9 - Know Your Financial Freedom Number and playing with scenarios

We are all very different, some of us dream of a big house and fancy car, others dream of freedom of time to spend travelling the world or with our family. 

Imagine what you would do differently in your life today if you never needed to worry about making money ever again. If your assets paid you everything you need to maintain your lifestyle. 

Last week I took you through how to identify Your Number - one of the most important things you will need to know as you start building your dream life. This number has the power to influence what you do and how you do it. If you are after a career change, then this will be a fundamental factor. Want a new house or car? Then review the impact that it has on your number. 

For many people achieving such a big number feels unrealistic, or too far away. You can absolutely reach your objectives if you set your mind to it - that is why I build clear Life Strategies with my clients, so they know exactly where they are going and the next steps to get there. 

A great exercise is to play around with the numbers and create different scenarios:

1 - How much would I need to live my life as it is today (covered in my last blog post number 8)?

2 - How much do I need if I reduce my spending today (become financially free sooner)?

3 - How much would my dream life cost (for example owning my dream car and house, a holiday home…)?

For goals 2 and 3 (below and above your current lifestyle) you can have some fun. Imagine if you reduced your outgoings, got rid of the fancy lease car, and didn’t go on holiday so much, what would your number be now? How much sooner could you achieve this number? In this scenario you would get freedom of time to top up your pot any way you choose! This could be the first goal that you set yourself. 

How different would your life be, and would it be worth it to you?

Flip it the other way and imagine how much your dream life would cost - you would probably need to do a lot more to get you here but when you are past the first goal of covering your basic outgoings you can set yourself challenges to invest as much as you can, in any way you choose. 

Why don’t you have a go at calculating your number using the calculations in my last blog? Take a look at the other two scenarios and start to think of ways you can get there quicker (I will cover this in another post soon!). These three scenarios can be added to your Life Strategy, your personal plan that gives you purpose, focus and accountability, as milestones for you to reach.

Many people work far longer and harder than they need to because they haven’t done the calculations, or sought advice. And other people retire without enough money to sustain the lifestyle they want. Don't make those mistakes, get clarity today. I would also recommend seeking the advice of a qualified financial advisor. 

If you want further support then please reach out at [email protected] or click below to book free discovery call with me today. 

Always with love, 

Elsa x