I Need $2500 A Month To Live Awesomely. How About You?

$2500 a Month





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:



  • Rent:
  • $600
  • Car:
  • $600
  • Food:
  • $400
  • Going Out:
  • $400
  • Subscriptions (medical/phone/internet):
  • $500
    $2500





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.

  • Anon

    My income is 2500-2700 a month, I work construction and as a IT intern. My expenses are: $250 rent, $200 food, $175 car, $60 cell, $150 gas. Total expenses are: 785 per mo. I’m left with around 1.8-2.0k per month. I’m 19 years old

    Life comfortably but live below your means. The money comes in handy. Whether it be for a new vehicle, a investment, a child, marriage, whatever. Be smart with your money.

  • Pingback: Do What You Love Report (Month 1) | My Fingers Aren't Broken

  • Chris P.

    Hey Diggy,

    You’re on your way. I am on the same plan I have been working non-stop since I got out of school I make pretty good money but I hate spending the best hours of my day getting someone else rich. Good luck I will be keeping track of your progress.

    • Diggy

      Hey Chris,
      Thanks for stopping by!

      Good to hear that you are making money. Are you making money online or do you have a job in the real world with a boss and office and all that? :)
      Keep well!

  • Pingback: Do What You Love Experiment (A Writer’s Journey) | My Fingers Aren't Broken

  • Andrew

    Good luck on your journey diggy. I too have similar goals, but the difference is i want to earn enough money to pay for a college education.

    • Diggy

      Hey Andrew!

      Thanks for stopping by:)
      It’s definitely possible, you just have to take action and work towards your goals every single day!

      Feel free to email me whenever and I will help you out where i can!

  • http://youngandretired.com/ Michael Wilbourn

    Love the site man! I recently started a blog on entrepreneurship and I found you on Twitter. I will be following you in the future for sure!

    This thing I love most about this post is the fact you point out that you don’t need to be a Millionaire to be happy. I Agree with this %100!

    If you do not set realistic goals when taking our ideas live you will never succeed when the realization of how much effort it takes to succeed hits you. Success does not come over night, it requires so much determination!

    -Mike

    • Diggy

      Hey Mike!

      Thanks for the kind words and happy that you found Upgradereality :)

      Yeah it’s all about setting realistic goals, making a plan and taking action every day to reach your goals. It may take a month and it may take 3 years, but with the right mindset and approach anyone can do it.

      Best of luck with your new blog!

  • http://bakerthebrand.com Baker

    Diggy,
    The numbers look very doable, like you mention one thing at a time. I’m on a similar mission myself, so it is great to read on others moving toward similar goals.

    • Diggy

      Hey Baker!
      Thanks buddy:)

      I hope you succeed in reaching your own targets and that you make good progress!

  • http://bloggingwithsuccess.net/ Ishan

    Diggy, this is a great post.
    For me, $1000 per month would be a great goal to achieve. I am in a country where this is a pretty good amount to start with and considering that my needs are not much(I am a student), this is the goal for me!
    Thanks for this thought provoking post.

    • Diggy

      Hey Ishan!

      Yeah $1000 monthly is my first target too. It’s very do-able but it takes some hard work and persistence!

      Start today, and even if you just spend 1 hour daily on working towards your target, you’ll get there quicker than you think.

  • http://ineeddiscipline.com Dean Saliba

    Great post. I reackon I would live comfortably on around $1000 a month.

  • http://Brainchanging.wordpress.com Justin Guzman

    Diggy, awesome post man. It really got me thinking back to the 4HWW of Tim. Its been a while since I read and you helped me remember the TMI stuff. I thought it was cool showing people exactly how you break it down selling only 4 books a day to live comfortable. I am reinvigorated now to get my muse kicking.

    thanks,
    Justin

  • http://sffarlenn.net/ Laneth Sffarlenn

    Hey Diggy,

    Thanks for this post – very thought provoking!

    The thought of earning 5k a month is tantalising to say the least! Living in Australia and working full-time in my current job, I’m earning enough to live “comfortably” but with little room to move.

