Answer the questions below to help find the answer to how much do you need to make to live comfortably?
Figuring out how much it costs to live the way you want, or how much you need to make to live comfortably, is the best way to figure out how to reach your vision.
You may have to do research to get a realistic idea of how much it costs to live as you want. The research will vary depending on how close you are now to that reality,
Getting specific about the numbers allows you to better focus on your goals. This is especially true if you hope to quit your job to achieve your new lifestyle.
Figuring Out How Much Do You Need to Make to Live Comfortably
How Much Are Your Fixed Expenses?
Everyone has fixed expenses. These include rent, car insurance, secured loans, and things like that. A fixed expense is just an expense that you have each month. These are generally about the same amount, no matter what you do. This number will encompass the bare minimum you need to live without food.
How Much Are Your Variable Expenses?
These are expenses you have more control over and can be flexible each month. They may include such things as groceries, utilities (unless you’re using budget billing), entertainment, and things like that. Some may be required, like groceries, but they may also be optional, like going to the movies.
How Much Are Your Periodic Expenses?
This type of expense generally comes up quarterly, yearly, or some other period. This may include homeowner’s insurance, timeshare fees, taxes, garbage pickup, and maybe even medical bills that you didn’t expect.
What Expenses, If Any, Will Be Eliminated When You Quit Your Job?
It’s a good idea to add up the real costs you now have but also note the things that won’t be an issue when you don’t have your job. For example, if you eat lunch out daily due to work, need to buy certain tools or clothing, or pay for transportation to and from work, those expenses will generally be gone when you quit.
What Do You Need from Your Business to Quit the Job?
Once you add everything up, you can determine how much you need the business to generate before you can quit the job. You don’t need the business to generate the lifestyle-changing income that you’re going to quit. You only need to replace your income – and maybe less if some of your expenses will be eliminated once you quit.
So, How Much Do You Need to Make to Live Comfortably?
The number you come up with that enables you to quit your job and live off your business income may be a lot less than you think.
If you are struggling financially now with the job, you may find out that you need more.
However, sometimes, you just find out that you need to do better with budgeting and financial planning to help you do more with less.