Start the Journey to Financial Independence With The Right Tools

Creating a managing a budget is the number one key to starting the financial independence journey.  Knowing the specifics around how much money you have to spend and where its going will enable you to adjust areas that of overspending.

What is a Budget? Budgeting Terms and Tips

A budget is an estimation of revenue and expenses over a specified future period of time; it is compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. At companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties.

Outline Your Budget

Our budget template is very straight forward and simple to complete.  I’ll walk you through the setup step by step.

  1. Start by adding your total income.

Include the income from all people contributing to your household.  Split out the additional types of income into other categories like real estate or other business income.  In this section include the total income for business-related areas,  you can include the expenses in another section in the sheet.

2. Add the necessary expenses.

Necessary expenses including payroll taxes, rent or mortgage, property taxes, charitable giving, utilities.  All of these are necessary for most people to maintain their home and standard living expenses.

3.  Add the discretionary expenses.

Discretionary expenses including car, gas, clothes, internet, restaurants.  These are all things that can fluctuate greatly from month to month.  Stepping back, most of these aren’t needed to live a life of freedom.  These are discretionary and should be looked at very closely.

4. Add investment spending/saving.

Since investment contributions come out of the overall income budget they are considered “spending” for the purposes of cash management.  Enter all of the investment contributions for brokerage accounts, 401k, 529, IRA.

Outline Your Savings

I’ve been using a number of different savings calculators, some are helpful, others are way too confusing.  Enter the number of years you have left before planned retirement along with your current savings balance.  The expected annual interest rate will be somewhere between 4%-8%.  On average, the market will return 7%-8% per year.

Review Years Until Financial Independence

After completing the savings calculator, you can start looking at how many years until financial independence is a reality.  Based on current or projected savings and percent return, you’ll be able to plan based on a specific withdrawal rate.  4% is the standard for withdrawal, this allows your money to continue to grow without depleting the principal.

Launch your Financial Independence Journey with the Real Estate Investment Toolkit

Making the decision to invest in real estate changed my life forever.  Ever since I was in high school, I was always intrigued by the opportunity that real estate could create for me.

Back in 2009, the real estate market had hit rock bottom.  Multi-unit properties were hitting the market for 25% of what they were sold for in 2006.  Either everyone was in trouble or this was a once in a lifetime buying opportunity.  I choose to jump in a take the position that this couldn’t last forever – so I went for it.

The first financial models that I built were very simple and didn’t provide a long-term view of my business.  Since then, I’ve been iterating on my model numerous times per year.  I love where it is now – the model shows me cash flow and property value projected out ten years.  The long-term view is super important for me because it’s easy to lose sight of the ultimate prize…more cash flow.

My real estate investment toolkit will give you everything you need to launch your first real estate business.


What is Investment Real Estate?

Investment real estate is real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate.




How to Launch a Side Hustle and Get out of Debt

A side hustle is not a part-time job. A side hustle is not the gig economy. It is an asset that works for you.  Specifically, an asset that works for you means that it can create freedom in more areas than just finances.  Brainstorm work opportunities that you’ve been dreaming about – don’t let perceived roadblocks stop you.

Motivation to push forward with a side hustle is the key to creating momentum.  Forget pyramid schemes or other get rich quick programs.  Above all, you have the ability to generate additional income by leveraging your existing skills.

You don’t need to risk everything to create a lucrative side hustle.  Keep your day job and use extra hours in the day to set up strategic systems that allow for automation to start generating additional income.  Most importantly, move your thought process from focusing on an hourly wage to opportunities that can generate passive income.  Everything from launching a niche blog, purchasing a rental property, or starting a digital marketing agency.

Combining a consistent side hustle with your day job creates freedom in your life and finances.

Finally, when you launch a successful side hustle the increased confidence and flexibility will give you the ability to think bigger about your life.  Living in freedom allows for an incredible amount of unique opportunities.  You’ll have the ability to put yourself in the path of growth – find people and work that creates space.

Find your motivation.

  • Define the reasons you want to launch your side hustle.
  • Write out what you want to accomplish and how to get there.
  • Define measurable goals that allow you to stretch yourself.

Find your path.

  • Once you’ve defined your side hustle start moving forward.
  • Read articles from experts and learn what others have done.
  • Talk with mentors and friends about your plans.  Have them keep you accountable as you move forward.

Find your network.

  • Network with others that have similar interests.  If you choose to start investing in real estate, start networking with other investors in your city.
  • Learn from others how they started, what tools they used, and roadblocks that caused pain.

Put your plan together to pay down debt.

  • One of the most significant drivers for your side hustle could be paying down debt that has sitting around for years.  Use the additional funds to focus on your highest interest accounts first.
  • As you make progress and get rid of debt altogether, you’ll find freedom in knowing that you created a side hustle that isn’t only giving you freedom in life, but also in finances.