I read about this exercise in a book (Dan Lok's F.U. Money, which you can download for free at the time of this writing), and I thought it was brilliant.
What you want to do is write down the costs of everything you want to have in your life. Maybe you want a $2,000,000 home, a sports car, semi-monthly vacations.
Whatever it is, write it down.
Now, don't be stingy with this. If you had all the money you could ever spend, what would you want?
(The key is to think about what you would TRULY want. Sometimes we think we want something but we don't. Most people really don't want a mansion if they think about it, but a 4-bedroom house with pool could be perfect.)
Write down everything and then add up the yearly costs. Then divide by 12 to get the monthly costs. This is how much money you need in order to truly live the life that you want.
Here's a snapshot of what I chose. We're a family of 4, so this would be ideal for us. You might have something completely different.
(For reference, Nick is my husband, Frankie is my son and Lia is my daughter. My kids aren't old enough to have cars yet, but I'm looking at the future...)
Since that's probably really hard to read, after it's all said and done, we could live a very nice and luxurious life with less than $1,000,000 a year.
I think you'll be surprised that you don't actually need as much money as you think you need in order to live a truly free and luxurious lifestyle.
What I did after calculating how much I need in a year, I divided that by 12 to get the monthly costs, then 4 to get the weekly costs, then 7 to get the daily costs.
They came out like this;
- Yearly = $914,200
- Monthy = $76,183
- Weekly = $19,045
- Daily = $2,720
In order to live a life of luxury, I would need to make $2720.83 per day.
I know what you're thinking “That's crazy! I can't do that!” But I disagree.
In fact, people online are doing it already! Lots of them. And you are no different than them.
In any case, this number is there to get you to focus. We'll get back to the importance of focus a little later. For now, just take a look at your number. Really take it in.
It's not that much.
It really isn't.
Open your mind. The possibilities are endless.
Work hard 24/7 with positive learning ability and dreams, wishes, wants will earn you your lifestyle.
“Always take the time to Live your life while you are earning your living.” Tom Short.
“The only limitations are up to your efforts and needs in life.” Tom Short.
“Evaluate, Investigate, Create, Activate. Now Your Life will be Great.” Tom Short.
“The more you invest to learn to earn the more you gain.” Tom Short.
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And about the being worthy - every time I talk about a friend going on vacation or buying something really nice ( or if I am) my Mom says “Must be nice!” In a negative way. I’m always thinking “yes, I’m sure it is.” But in a positive way.
People’s relationship with money is complicated for sure!
Thank you for the education on money!
- Christina
I liked your section about money being a resource and also WA being a resource too. I see too many people talking about the cost of membership rather than what they might gain if they signed up.
Personally I became a premium member the same day I signed up!
