Wealth Building Masterclass Part 5: The Freedom Number – Episode 866

The foundation of financial freedom is The Freedom Number. In part 5 of the Wealth Building Masterclass, you’re going to learn more about how to calculate your Freedom Number. Your Freedom Number is the amount you need in order to be financially free, and you can find it by using a simple equation we made. All you have to do is plug in a few of your financial numbers.

This will help you figure out how many rental properties you need in order to replace your income and retire comfortably. Please join me for part 5 of the Wealth Building Masterclass to learn more about finding your Freedom Number!

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Before you calculate your Freedom Number, you need to do a little homework. For example, what are your monthly expenses? You’ll need to take a close look at every expense you have each month. Write down the big payments, like your mortgage, and even small ones like a music streaming subscription. The total represents your current survival number, or the minimum amount you need to cover your monthly expenses. If you pad that number by 10% to allow for unexpected costs, travel, and stuff like that, then you’ll have your Freedom Number.

Let’s see the calculation in action with some real numbers. I’m pulling this directly from my free downloadable Freedom Number Cheat Sheet. You can download a copy at morrisinvest.com/freedom

Let’s say your survival number is $5,000 each month. When you pad that by 10%, or $500, you get $5,500. That $5,500 is your Freedom Number.

Whatever number you come up with, write it down. Keep it in view to remind yourself of what you’re working toward. One of our clients made a huge collage with balloons to keep herself motivated. Just keep it top of mind and sight.

Now when you’re working toward using rental income to reach your Freedom Number, I want to remind you about our discussion earlier on leverage. Make sure you’re looking at the long-term results of your financing deals. That way you can decrease the overall number of properties you need to purchase in order to reach your number.

Once your loans are paid off using the rent you’re getting, you’ll be able to pocket that money as well and add it to your Freedom Number. I LOVE the power of leveraging your money!

Don’t forget to download the cheat sheet, and if you’re comfortable, I’d love to hear what your Freedom Number is in the comments below.

In the final part of this Masterclass, we’re going to talk about building out your personalized path to financial freedom. I’ll see you there in the next video.

Episode Resources

Book a Call with Our Team
TommyJohn.com/investing ← Get 20% off your first order!
Freedom Cheat Sheet ← Free download!
Part 1: The Key to Wealth
Part 2: Goal Setting Workshop
Part 3: Your Personal Financial Checklist
Part 4: The Power of Working with a Team 
Download your FREE 90-Day Bootcamp!
Subscribe to Investing in Real Estate on iTunes
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
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