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1. COMMIT TO TAKING AN HOUR PER WEEK AND SEVERAL HOURS ONCE PER MONTH TO EVALUATE, ORGANIZE, AND RECOMMIT TO YOUR PLAN.
You won't get to financial freedom on accident.
You must make a plan and take time to come back and see how you are doing and see where you need to change.
You won't get to financial freedom on accident.
You must make a plan and take time to come back and see how you are doing and see where you need to change.
2. EVALUATE YOUR CURRENT SITUATION.
That plan starts with seeing where you are now.
What are your sources of income?
Expenses?
Debts?
This requires honesty and may sting to really dig into.
Are you where you want to be?
If not, how can you change that?
That plan starts with seeing where you are now.
What are your sources of income?
Expenses?
Debts?
This requires honesty and may sting to really dig into.
Are you where you want to be?
If not, how can you change that?
3. CALCULATE YOUR NET WORTH
It is not so important where you are, but calculating this will help you figure out if you are improving month to month heading forward.
Simply take your assets and subtract your liabilities.
It is not so important where you are, but calculating this will help you figure out if you are improving month to month heading forward.
Simply take your assets and subtract your liabilities.
4. CALCULATE YOUR MONTHLY CASH FLOW
Take your paycheck, rental income, blog, whatever sources of income you have
Subtract money going out(mortgage, car payment, utilities,etc)
And you are left with the amount of money flowing in (or out)
Try to raise these 2 #'s every month
Take your paycheck, rental income, blog, whatever sources of income you have
Subtract money going out(mortgage, car payment, utilities,etc)
And you are left with the amount of money flowing in (or out)
Try to raise these 2 #'s every month
5. START A NEW PLAN
You have the truth on your current situation.
Figure out where you want to be.
Now close the gap.
Where can you save money?
Where can you make more money?
How will your dream financial situation add magic to your life?
You have the truth on your current situation.
Figure out where you want to be.
Now close the gap.
Where can you save money?
Where can you make more money?
How will your dream financial situation add magic to your life?
6. LIVE WITHIN YOUR MEANS
This is the biggest step in my opinion.
If you are not living within your means (that number in Step 4 is negative)
You have no hope of ever gaining financial freedom(if you continue on that path).
This is the biggest step in my opinion.
If you are not living within your means (that number in Step 4 is negative)
You have no hope of ever gaining financial freedom(if you continue on that path).
7. LIVE ON 70%
This is a further iteration of step 6.
@DrTim_MD recommends keeping your cost of living at 70% so you can use the other 30% to give:
-10% to charity (giving creates an abundant life)
-10% to saving/self investing
-10% to paying down debt/ investing
This is a further iteration of step 6.
@DrTim_MD recommends keeping your cost of living at 70% so you can use the other 30% to give:
-10% to charity (giving creates an abundant life)
-10% to saving/self investing
-10% to paying down debt/ investing
8. CALCULATE YOUR NUMBER
How much money do you need to have so that the interest off it could support your lifestyle?
Figure your monthly and yearly expenses.
You should still have it from Step 2
For this step we will assume you can return 8% on your money.
How much money do you need to have so that the interest off it could support your lifestyle?
Figure your monthly and yearly expenses.
You should still have it from Step 2
For this step we will assume you can return 8% on your money.
Example: Monthly living expenses are $3,000
Yearly expenses would be $36,000(3,000x12months)
$36,000/.08
=$450,000
$450,000 invested into the stock market could net you the $36,000 to cover your lifestyle.
Finding this number gives you what to shoot for now.
Yearly expenses would be $36,000(3,000x12months)
$36,000/.08
=$450,000
$450,000 invested into the stock market could net you the $36,000 to cover your lifestyle.
Finding this number gives you what to shoot for now.
9. HAVE YOUR MONTHLY INCOME FROM OTHER RESOURCES EXCEED YOUR EXPENSES
Now you get to work trying to create other income steams to cover that $3,000 per month or whatever you number is.
This is freedom. This is peace of mind.
Now you get to work trying to create other income steams to cover that $3,000 per month or whatever you number is.
This is freedom. This is peace of mind.
10. DO NOT QUIT YOUR PRIMARY JOB.
Dr. Tim does not recommend aiming to quit your job for a while unless you hate it because it is more than likely your main source of income. Keep it until your passive income far exceeds your expenses.
Dr. Tim does not recommend aiming to quit your job for a while unless you hate it because it is more than likely your main source of income. Keep it until your passive income far exceeds your expenses.
That's it!
A proven, step by step guide to attain financial freedom.
I got these principles from @DrTim_MD 's new book.
If you would like an easy to read, useful, and practical guide to elevate in all areas of life I would highly recommend it. https://www.amazon.com/Living-Every-Minute-Creating-Spectacular-ebook/dp/B08G3QDFFG
A proven, step by step guide to attain financial freedom.
I got these principles from @DrTim_MD 's new book.
If you would like an easy to read, useful, and practical guide to elevate in all areas of life I would highly recommend it. https://www.amazon.com/Living-Every-Minute-Creating-Spectacular-ebook/dp/B08G3QDFFG
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