    My wife earns more than I do, but I’m not worried about that—very old world thinking that—and she’s tossing up between two different career paths that will see her either gain or lose money annually – hard spot to be in.

    You’ve got me thinking now about my “optimal” monthly income so that we two can do each month what we’d really like to be doing – let’s hope that the planning and hard work to come in early 2011 will pay off, eh?

    Cheers, Laneth.

    • Diggy

      Hey Laneth,
      Thanks for your cool comment!

      Yeah life isn’t always as easy as it seems, but the most important thing is to know what you have, to know what you need to have and a plan how you will get to where you need to be.

      What you are doing now is great! Figuring out what you need, and how much you need to spend to be able to live how you want to live with a little extra breathing room on top of that.

      This way, you can go ahead and make a plan. Maybe you need a second job. Maybe a new job. Maybe something on the side with an internet-based business.

      Of course it will take you a few months, maybe even 1-2 years, but if you start now you could have that financial freedom soon and for the rest of your life.

      Best of luck!

  • Parker Lee

    Hey Buddy,

    this is good stuff, to be honest with you i have an idea of how much i need a month.

    up until 8 months ago i had the worst money management, i would make all this money 1 month and have no idea what happened to it the month after.

    i started keeping all my receipts and writing down how much i spent going out.

    turned out i spent around 1000-1500 on just going out! my lord

    of course it’s gotten much better for me, in the end.. you’re right.

    we all have to write everything down to get a clear and crisp vision and idea of where we need to be.

    cheers!

    • Diggy

      Heya Parker!

      Good to hear that you are making so much!
      Also good to hear that you have decided to pay attention to what you are spending. $1500 a month on going out seems like a lot of money. But then again, it depends on how much you are earning.

      If going out and partying/getting girls is what you really enjoy, then it’s okay to spend a lot of money on it.

      Just make sure that it isn’t going to bring you into any problems financially :)

      Thanks for stopping by!

  • http://www.healthmoneysuccess.com Vincent

    Hey Diggy,

    7 sales a say and you will reach your goal. I bet you can achieve that. Good luck with your journey and I will join you too at the start of 2011.

    Cheers,
    Vincent

    • Diggy

      Hey Vincent!
      Thanks buddy, looking forward to making good progress and helping each other out!

      Cheers!

  • Tanvir

    Hey Diggy,

    I’m also trying to do something similar as I’d like to make a full time living from the internet in the next few years. For me the hardest part is getting started so I think mapping things out like you did is a good way to go. I’ll be following your journey very closely over the next 13 months!

    Tanvir

    • Diggy

      Hey Tanvir!
      Cool to hear, I wish you good luck on your journey!

      Yeah you need a plan. From beginning to end, with an exact strategy to follow. It doesn’t matter if that changes along the way, but you need a plan to stick to, otherwise you will be completely lost.

  • http://www.vicdorfman.com Vic Dorfman

    Dank post diggy!

    5k is a great goal.

    I never could agree with the idea of growing emaciated while waiting for my biz to hit landmark X.

    Health and peace of mind promote business as well as all growth.

    And clearly everybody has very personal prereqs for optimal happiness so…if it feels good, do it!

    Keep on brother.

    Good Vizibes~
    Vic

    • Diggy

      Hey Vic,
      Thanks for the kind words man.

      Determination,persistance + hard work will get me to my goal! :)

      Have an awesome day!

  • http://www.lifestyledesignunleashed.com Richard @ Lifestyle Design Unleashed

    Coming from the UK where real estate is typically much more expensive than the States I’m still stunned that you’re quoting $600 for rent – this is between £300-400.

    Seriously you can get a nice apartment for this? In the US? Which city?

    Honestly in the UK you would get a very basic apartment for twice that, and a nice one for several times that.

    I rented a single room off a friend a few years ago for $700 a month!

    • Diggy

      Hey Richard!

      Yeah man, that’s one of the benefits of living in South Africa. And those prices are still in the center of Cape Town, so rather expensive still compared to the rest of the country.

