EP283: How to Find Your Freedom Number 2.0

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The Freedom Cheat Sheet is a PDF I created a few years ago when I started on my journey toward financial freedom. This document helped us set a goal, and in turn totally change our financial situation. We've been sharing the Freedom Cheat Sheet ever since. 

Over the past few months, Natali and I sat down to revisit and fine-tune the Freedom Cheat Sheet. On today’s show, we’ll walk you through how to calculate your unique Freedom Number. We’ll talk about the power of performing assets, how to understand your expenses, and much more. Don’t miss this episode of Investing in Real Estate!

If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.

More About This Show
The Freedom Cheat Sheet was born out of my own frustration. It seemed that nearly every dime went toward paying off liabilities, and we could never quite save any money. Despite my high-paying broadcasting career, we struggled to pay our mortgage payment.

I knew something had to change. At this point, we already owned two rental properties. So we sat down and calculated exactly how many rental properties we would need to cover our expenses and be financially free.

Here’s how it works:
Know your numbers. Open up your bank statements and take a look over the last six months of your expenses. Account for all of your bills and payments, entertainment costs, and groceries. Try to be as accurate as possible, and come up with a monthly average. Then you’re going to pad that number by 10%. The idea here is that if only your basic needs are met, you’re not technically free. You want to be able to take vacations, or not worry if an unexpected expense occurs.

Next you’re going to determine how many rental properties you would need to reach that number. An average rental property in America’s best rental markets rents for $700 per month. However, you as the investor don’t get to keep the full $700. We use a conservative formula that sets aside 40% for expenses, repairs, and vacancies. That leaves you with $420 per rental property. Then you simply divide the number you calculated earlier by $420 to determine how many rental properties it would take for you to be financially free.

On today’s show, Natali and I are sharing everything you need to know about finding your Freedom Number. We’re sharing tips, tricks, and apps you can use to get your finances under control, discussing ROI, and the false idea of job security. Please join us to learn more about creating financial freedom!

On this episode you’ll learn: 

  • What is the importance of focusing on performing assets?
  • Can you reach financial freedom through stocks or mutual funds?
  • Why do we use a conservative ROI formula? 
  • What is the difference between a survival number and a Freedom Number?
  • And much more!

Episode Resources
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 My Freedom Cheat Sheet was born out of frustration. It seemed that nearly every dime went toward paying off liabilities, and we could never quite save any money. Despite my high-paying broadcasting career, we struggled to pay our mortgage payment. I knew something had to change. We calculated exactly how many rental properties we would need to cover our expenses and be financially free. Today's episode talks about that and more, plus how you can calculate your own Freedom Number.