What’s your number? Single most important step to financial freedom
Imagine you have an astronomical sum of money in the bank. Enough for you to do what you love anytime you want or simply retire tomorrow. What would you do more of?
Whether it’s early retirement that you aspire towards or simply having enough passive income coming in to allow you to pursue your dream life every day going forward, a pot of money is required. This will enable you to be financially independent and free to pursue your hobbies or spend more time with your loved ones. This post is about giving you a formula that allows you calculate how much money you need to be fiscally independent. Note that I did not say rich, I said “independent”. In other words, how much do you need in your pot to stop working and start living a more fulfilled life?
Having read The Millionaire Next Door by Thomas J. Stanley and William D. Dankolast year, I am happy to share with you a great calculation to see where you are in terms of your real wealth relative to your age and income. Stanley named this the “Wealth Equation” and defining an index called the “Wealth Index” (WX) which is simply your net worth divided by the expected wealth for your age and income.
To find out how wealthy you are, please follow this link http://www.hughcalc.org/wealth.cgi and enter the three variables you are asked for. If you want to find out your net worth or draft a plan for your financial success please get in touch.
To Your Financial Success,