Since embarking on my new and exciting adventure, it is very important for me to know what I spend, to know what I earn and to know what my goals are that I want to achieve.
I’ve done some math, looked at my expenses and have come to the conclusion that I need $2500 a month to live comfortably.
This means that I will have a pretty apartment in the center of the city, drive a nice car, eat the food I want to eat without limitations and have a reasonable amount of money to spend on going out, partying and activities.
Roughly broken down, here’s what my monthly expenses are:
- Going Out:
- Subscriptions (medical/phone/internet):
Please bear in mind that this is a super comfortable way of living. I’m talking about a big apartment with granite tops everywhere, a Golf GTI as a car, plenty or good food and lots of going out. If I really needed to I could live off $1000 a month without sacrificing my health.
Of course I am going to try to spend much less than $2500 a month, especially while I am still in the building-up phase of my online business.
I just did this exercise so that I know what I need to make to live a comfortable life that I am very happy with. As you may remember, my personal goal is a net income of $5000 a month. This would be sufficient for me to live a very comfortable life, travel, save and invest back into my business. (At least this amount would be sufficient for me for the next few years).
You Don’t Need To Be A Millionaire
I learned this method of calculating from Tim Ferris (Author of The 4 Hour Work Week).
If I can live exactly how I want to from just $5000 a month, there is absolutely no additional benefit from having $1 000 000 in my bank account (other than a feeling of security and stroking my ego).
Then I can break it down even further and say:
- Okay, so I need $5000 a month to (currently) live my ideal lifestyle.
- That means that I need to make $167 per day, every day of the month.
- Take an average commission of an affiliate product or the price of my Upgrade Reality ebook and that is $27.
- That means I need to make 7 sales every day to be able to live like a king.
Now 7 sales a day doesn’t seem impossible does it?
Especially when you realize that I only need to make 4 sales a day to just live comfortable ($2500 a month).
So what I just did is take an impossible-seeming task of making $5000 a month and I broke it down into very doable bite-size potions.
Setting Realistic Goals
Goal-setting is an art.
Set your goals too low and you’ll achieve them easily and not be where you want to be. Set your goals too high and you won’t achieve them at all and you will feel like a failure.
The ideal way to set goals is to set one giant goal for yourself as I did with building an online business that will pay for my living expenses.
Then you take that huge goal and you break it down into bite-size portions as I did by showing you that I only need to make 7 sales a day to live how I want to live.
Now I set very small and achievable daily/weekly goals for myself.
For example I will say something like:
I want to write 30 articles this month for affiliate program X.
Spread these articles over various sites and interlink them.
I want to write 6 articles for Upgradereality
I want to redo affiliate site Y, and build (X amount of) links to it.
I want to create a new product about Z, ready to launch by (whenever)
This is my strategy and what I want to achieve by doing this would be something like:
After all the above is done I want to be making 1 sale per day (example).
By following this method of goal-setting, it is much easier to set a high or difficult goal for yourself and break it down day-by-day.
So what about you? How much do you need to make per month to be able to live the life that you want to live?
If you want to own a mansion and a Lambo, work out what it will cost you on a monthly basis and then on a daily basis. That way you can come up with a plan and strategy to be able to make that daily amount and you can live the life you want to live.
For me, $5000 a month is ample to do as I please, and I will be working at that goal every single day for the next 13 months.
50% Discount On Your Own Online Business Today!
Hostgator (the web-hosting service that I use) is offering a massive 50% discount on all new webhosting signups up to 3 years, TODAY ONLY!
(Monday November 29th from 12:00AM – 11:59PM CST (-6 GMT)).
This is a HUGE saving that I really suggest you take advantage of if you are considering starting a blog, website or even starting to make a passive income through affiliate marketing and mini-sites.
If you sign up to Hostgator through this link, I’m going to make it even better for you.
I will give you a free copy of my Upgrade Reality ebook or my Easy Healthy Dinner Recipes cooking course valued at $27. Just send me an email where you tell me the domain that you registered with on Hostgator and I will send you the free copy.
(I get a commission when you sign up, but it does not cost you anything extra. You help me and I help you.)
If you do sign up to Hostgator through my link, I will offer email support and assistance to you as much as you need to get your site or blog set up. I have quite a bit of experience with this, so you don’t need to worry about not knowing how to get started and set up technically.