Freedom Number
Identify the "unearned" income needed monthly to cover your minimum core overhead (needs)
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Identify the "unearned" income needed monthly to cover your minimum core overhead (needs)
Last updated
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Your Freedom Number is the minimum monthly Unearned Income (money that works for you) needed to cover your core needs. It is the first specific target number and milestone in the TWF money mastery system and is used to plot your financial independence plan.
Using Maslow's Hierarchy of Needs model (ie; “food, clothing, shelter”), the wealth builder makes a clear distinction between Freedom (core needs) and Lifestyle (luxury wants).
Ie; If my core needs are covered, I no longer need to “work for money”, I am free to contribute to society or follow a passion. I am working for fulfillment not survival. If for some reason I cannot physically work, my core needs are covered.
Your Freedom Number is used to plot your progress when running calculations and projections on your existing Assets as well as “forecasting” and running simulations on possible A/B “what if” scenarios.
