Ryan Daniel Moran outlines a path to financial freedom: build a business to $100K a month in about a year, keep 1-2 years of expenses saved, then invest in assets returning 8-12% annually. To live on $500K a year, you need roughly $5M invested.
$100,000 per month
About one year
8% to 12% per year
About $5,000,000
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 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.
