Episode Twenty-Two: Your Blueprint to Total Financial Freedom

Residual Income - Wealth Strategies - Financial Freedom With Murray Miller

Your personal blueprint to total financial freedom. The Full Monty, totally EXPOSED edition!

In this podcast, I am giving you the formula used by virtually everyone I have ever known that are financially free. It’s worked for me and it is going to work for you! So that being said let’s dive right in.

Today, we’re going to discuss a plan for you to reach your “Freedom Lifestyle” AKA Early Retirement, in as little as 7-10 years, even if you’re starting from $0.00. This may sound a little extreme for some people but it is possible… however, spoiler alert, you have to be all in!

The first step is all about what we are going to call your “Freedom Figure” this is the target you’ll want to reach in order to have full control of your financial life.

Your Freedom Figure is a very individual thing and it all depends on how much you want to pay yourself each year when you stop working your day to day.

Your Freedom Figure is one of the targets you want to reach to have full control of your financial life. One way that people use to figure it is called the “Times 25” rule.

So first let’s put some numbers to this strategy. Let’s use the example of building a residual income of $1,000 weekly. For easy math purposes

• Let’s round it to $50,000/year
• $50,000 times 25 = $1.25 million

The idea is that you’ll be able to withdraw 4% of this number per year (which has been a standard in the traditional financial planning industry) without ever running out of money and 4% of $1.25 million is $50,000.

So, $1.25 million dollars, how are you going to get to that?

There are 5 stages to building towards your Freedom Lifestyle.

Stage One: All bad debt needs to be paid off as soon as possible. This is the focus of phase one. It’s almost impossible to invest and build wealth when being weighed down by bad debt!

Stage Two: Putting aside an emergency fund. This is essential because when you start investing without an emergency fund you might find a few months down the line you get into a tight spot with an unexpected expense and no cash to pay for it.

Stage Three: Building a great credit score! A credit score is a bit like your resume, it follows you around in life and is regularly updated. The difference is your credit score helps lenders decide whether you are a reliable borrower.

Stage Four: Reducing your tax liability, which is the sneakiest hidden costs of all the expenses! That being said taxes can sting the most and take the biggest bite out of your money.

For me, I simply have begun converting those traditional retirement assets into tax free investments prior to taking the money out for income. This is also something that is not uncommon. I have helped a lot of my personal clients with this.

By the way I also discussed this on Episode 17 which I titled “Financial Strategies of the Super Wealthy” and if you haven’t heard that episode and you are interested in this strategy I would suggest you go and listen to that one.

Or if you prefer learning more by asking questions you can call or text me at 508-905-5561.

Stage Five: Begin creating passive or residual income from your side hustles. Why you want passive income streams is so your money can make more money while you sleep. It’s the complete opposite of active income which is money that you basically sell your time for.

Most people won’t tell you this but I’m going to be frank, this step-by-step strategy to reach your Freedom Figure will be hard to achieve if you don’t start a profit generating side hustle. You can download my FREE e-book to explore the 8 Sources of Residual Income.

And yes! It’s still possible with a 9-5 job or career. Most people need a side hustle to kickstart that wealth building. When my daughter Chelsea was on the show last week she said that most millennials have gone from considering a side hustle to having one. It as a normal as a part-time job for extra money however it’s usually something you are excited about and is building a future. You’ve got this!

The post Episode Twenty-Two: Your Blueprint to Total Financial Freedom first appeared on The Family Business.

The post Episode Twenty-Two: Your Blueprint to Total Financial Freedom appeared first on The Family Business.