Okay, we’ve had some real talk this week. We’ve looked at how your 9-to-5 might be holding you hostage and started forging the escape key by shifting our mindset from employee to business owner. You’re likely feeling a mix of fired up and maybe a little overwhelmed, asking, “So, what’s the actual plan?” That’s where today comes in. The very first step of a real, tangible plan is to calculate your freedom number.
Now, most of us have a “Big Scary Number” living in our heads—that mythical pile of cash we think we need in the bank before we can even whisper the word ‘quit.’ It feels huge, impossible, and decades away.
Well, I’m here to tell you that number is a myth. Today, we’re going to stop talking in hypotheticals and replace that scary myth with an empowering fact. We’re going to find your number, the one that actually matters, and I promise, it’s a lot lower and more achievable than you think.
What Exactly is a Freedom Number? (And Why It’s Not a Million Dollars)
Let’s clear something up right now. Financial freedom isn’t about having a Scrooge McDuck-style vault of gold coins. It’s not about being “rich.”
Financial freedom is simply having enough income from sources other than your 9-to-5 to cover your cost of living.
That’s it. It’s the point where you no longer need your primary job to survive. You work because you want to, not because you have to. Your Freedom Number is the annual income required to make that a reality.
If you really want to be free, you should know why you need a budget?
If you don’t know how to create a budget, Click Here.
To make this even more achievable, we’re going to break it down into two distinct stages.
- Bridge Freedom: This is the absolute bare-bones number you need to cover your essential survival expenses—housing, food, utilities, transportation, and basic insurance. This is the number that allows you to safely walk away from a toxic job to focus on your side hustle without the terror of not being able to pay your rent. It’s the bridge to your new life.
- Full Freedom: This is the number that replaces your current 9-to-5 income and covers your current lifestyle, including the fun stuff—vacations, dining out, hobbies, and savings. This is the long-term goal.
For today, our primary focus is on finding your Bridge Freedom number. Why? Because seeing that achievable first step is what will give you the courage and motivation to keep going.
A Personal Note
Okay, a quick personal note on this whole “Freedom Number” thing. Full transparency: when I finally sat down to calculate my number, I was already debt-free. But I need you to know that paying off your debts isn’t just a good idea; it’s like activating a cheat code that makes this whole game ridiculously more achievable.
Before we were debt-free, our monthly payments were like a mooching roommate who lived on our couch, ate all our food, and never paid a dime of rent. Let’s look at what that roommate was costing us: we had a car note for $250, another for $219, two student loans clocking in at $125 each, and a credit card bill that was easily another $200.
When you add it all up, our freeloader roommate was demanding over $900 a month! That’s more than eleven thousand dollars a year. That’s like spending the price of a deluxe family trip to the State Fair, giant turkey legs and all, every single fall on nothing but old decisions. Just thinking about it makes me feel queasy. Kicking that debt out of our lives was the single best thing we ever did for our Freedom Number.
But here’s the really cool part—the secret weapon. You can chase both goals at the same time! Think of it like a freedom flywheel. Every extra dollar you make from your new side hustle can be thrown at your debts. As the debts shrink, your Freedom Number literally gets smaller and easier to reach. Your side hustle pays off your past, which accelerates your future. It’s the ultimate win-win!
You can absolutely, 100% do this. Trust me, I have made every single money mistake a person can possibly make; I could probably teach a masterclass in what not to do. If I seem a little further down the road than you right now, it’s only because I got an earlier start.
So please, get started. Today. This very minute. I promise you, the journey is the most exciting part!
How to Calculate Your Freedom Number: A Step-by-Step Guide
Ready to get your hands dirty? Grab a pen, your laptop, or better yet, the worksheet from my Freedom Foundation Kit. We’re going to do this together.
Step 1: Become a Financial Detective (Track Everything)
You cannot manage what you do not measure. For the next week (or even just a weekend to start), I want you to track every single dollar you spend. Use a notebook, a simple spreadsheet, or an app like Mint or YNAB.
Most people think they know where their money goes. They’ll say, “I spend about $500 on groceries.” But when they actually track it, they’re shocked to find it’s closer to $850 because they forgot about the mid-week top-ups, the Costco runs, and that one expensive cheese they couldn’t resist.
