How do you use your business to get to Financial Freedom? As a Business Owner, you’re likely paying everyone else first, using extra funds to expand services and thinking about your future in terms of business success, not your own financial success. Financial Freedom, which might be the reason you started your own business in the first place, probably seems far in the future and impossible. But you’re wrong! Financial Freedom is attainable by everyone — even Business Owners — and you can use your business to get there. I’m guessing your next question is “As a Business Owner, how do I buy my time back so I actually achieve real Financial Freedom?”
Building Freedom Into Your Business
To answer that question, we’ll look at ways to build Freedom into your business so you generate enough profit to achieve Financial Freedom in your desired timeframe.
To get to that point, you’ll take three steps.
Step #1: Figure Out Your Freedom Number
What kind of life do you want to design for yourself? Does Future You have mortgage payments? Will Future You want to travel? Asking yourself questions like these help you visualize a number in your head–whether it’s $6,000 or $10,000 a month. Write that down, because this is your Freedom Number!
Step #2: Visualize Your Timeframe
When you think about when you’ll never need to work again, is it 25 years from now? Or much sooner? If you’d like to achieve Financial Freedom in 10 years, write that down—even if that seems ambitious right now.
Step #3: Calculate Your Monthly Contribution
Now that you know how much income you want per month when you achieve Financial Freedom and the desired timeframe in which you’d like to start making that monthly income, you’re ready to calculate how much you need to contribute to your Freedom Generator every month.
Deciding Your Freedom Number
So let’s say your Freedom Number is $6,000 per month. How much will you need to contribute to your Freedom Generator so you can reach Financial Freedom in 10 years?
Here’s where Cash Flow Cure comes in. The Cash Flow Cure spreadsheet takes your $6000 goal and, using the principles of compound interest and a conservative return rate on your investments, calculates how much you need to contribute monthly to reach your goal in 10 years. This is the formula you need to figure out how to build Freedom into your business.
These calculations help you figure out timeframes, set realistic goals and adjust as needed. For instance, if you’d like to reach your Freedom Number more quickly, play around with the spreadsheet to explore different scenarios. You’ll take the guesswork and stress out of planning for your future.
Crystallizing your Freedom Number is the first step. When you know this number, you’re no longer making a vague guess at how much income you’ll need when you’re ready to buy your time back.
What’s The Next Step?
After finding your Freedom Number, look inside your business and determine how much business you need to generate to get there. You may need to rethink your priorities and where you’re putting your effort. Are you taking the right steps to support your business and your future self?
Business Owners are notorious for paying themselves last. They’re so busy investing in building their business, they don’t set aside enough income for themselves.
image credit: Bigstock/ra2studio
Makaylah Rogers is the co-founder of MindShift.money. She is a Thought Leader for her generation, teaching people how to rewrite their “money rules.” With an extensive background in wealth building and personal development, Makaylah’s path has taken her into executive roles in various fields including launching startups, real estate sales and motivational keynote speaking.