A Step-by-Step Guide to Achieving Financial Freedom
Imagine waking up every morning knowing that you no longer have to rush off to a job that you dread—a job where you have to ask for permission to take time off or approval to go on a needed vacation as a grown man or woman. Because that's really what you're doing when you're submitting that form for vacation approval—you're asking for permission from your boss.
Instead, I want you to envision a situation where you have the freedom to spend time with your family, pursue your passions, and live the life of your dreams. This isn't a dream—it's a reality. And with what I'm going to share in this video, you can achieve it in just 90 days if you follow this strategic plan.
Welcome back and thank you so much for your loyalty. We have a lot to cover, so let's jump in. Before I get into it, let me just declare that there's absolutely nothing wrong with having a 9-to-5 job. Sometimes, we have to do what we have to until we can do what we want. But what we have to accept is that most 9-to-5 jobs will not allow you to achieve financial freedom in your lifetime. That's because you're trading time for money, and to make the kind of money that's required to achieve financial freedom, you need to be able to get your money to work for you. You need to figure out ways to be earning 24 hours per day, not just within the 9-to-5 time frame.
Now, this plan took me about 90 days, and it can take you 90 days as well. But it can also take you 180 days, 365 days, or even three years—it all depends on how aggressive and strategic you are. Because it's not going to be easy; it's going to require some sacrifices. But considering what we're working towards, I think it's worth it. It definitely was worth it for me.
what I'm about to share with you will not be a walk in the park, I will share the actual strategy that I used. As long as you have the mindset and know that you're going to make short-term sacrifices for long-term gains, you'll be able to do this as well. I've broken this down into a few steps, so let's get started with step one.
Step 1: Determine Your Survival Number
The first step to quitting your job is to understand your financial needs. Most people come up with an arbitrary number and say, "Oh, I need $8,000 a month," or "I need $10,000 a month to keep living." I do not recommend that. You need to find your break-even point, which is the minimum amount of money you'll need on a monthly basis to cover your basic and necessary expenses. This is where some sacrifice is required, but remember, you'll be able to create excess later on after you've fired your boss and all these income streams that I'm about to share with you are bringing in the kind of money you never thought would be possible.
To determine your survival cost, you can use a budget. Your monthly expenses will obviously depend on where you live, but I'll give you some examples here that you can use as a guide. First on the list is housing—this includes your mortgage, rent, and all utilities. $1,500 to $2,500 per month is within reason for most of you , because the majority of you live in the US, Canada, and the UK. In Jamaica, it can be less; just work the math based on your reality. In Africa and India, it's going to be less as well.
- Housing (Mortgage/Rent/Utilities) : $1,500 - $2,500
- Transportation (Car Payment, Petrol, Insurance, Maintenance): $800
- Food (Groceries and Dining Out): $700
- Healthcare (Insurance Premiums, Doctor's Visits, Medication): $600
- Entertainment (Movies, Concerts, Sports Events): $200
- Kids' Education and Expenses: $1,500
- Personal Care (Hair, Nails, Haircut): $200
- Clothing and Accessories: $250
- Travel (Out of Town, Hotel Stays): $200
- Pets (Vet Visits): $50
This totals anywhere from $6,000 to $7,000 a month. For simplicity, let's assume the median cost for survival is $6,500 per month. This is your gross survival number, meaning what you need to be financially independent. Now, let's drill down to find your net survival number—this is step two.
Step 2: Reduce Your Expenses
Reducing your expenses in the short term is crucial to achieving financial freedom in the long term. But remember, this is temporary. I never recommend reducing expenses as a long-term strategy for financial independence or wealth—it just doesn't work. Let's say you lower your rental cost for your home, moving from a $2,500 rent to $2,000, saving $500. If you get laid off and need to reduce your rent further, it can affect your mental state and peace of mind, making it hard to excel and achieve your goals.
Cutting back on expenses is a short-term solution and a part of the sacrifice required to fire your boss in 90 days. An app like Rocket Money can help you track spending, identify subscriptions to cancel, and improve cash flow. Aim to cut back as much as possible, removing every want and keeping only the needs, even if it results in temporary discomfort.
Some expenses I cut back on were my mortgage—I negotiated a lower interest rate, saving about $600 a month. I invested in solar to reduce electricity costs, saving about $730 a month. I stayed home more to save on petrol and didn't eat out, saving on food and entertainment. I bought groceries in bulk from wholesalers like Costco or Sam's Club. By cutting back, I saved $2,000 each month, bringing our survival cost down to $4,500.
Step 3: Create an Emergency Fund
With your reduced expenses, establish an emergency fund to keep you afloat while you figure things out. Ensure you have at least six months of living expenses before quitting your job. With a survival number of $4,500, six months is $27,000. While saving $2,000 a month within your 90 days, you’ll accumulate about $6,000 but still need $21,000 more.
You can tap into savings, extend your quit time from 90 to 365 days, sell something valuable, or take on an online part-time job temporarily. With your emergency fund, you’ll have nine months to figure things out.
Step 4: Activate Additional Streams of Income
While still at your 9-to-5 job, activate additional streams of income. First, submit a vacation request for 2-3 weeks to double down on your goals with no distractions. Focus on creating recurring and passive income streams. Here are the main buckets I recommend:
1.Content Creation:
- Identify a lucrative YouTube niche in the educational area.
- Create a YouTube channel and commit to posting three videos per week.
- Use platforms like Gling for easy video editing.
- During vacation, record 1-2 videos a day and edit them.
- Stay ahead by recording videos on weekends after your vacation.
- Aim for 10,000 views per day and $10 per 1,000 views, targeting $3,000 a month.
2.Blogging:
- Start a blog on platforms like Blogger.com and use AI for writing.
- Post three blogs per week, aiming for $1,000 a month in Google AdSense.
3. Membership Platform:
- Build a membership platform on Patreon.
- Use YouTube, blogs, and social media to promote it.
- Build
a membership tier starting at $5, aiming for 100 members in 90 days to earn $500.
4. Affiliate Marketing:
- Recommend products and services you love using affiliate marketing.
- Promote them on your YouTube channel, blogs, and membership platform, aiming for $1,000 in 90 days.
5. Digital Products:
- Create digital products such as eBooks and courses.
- Promote on various platforms, targeting $1,000 in 90 days.
Step 5: Monetize Your Knowledge
Create a plan to monetize your knowledge and expertise. Offer coaching sessions, workshops, or consulting services in your area of expertise. Aim for $1,000 in earnings within the first 90 days.
Step 6: Execute and Adjust
Stick to your plan diligently, track progress, and adjust strategies as needed. With perseverance, your additional income streams will grow, helping you replace your 9-to-5 income.
Quitting your job and achieving financial freedom in 90 days is challenging, but with strategic planning and dedication, it’s possible. Start with determining your survival number, reduce expenses, create an emergency fund, activate additional income streams, and monetize your knowledge. Stay focused and persistent, and you’ll reach your goal. Good luck!
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