OK, next we need to determine the costs for the Definitions of Lifestyle that we came to from Step 1.

We need to define the monthly cost for each item, including all the associated expenses; taxes, utilities, maintenance, insurance etc. Don't forget to include life overheads such as health insurance, food etc.

Nice car : $750

House : $2,000

Travel : $1,000

---

Lifestyle Cost : $3,750 / month

Next, determine your lifestyle monthly allowances and unknowns. This is for stuff like clothes, toys for the children, gadgets, entertainment etc. Add this to your Lifestyle Cost to determine your Gross Living Costs.

Let's say these allowances come to $1,000

Gross Living Cost =

Lifestyle Cost : $3,750 /month

Plus

Allowances : $1,000 / month

---

Gross Living Cost : $4,750 / month

Next, determine your Nett Living Cost by dividing your Gross Living Cost by 0.6

Nett Living Cost =

$4,750 / 0.6

---

Nett Living Cost : $7,917 / month

Now move to Step 3



Join the Discussion
Write something…
Recent messages
ECV82 Premium Plus
Well done!
Reply
BorisRoman Premium Plus
Great tutorial! You are amazing at it - please, keep it up!
Reply
Neil Little Premium
It is fully achievable with a lot of hard work and careful planning.
Reply
MegaWealthy9 Premium
Very concrete advice and tips! Thanks a lot, Dave! :-)

Nathalie
Reply
Babou3 Premium
Thanks for your lesson, it's really interesting.

Ingrid
Reply
Top