Ryan Daniel Moran (Capitalism.com) presents a step-by-step "Lifestyle Freedom Formula" for building financial freedom focused on business-first wealth creation. Core pathway: build a $100k/month (≈$1M/year) business (often modeled as four products at 25 sales/day at $30 each) producing roughly $30k/month profit; pay yourself a salary; accumulate 1–2 years of living expenses as liquidity (roughly $100k–$200k for many people); then deploy business excess into passive-income assets (real estate, notes, syndications, Airbnb, dividend stocks). Maintain separate buckets for "passive income" (to fund lifestyle) and "speculation" (Bitcoin, growth stocks) funded only from surplus so essentials remain covered. Moran cites expected passive-return assumptions of ~8–12% and gives an example: to live on $500k/year requires about $5M in passive assets. He frames timeline estimates: ~1 year to build the $100k/month business (allow 1–2 years for consistency), and several years (e.g., 4–6) to reach full lifestyle freedom depending on reinvestment and growth.
Questions this video answers
$100,000 per month
Four products, each at 25 sales per day, at a $30 price point
Approximately $30,000 per month in profit
One to two years of expenses (roughly $100,000–$200,000 for many people)
About 8%–12% annually
Chapters
You want freedom, you want passive income, you want Lambos and big houses and all kinds of fancy shit. This is the real formula for how to get there.
All right, in the last video, we went through what my lifestyle looks like and how we pay for it and how I think about everything as an asset. I look at everything from the food that I eat to the relationships that I keep to the house that I live in in terms of roi. And I like that game. I like to play that game. I like to make the number go up. Business is my sport. That's the game that I play. I enjoy it, and it frees me up to just play the game as hard as possible. So what we're going to do in this video is I'm going to walk you through what I call the lifestyle freedom formula. This is how to plan and invest for passive income, lifestyle freedom and long term wealth. All right, so I'm going to walk you through the sort of waterfall of where cash flow and passive income comes from. And I think you'll see that when you follow this process, it all makes sense about how you can build up financial freedom really fast. Now, the first kind of top layer, if you think about this like the reverse food pyramid, the top level, the, the thing that needs to be there, that supports everything, is the business. And this is why when you're looking at people who are talking about Bitcoin or Defi or all these cool things that you should put your money in. And by the way, this is not financial advice. I'm not an investment planner or anything like that. I don't know who you are. I'm an idiot on the Internet that you found on YouTube somewhere. Don't listen to anything that I say. But what I do is I put all my focus for the first two years of your career, it needs to be in business. Now what I help people do is build million dollar businesses, getting to $100,000 a month in revenue by getting four products to 25 sales a day at a $30 price point. That is a million dollar business. So we're going to assume over here that we're starting with $100,000 a month in revenue. And let's say that that is $30,000 a month in profit. All right, cool. Your business makes 30k a month in profit. And at the end of the day, the first thing is for your business profits to pay you a salary so that you can be full time.
Now all your focus in here for like two years. Two years is about what it takes to have this be consistent and growing. We put ourselves on salary after one year when our business had just passed $100,000 a month. I teach the 12 month formula three stages, the grind, the growth and the gold, which is about getting your first sale, getting to 25 sales a day and then getting each product to 25 sales a day over four products. So in about a 12 month process, most people can theoretically have a million dollar business with about these numbers. But give yourself two years for that window. So you pay yourself salary, so you are full time in this. The next step is, is to build up a base of liquidity. And this is two years actually, let's say one to two years of expenses.
All right, based on my current life, what do I spend and how do I save at least one to two years of this? And there are places where you can put money that it will grow and not go down and still be super liquid. You can do this with life insurance, you could do this with index funds. But you stock away one to two years of living expenses, which for most people is one to $200,000 for most people. So you stock away 100 to $200,000. If you live on 50k a year, you're good. If you live on 100k a year, you are good. This is all here to now protect the business and you being full time in the business. Now we get to lifestyle investing and only here, not until the business is ridiculously profitable do we get to think about we're going to retire now on passive income. Because once we have the base of expenses covered and we have a business that's profitable, anything that is extra outside of salary, we are not going to bonus that out. We are not going to take that ourselves and then go buy a house. We're not going to do that. We're now going to buy assets that provide passive income. This is real estate. This is notes, this is. I invest in some private syndications. Company that I do a lot of business with is rev. That is Alex Mayer and Tai Lopez's company. They bought dress barn, Pier 1 models.
