright, so let’s back up a minute though. Do you remember from the previous episode how much money you would have to accumulate to generate $10,000 a month of residual income?

You remember that last episode you gave an example to generate $10,000 a month of residual income, how much would you have to save, how much would you have to make and save in today’s interest rates?

To generate that amount, you would have to work for and save $12 million to generate $10,000 a month of passive income, $12 milllion.  You heard that right. Even if you found an investment vehicle that delivered a better monthly return than the 1% of that ING account, you’re still looking at somewhere close to $10 million, maybe $9 million, $8 million. Let’s say $10 million.

So in order to retire in the next few years or sooner, do you think it’s more realistic for you to accumulate $10 million or to generate $10,000 a month of cash flow?

What sounds easier and more realistic? Working and saving $10 million or generating, creating $10,000 a month of cash flow?

You know unless you’re sitting on an accumulation of $7 million or $8 million already, then they’d have to think generating $10,000 a month of passive income would be infinitely easier for  you to create, right?

Since the obvious choice is to create the monthly cash flow of $10,000 or whatever number that may be for you, if that’s the obvious choice, why don’t more people do it?

Why don’t more people do it if it’s easier and sounds more realistic? Why don’t they do it? Well the answer is that nobody ever taught them how. More than likely, nobody ever taught you how either.

If they did, you probably wouldn’t be listening to me right now. Nobody has ever taught us how to do this. The problem is that you weren’t taught how to invest. Instead, you were told how.

You were told to entrust your money with human resources at your jobs so that they could put it in your 401K or something like that.

Or you’re told to send your money to a financial planner with the hopes that they knew what to do with it. By the way, financial planners are not financially educated. They are sales trained.

There’s a difference, there’s a big difference. That’s another conversation for another time. Financial Freedom, it comes from a good financial education.

And financial education is not about sending your money to somebody else every month. That’s not financial education. Financial education is about getting others to send their money to you every month.

That’s a residual income mindset. That’s the road to financial freedom. That is your goal. Your goal is to produce enough residual income each and every month to give you the freedom to truly make the life of your choice, to live your ideal month every month.

I’m going to show you how to do just that. Listen, whatever I may be that has you and I here together, I get it. As I shared my story with you earlier, I know what it’s like to be pursuing something to the best of your ability with the best of intentions and the greatest of hopes and have it fail you. For many of us, we fail multiple times trying to get it right.

Remember this, 97% of the population never gets it right. They never get it right, 97%. That’s almost everybody. I’m so grateful that someone showed me a realistic path to financial freedom. Something that was possible. I thank God each day for that person for what they’ve taught me. I’m very blessed that this path worked for me and that it worked for me just a few years.

Now I am financially free but that’s not necessarily the important information for you to know. What I want you to know is that I’ve helped countless people just like yourself, be on track on their financial freedom. What makes me even more excited is that I’ve watched many of them achieve their freedom much faster than I did.

Passive income and a residual mindset, that’s the answer. Creating passive income and having the residual income mindset. That’s the answer.

So at this point, you have three choices, you got three choices. These are the only three. If you think of something else, send me an email. I’d love to hear about them, okay?

But here are your three choices as you move forward. Choice one, you can spend two to three years learning, experimenting and making a multitude of mistakes on your own before you figure what actually works.

Then once you figure out what works, you can spend six months setting up your stream of residual income and after that you can spend another six months creating respect and authority within your network so people actually take you seriously.

That’s what I did. I took that exact path. I took the hard way. This is the path that most people have to take. It’s their only choice. They’re the only that’s ever done it before.

The problems with this path are that it’s painful, it’s seemingly takes forever and you know what, most people quit before the succeed. That’s choice one.

Choice two, your second choice is to continue doing what you’re doing right now. That is a choice, definitely a choice. “Matt, you’re full of malarkey. This just sounds crazy. This is not possible. I’m just going to keep doing what I’m doing.” You know that might be working a job well until your 60s or just scraping by on your own current retirement income.

I mean either way, you are most likely living a life considerably less fulfilling than the one you’re capable of living. That I know. You’re probably hoping that you’re an exception to the rule and the statistics won’t apply to you, right? The fact that the matter is people doesn’t like their jobs. People struggle financially.

People have to clip coupons. They have to watch their pennies and they have to make sacrifices. This is a miserable way to live. It’s a miserable way to live. It is however, it is one of your choices.

You can choose to do it. Now choice three, this is your third option. Your third option is that you can learn from someone who’s been there and done that.

You can have the advantage of receiving guidance from someone that’s made all the mistakes. You can have someone shield you from all of the painful lessons. You can walk in the path of someone that’s put in the time, the effort, the blood, the sweat and the tears.

In this option, the hard part has been done for you. Even better, you get to keep all of the profits. You get to keep all of the income for yourself and all the hard parts have been done for you.

And you still get to keep all of the rewards. So those are your three options. You know your situation much better than I do. You get to choose which one is best for you. Either you do your own research, you make mistakes.

You experience the triumphs.  You experience the pain and take a long time doing it or you keep doing what you’re doing and getting what you’re getting or either take a shortcut and do what is proven to work.

This third path is the path that I recommend. Remember, this show is not just about learning from your own mistakes but it’s about learning from other people’s mistakes as well.

I’ve made enough for everybody here. So it’s this third option that I’m going to focus on in this series from this point forward and to take this next step, you really need to be clear about your residual income number.

Spend some time with it. You know if you’re married or if you’ll be sharing this journey with another, take some time. Sit down together and come up with that number together. Then on the next episode, we’ll get right into the “how to do this”, we’ll get into the “what it is that you’re going to do” and then we’re going to get into “the why it works.”

From next episode forward, I’m going to share with you the specifics. I’m going to share with you the tactics. I’m going to share with you the strategies, stuff that you’ll be able to implement into your life immediately.

Together, we’re going to get this possibility that was created for you in this episode. You now see what’s possible, actually the previous three episodes, totally the three episodes starting at episode 66.

It’s going to take this possibility and that has been created for you. The possibility of your ideal life and living that ideal life while you’re still young enough to enjoy it. We’re going to take that possibility and transform it into a life of probability for you. If you follow the steps that I laid out before you and if you move at the speed of instruction, you’re ideal life is not just probable, it’s inevitable, got it?

Awesome, that’s it for today. God loves you and so do I. I am Matt, The Do Over Guy and I will see you on the next episode of Your Do Over.

Voice Over: Thank you for tuning in to your Do Over where the ignored, underestimated and unknown steps to producing results and making life work are revealed. Remember, knowledge is potential power.

Take action on what you learned to day. This is not your Learn Over, it’s Your Do Over. to view the resources referenced in today’s show and to retrieve a complete show transcript, visit www.TheDoOverGuy.com. Stay connected with Matt, The Do Over Guy, Theriault on Twitter @TheDoOverGuy and on Facebook at  www.facebook.com/DoOverGuru.

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