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My Journey to

FREED​OM

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Where am I going?

10/22/2016

2 Comments

 
Where am I going? Didn't think of this until I started digging into my goals and plans. It's impossible to figure out a way to get to a place, when you don't know where that place is. That's what I was doing when I started writing out all of my goals. So let me take a step back...


I want to be financially free by the age of 30. What does that even mean? What does it entail? Everyone has their own idea of financial freedom and I need to outline what mine is. May 16, 2022: I wake up, take the dog for a walk, eat breakfast with my family, take the kid(s) to daycare (scary thought lol), check out the progress on a few of my flips, come home, take the dog out again, review comments/write post for blog, read (never stop reading) and maybe some TV if there's time before the misses and I go get the kiddos. This is what my first Monday as a 30 year old will look like. Some people's idea of financial freedom is waking up and shopping all day or sitting on the couch watching TV and that's totally fine; but for me I'd go crazy if I wasn't engaged in some sort of way. At 30 I don't plan on not working again - I just want to be able to work for me. When I want. How I want. And as for as long as I want to. 

I've always toyed with the idea of real estate investing; be it wholesaling, rental properties, or flipping. There's so many ways to attack this industry and honestly this wouldn't feel like work for me...more of a hobby. Growing up, I would go into open houses with my mom, watch HGTV with my dad, daydream about mansions with my buddy, and struggle to draw floor plans with my limited skills - bottom line I want this to be a big part of my life-after-30 income. Income..how much of that do I need?

Lets attack it the other way and estimate expenses for a family of 4 in a paid off home with 2 paid off cars and low credit card debt (no debt at all can be its own problem when looking for more).
  • ​Groceries - $500 (some estimates say up $200/week!)
  • Electricity - $120
  • Cell Phones - $120
  • Cable/Internet - $100
  • Hair/Beauty - $90
  • Gas - $100 (2 -$25 tanks twice a month for two cars)
  • Water/Sewage - $50
  • Health Insurance - $450 (estimate via ehealthinsurance.com) 
  • College Savings - $200 ($100 per child per month)
  • Emergency Savings - $300
All in all looks like I'll be needing about $2,030 a month. For my piece of mind, I'd need about a $2,500 buffer; so I need to shoot for $4,530 in after tax income. Also, let me know if I'm missing any major expenses. Thanks to Chloe for reminding me about health insurance!

I have roughly 5 and a half years to payoff approximately $200k in debt, plan and pay for a wedding, and be able to consistently clear $4,530 in monthly after-tax dollars. Jesus take the wheel...

This goal/planning post is a lot bigger than I thought so I'll break it into 2. Keep your eyes open for the second half mid-week. 

What does Financial Freedom look like for you? Let me know below!
2 Comments
Stancil
10/24/2016 11:28:24 am

You forgot the daycare expenses. Unless the kiddos will be staying with granny/papa. Which i'm sure they'll still want a lil spending change for their services. lol

The biggest piece of entrepreneurial advice I’ve received is “the key to becoming a millionaire is landing a high paying job that doesn’t require much work so that you have debt free funding to support your business and the freedom to develop it on someone else’s time while still being paid.” This is my key to financial freedom by 30-ish lol.

My actual goal is to have a 6 figure income after taxes by 30 solely based on my personal business. So essentially, I want to hit six figures well before 30 between my personal business and my job income. Once I hit six figures based only on my personal business, I’ll feel comfortable enough to release myself from my enslavement.

My plan to reach this goal is to capitalize more off of my talent for doing hair. It’s something I’ve been doing since high school and I just recently started to profit off of it within the last 2 years. Within the past 2 years I’ve flipped about 2k spent on virgin hair extensions into about 5k by selling bundles and hair units that I create and customize for people just in my free time. I’ve kind of come to a standstill with that because I’ve had to turn some orders and clients down because of my lack of time and because of certain requests that shouldn’t be performed without a license. Work and grad school have limited me from taking clients on certain days and getting my license in a timely manner, but this is my last semester so I’ll be accepting more clients soon and working on getting my license starting the first of the year so that I can finally start working on my personal financial goals not just academic and corporate goals.

Below is the breakdown of my plan to financial freedom:

Age Annual Job Salary Projected Annual Personal Business Income Total Annual Income before Taxes
24 $50,000 $10,000 $60,000
25 $60,000 $20,000 $80,000
26 $70,000 $50,000 $120,000
27 $75,000 $75,000 $150,000
FREEDOM
28 $80,000 $100,000 $180,000
29 $85,000 $200,000 $285,000
30 $90,000 $250,000 $340,000

The annual job salary increases are based on projected increments with performance evaluations and promotions while the personal business income increases are my yearly targets based on the year I receive my license (16 month process part time), number of clients I expect to service each month and number of hair pieces I plan to sell on my online store per month, increase in service prices based on increased skillset, increased service prices based on projected social media marketing/popularity (millions of followers on Instagram/Youtube), and profits from owning a salon and having employees to increase the number of clients that my business can service on a given day, etc....

Then once I grow my brand/salon to it's peak, i'll sell it or hire someone to run it for me and then enjoy my early retirement.

Kinda far fetched, but this is my plan to go all-luh way up *in my Remy Ma voice*

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Thirty&Free
11/1/2016 04:33:14 pm

How could I forget about the babies' daycare?! Thanks for the reminder!

Also, thanks for sharing your goals. It's nice to see other young people with the passion to retire early (or loathing of working forever lol) Gotta hustle now to relax later.

Keep me updated with where you're at with your goals, I'm excited to see your progress.

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Hello! Alex here. Saving and earning my way to financial freedom by thirty! Follow me on my journey!

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