If you ever want to be absolutely free, you need to develop multiple income streams so that when the inevitable change happens, you’ll be covered. I first recommend you start with the end in mind. What makes you happy? From this question, now you can derive how much money you honestly think will make you happy.
Once you’ve digged deep to answer these two important questions, you can then start building your income goals.
What makes me happy?
Family, friends, experiences, travel, freedom to say and do what I want, sports, relationships, the online community, hot tubbing with drinks, food and enough money to not have to worry. Good old nostalgia really makes me happy too.
What makes me unhappy?
Racists, bigots, haters, lying politicians, bad bosses, cronyism, inequality, people who say one thing and do another, thieves, and zealots who impose their will on others.
How much money do I need to achieve what makes me happy?
Anywhere from $3,000 to $15,000 a month after taxes to account for a single life to one that provides for a family of four.
I really don’t need much to be happy if I’m supporting only myself and have no debt. I was super happy living on nothing while in school, so $3,000 a month after tax would be fine.
$15,000 a month after tax is a large nut that equates to about $235,000 in gross income a year, the income level where I think maximum happiness is attained. With $15,000 a month, I can afford private school tuition for two if necessary, go travel 8 weeks a year, get huge and eat whatever I want, have a paid off car, live in a comfortable home practically anywhere in the world, and continuously save for a rainy day. Furthermore, $15,000 a month after tax can be used to help my parents in case they need financial help for whatever reason.
Think about an after tax monthly income number you’d like to achieve and let me know. For now, it’s time to open up the kimono and see what can be produced after over a decade of saving and investing. This is a long post, so make sure you go to the bathroom first!