      That is why when you can make a few thousand $ a month, and live in countries like Thailand, South Africa, Argentina etc, you can live like a king.

      • http://www.worldhackingguide.com Robin Raindropcatcher @ World Hacking Guide

        Yeah, I can only agree with Richard. I live in the UK as well. To be precise, I live in London. And I was quite confused about your apartment price as well until I remembered where you live.

        At the moment I live in a tiny room in tube zone 2 and still pay about hundred pounds more rent than you xD

        But I guess that’s the price of living in the city I love…

        Anyway. I agree with you about everything you’ve said and to be honest, I would still only need about $1500 to live comfortably. I’m working on the 2000 anyway. And the next goal will be 5000 as well, as this would just provide everything I need to travel and cover expenses for damaged gadgets ect.

        I really like this post. It’s the first one I read on your blog, so I’m curious for more.

        The best to you :)

    • http://www.unleashreality.com alex – unleash reality

      hahhha this guy could buy Lesotho with that kinda money

  • http://www.whereisjenny.com Jenny

    I wish you well on your journey. I, too, am on a similar path. I want to get to the point where I’m making $5k per month in passive income. I like how you broke it down into how much you needed to make per day and how many sales that was. New way of thinking and doesn’t seem like that hard of a goal! :)

    • Diggy

      Hey Jenny!
      Thanks for stopping by:)

      Yeah, take it day by day and stick to your big plan, but set smaller daily and weekly goals for yourself to make it seem easier and more do-able.

      Good luck on your own journey and feel free to email me if you want to talk strategy or specifics.

  • http://www.joshuanoerr.com Joshua Noerr

    Well, things just changed for me. I recently learned I will become a father in the summer, and I can’t wait.

    As such, that has lit a fire under me to create the lifestyle I want so my wife and I can spend as much time as possible with our new little one.

    I will need about $4000 per month, and I am going to create that income in a way that doesn’t require 50-60 hours of my time each week.

    I don’t want to miss important things in my new child’s life. More than the money, it’s about the time I need. There is no price tag on that time!

    • Diggy

      Hey Joshua!
      Congratulations man, that is huge!

      It’s great that you know what you want and how much you need. I can totally imagine that getting a baby will inspire you like crazy!

      Are you going to work on an online business or something in the real world?

      I wish you the best of luck and lots of love and happiness with your new family!

  • http://www.peopleskillsdecoded.com Eduard @ People Skills Decoded

    I can do with about half that amount Diggy and live awesomely. But I do live in Bucharest, which is a relatively cheap European capital.

    Anyway, I like the whole approach of your post. I think the more we free ourselves from the need for stuff, the more flexibility we have and the more we can enjoy life. Life is in my view, about having fun, not stacking your place with stuff.

    • Diggy

      Hey Eduard,
      Yeah man, cool to hear. It’s nice if you make money online and then live in a place where you do. Then you can really have a ball!

      I like the idea of not having mass amounts of stuff, but at the same time I like the idea of having lots of money and having beautiful stuff in my house. Not a lot of stuff, but the essentials all of good quality.

      Everyone has their preferences, it’s just a matter of deciding what you want and then working out how you are going to get it!

  • http://ducedo.com Stefan

    What about clothes, books, gifts, beauty (shampoo, shaving, [...]), traveling, hobbies (camera, training equipment, computer), etc.? I wouldn’t say that you are way off with $2500 but it feels like you’ve left some things out.

    • Diggy

      Hey Stefan,
      Yeah maybe I should have mentioned those things, but I have enough of everything to last me years.

      I have plenty clothes, my car is paid for, I have a computer, cameras, gadgets, iphone…pretty much everything you can ask for. Beauty stuff would fit under groceries, because how much shampoo and soap does a guy really use?

      $2500 a month is what is needed for a comfortable life, and obviously big expenses and traveling are not a part of that. That is why I set myself a goal of $5000 a month which would be very comfortable for one person to live off, and would allow for travelling, saving and bigger expenses.

      My bigger goal is $10 000, but I’ll get working on that after I reach $5000. Small steps at a time :)

      Thanks for stopping by!