Stein Mart, Radio Shack, a bunch of really big brands. And I have a decent amount of my passive income coming from these sources. Real estate. This house, I have it on Airbnb. It provides passive income. Private investments provide passive income. Real estate syndications provide passive income. My goal is to make this number go up. This.
Is where lifestyle expands.
Up until this point. We live on salary and we have a base of savings. Now anything extra gets put into passive income. That is where we can say, okay, now I can expand my lifestyle. Because as soon as this number exceeds this number, you are free, my friends, you are home free. And that can take four to six years, that can take longer. But the only way it happens is by putting you in full position of the business. So this is where you start. You say first step, I'm going to build 100k a month business. That's where I start. That's not the end goal, that's where I start. Take a year, it'll take a solid year. We have this thing called a five day challenge. It'll walk you through exactly the plan for you that you're going to follow for the next year. It's five days, an hour, a day. We go through what market to be in, what products to sell. And it's custom to you, you get to work with somebody one on one and it's a hundred bucks. Find it in the description of this video. So your first step, get to 100k a month, you save one to two years, then you start deploying heavily. My opinion, everything then goes into passive income. I live on the passive income that comes from my life so I can expand my lifestyle based on the passive income that I get. And that frees me up to go even harder in business. And the harder I go into business, the more capital I make, the more money I make that I can put into more passive income investments. So I actually live under what I can afford based on passive income. Where does the rest of the money go? The rest of the money goes into dividends which are one of, I think one of the best long term stocks to buy dividend paying stock we have. I have whole trainings on dividend paying stock but I think they're one of the most predictable, stable, quality investments to own long term and speculation. This is bitcoin, this is ethereum. This is that stock you want to buy. This is where you put money into Tesla. Now this is just one man's opinion, but if you want freedom, this is the last part of it. You're not going to get freedom betting on bitcoin going up because the minute it falls, you're gonna freak the F out. That ain't freedom. And you will sell and you will go through that cycle of buy high, sell low. That's what happens when you're trying to get free, picking the right speculation. Your freedom will come from your passive income. Your speculation comes from the extra passive income. Never touch these two pieces.
At expense of your own focus on the business. A lot of people Buy things in speculation, hoping to get rich. You get rich by building the business, putting it into passive income. Then you can take your passive income and put it into Bitcoin and Ethereum and everything else you want to speculate on. Because if you're wrong, it doesn't matter. Your next month's expenses are still paid for. This, my friends, is the lifestyle freedom formula. You build a business to 100k a month, which takes a year and that will continue to grow, giving you more capital to put into the rest of the formula. Then you have your savings so that if the tish hits the fan, you're good and can figure things out for a year or two. The next step is you're putting into passive income. And it's pretty predictable that if you invest well, you can reasonably expect 8 to 12% on your investments. There are investments that do better than that that can also be riskier. But if you are putting it into reasonably safe areas.
8 to 12% is pretty easy to expect. So if you want to live on 500k a year, you need about 5 million bucks. Okay, cool. That means that we're going to grow this into an asset. Our passive income pays for our life and our passive income buys the speculative piece of it like Bitcoin and the stocks that we think are hot. That, my friends, is how you build a life. That's how you build a predictable stable income that sets you free to be an entrepreneur, to do whatever the heck you want and never have to worry about how you're going to pay next month. But it starts here. It starts with $100,000 a month business, a million dollar business which takes a year. So if you need help with that, we have a five day challenge called five days of seven figures. That's the best first step to plug into everything that we do. But whether it's me or somebody else, starting the business is the unlock to put everything else through here. Hey, my name is Ryan Daniel Moran with capitalism.com. this is how I invest for Lifestyle Freedom. I hope you found value in it. If you did, let me know in the comments. Thanks so much for watching. See ya.
