Achieving Financial Freedom Begins with Knowing These 6 Crucial Numbers – #TomFerryShow

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Did you go DEEP ENOUGH when you created your 2020 business plan?

Here’s an easy way to know…

If all goes according to plan, will you achieve financial security and be debt free by the end of 2020?

If you said no, let’s get you there…

On today’s #TomFerryShow, I’m sharing 6 crucial numbers you should know to help you gain financial freedom and eliminate your debts in 2020!

 

No. 1: Know Your Outside Income

What income do you generate beyond your real estate commissions? Does your spouse earn money? Do you have a trust fund or pension? Do you have passive income from rental properties? Do you have a side gig?

Whatever your answers are, create a list of any “outside income” you earn.

 

No. 2: What Are Your Personal Household Costs?

Do you ever stop and really analyze how much money you spend on a monthly basis? It’s something most people would rather ignore, but it’s crucial to understand if you want to become wealthy. I’d advise you to schedule some time to review all your monthly bills, your housing costs, your groceries, your discretionary spending, etc.

The more awareness of this number you have, the better positioned you are to build wealth.

 

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No. 3: What Does It Cost You to Run Your Business?

Add up all the essentials – insurance, board dues, website, business cards, marketing costs, car, cell phone, etc. ­– and then factor in the more advanced items like your assistant’s salary, buying leads, and so on.

How much did you spend on your business in 2019?

How much have you slated to spend on your business in 2020?

 

No. 4: What’s Your Pre-Tax Savings Goal for 2020?

How much will you contribute to your SEP or IRA in 2020 to lessen your income tax burden?

 

No. 5: What’s Your Debt Reduction Goal for 2020?

I’d love to see you pay off all your “stupid debt” in 2020.

I’m not talking about your mortgage here. I am talking about the credit cards you’ve been making minimum payments on, lines of credit, money you took out of your house, etc.

If you’re not eliminating your debts, you’re still a long way from getting wealthy. Make this a priority if you’re facing a wall of debt… And the bigger goal you set to eliminate debts, the more you’ll be driven to make your phone calls and take action to dominate your business in 2020.

 

No. 6: What’s Your Savings Goal for 2020?

Would you sleep better at night if you had six months’ worth of household expenses in your savings? Do you want to make some investments in 2020?

I want you to stop working check-to-check and start building wealth, starting now!

 

Get Out Your Calculator

The next step in this process is to add up numbers 2 through 6 to determine your total expenses for 2020. This is your break-even point, although keep in mind we haven’t addressed paying your income taxes yet.

Now what about that “outside income” I asked you to start with?

Well, I would encourage you to set a big goal so that you accept full responsibility for all your household and business expenses, so any of that outside income could go direct to savings.

 

Here’s What I Know…

This exercise can be alarming, and that’s a good thing.

When you bring to the forefront exactly how much income you need to surpass all your expenses and savings goals, it serves as a real wake-up call to set big production goals for the year – and ALIGN YOUR BEHAVIORS with those goals!

The more you can remind yourself of these figures, the more energy you’re naturally going to bring to achieving them.

 

What challenges did this exercise present? What feedback or questions do you have? Let me know in the comments below or text me at 949-216-5466!



 

 

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