If you’ve made the decision to become wealthy, at some point you either have or will need to do the math. What will it take to get there? I want to suggest we base the math around you owning your potential rather than just being a millionaire. Why? Because millionaire IS the new middle class. I am willing to wager that if you lived life the way you want to live it, you will need more than a million dollars. I want to teach you the same thing I teach my clients: How to do the math.
What is your standard of living today? What do you live on now? If you’re average, it is probably around $5,000 per month. Ask yourself, “does this amount allow me to treat money like oxygen?” What this means is that you earn money and spend money as needed without thinking about it. It is as simple as breathing. If the answer isn’t yes, you need to increase your income target to an amount that really does allow you to treat money like oxygen. Speaking from personal experience, my lifestyle really changed at $250,000 per year. I was able to eat organic, live in my ideal home, drive my ideal vehicle, give generously, go out on dates with my wife whenever I felt like it, etc. So lets say you need $20,000 per month to truly treat money like oxygen.
Calculate taxes. There are two types of taxes you will pay. One of them you recognize. The other, you do not. Which is the problem. The first tax is income tax to the government. Let’s assume that is 25% right off the top. The second tax is to your wealth. That number should be 40% of your gross income. In other words, you need to be saving 40% of your gross income. This means that 65% is going to go towards government taxes and wealth taxes. So the real number you need per month is $57,143 per month so you can pay your 65% in taxes and still have $20,000 per month left over to live on.
The 12% rule. I want you to learn how to earn 12% on your investments. This not the “12% growth stock mutual fund” b.s. from our favorite friendly redneck radio show host. You will do this with real estate. Period. If you want to generate $57,143 per month at a 12% annual return, then you will need to have $5,714,285 in equity earning 12%. The best part? The 12% is just interest. You aren’t even touching the $5,714,285. It will be there growing for your kids and grandkids.
So that is the math! I teach my clients this every day. It would not be much help to do that math without covering how to get there. Right? That is why I provide Wealth Creation Coaching to my clients. This coaching will give you one on one coaching, group coaching, and a written plan showing you where you are now, where you want to be, and the exact steps and tools you will need to get there. Click here to learn more.
Own Your Potential,
Jerry Fetta believes everyone has the God-given right to own their potential. Most of us don’t because we spend 40 hours per week serving the 40 year to life sentence, trading our precious time for worthless paper called money.
We live on an economic planet and time and money do need to be exchanged. But it doesn’t need to be your time or your money. Jerry teaches his clients to secure income producing assets that make the time and money exchange for you so you can buy your freedom back and live a life of abundance and prosperity. To get there we must know how to make money, how to keep it, and how to multiply it.
Jerry provides coaching, education, accountability, and community to help you build wealth. Join the Wealth DynamX coaching program, get educated on Wealth DynamX University, and begin networking with the Wealth DynamX Mastermind Group today.