By now you have probably all seen the ING Direct commercials asking “What is your number?”
I want to ask the same question about a different number. ING wants to know what number you will need to retire, I want to know what number will cause you to quit your 9-5 job and start living your life on your terms!
When I sat down to consider my number I quickly realized that a lot of factors had to be considered. I have a good hold on our family finances so I knew exactly how much would be needed to cover our expenses each month. But the goal of securing passive income is not just to cover expenses, I want to create a life for my family that meets our needs, allows us to spend more time together, and secures a safe future. With this goal in mind, suddenly my number jumped drastically.
I figured it would be easiest to break it down into a monthly number since most expenses and income are calculated on a monthly basis. I had to consider the rising cost of supporting a growing family, the expenses of socking more money away into retirement accounts, the added expenses of being self-employed (higher insurance premiums, business expenses, taxes), and a well padded emergency fund if something were to go awry.
I also factored in the concept that the amount that I would take right away is not necessarily my end goal amount. The amount that it will take to get me to switch will be considerably less than the amount I believe I am capable of bringing in. Suffice it to say, once you figure out your passive income plan, it should be easily scalable, which should offer a significant boost in your income in the future.
After considering all those factors, I settled on my number: $5000/month. Once I reach this goal I will be safely able to separate from my current job and venture into the world on my own terms, unencumbered by a 9-5 job!
So I encourage you to find your number! How much in monthly income would it take to pull you away from your 9-5 job and start putting your priorities in the order they need to be?
Photo by: Michelle Meiklejohn