To calculate your Freedom Number accurately, you need real data, not guesswork. Be honest and judgment-free. This isn’t about making you feel bad; it’s about gathering intelligence.
Step 2: Sort Your Spending into Two Buckets (Needs vs. Wants)
Once you have a clear picture of your monthly spending, it’s time to categorize every expense into one of two buckets. This is the most critical step.
Wants(Survival) Vs. Needs(Lifestyle)
Bucket #1: Your NEEDS (Essential Survival)
These are the things you absolutely must pay to live safely and healthily.
- Housing: Rent or mortgage payment
- Utilities: Electricity, water, heat, internet
- Food: Essential groceries (be honest here, the fancy coffee shop is a want!)
- Transportation: Car payment, gas, insurance, public transit pass
- Basic Insurance: Health and car insurance premiums
- Minimum Debt Payments: The minimum required payment on any loans or credit cards
Add all of these up. This is your Essential Monthly Expense total.
Bucket #2: Your WANTS (Lifestyle Choices)
These are the things that make life enjoyable but aren’t strictly necessary for survival.
- Subscriptions (Netflix, Spotify, etc.)
- Dining Out & Takeout
- Shopping for clothes, gadgets, etc.
- Hobbies & Entertainment
- Travel & Vacations
- Gym Memberships
- Anything beyond the minimum on debt payments
Don’t skip this! Seeing how much your lifestyle choices cost is an eye-opening experience and shows you how much financial flexibility you truly have.
Step 3: Do the Simple Math
You’ve done the hard work. Now for the easy and exciting part. Let’s calculate your Freedom Number using the totals from Step 2.
How to Calculate Your(Annual) Freedom Number
Essential Monthly Expenses (from Bucket #1) x 12 = Your Bridge Freedom Number (Annual)
Let’s use an example. Say your essential, bare-bones expenses add up to $2,800 per month.
$2,800 x 12 = $33,600 per year.
Take a moment and let that sink in.
Your “Bridge Freedom Number” isn’t the $80,000 pre-tax salary you have now. It’s $33,600. That is the actual amount of profit your side hustle needs to generate in a year for you to be able to safely leave your job and cover your necessities.
Doesn’t that feel a whole lot more achievable?
You can do the same thing for your Full Freedom number by adding your Needs and Wants together and multiplying by 12. But start with the Bridge. Let that be your North Star.
You Have Your Freedom Number. Now What?
This number is the most powerful tool you have. It transforms your vague dream of “quitting your job” into a concrete, mathematical goal.
Your new mission is no longer “I need to get rich.” It’s “I need to build a system that generates $2,800 a month in profit.”
See how much clearer that is? You can break that down even further.
- That’s about $94 per day.
- If you sell a $50 digital product, you need to sell two a day.
- If you’re a freelancer charging $50/hour, you need about 14 hours of paid work a week.
This is how you turn an overwhelming fantasy into a series of achievable steps. This is how you build a real escape plan.
The Easiest Way to Get It Done
I know that staring at a blank spreadsheet can be intimidating. That’s why I built the Freedom Number Calculator directly into my free “Freedom Foundation Kit.“
It’s a simple, pre-formatted spreadsheet where all you have to do is plug in your numbers. It will automatically categorize your spending and calculate both your Bridge Freedom and Full Freedom numbers for you. No math mistakes, no forgetting categories.
You’ve already done the mental work by reading this post. Let me give you the tool to make the practical work easy. If you haven’t downloaded it yet, now is the perfect time. It’s the ideal companion to today’s lesson.
[Click Here to Download Your Free Freedom Foundation Kit and Calculate Your Number in Minutes]
Knowing your Freedom Number is like being handed a map and a compass in the middle of a dense forest. You finally know which way to go.
Tomorrow, we’re going to look at the other part of the kit—your Skill Inventory—and figure out what assets you already have that you can use to start marching toward this number.
You’re doing great. This is how real change begins.
“We all learned to walk one step at a time after MANY failures, but we all survived it because we didn’t quit!!!”
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