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Step 3: Money Habits, Saving & Investing

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  1. MODULE 1 : RE-CONNECTING
    Welcome Back
    1 Assignment
    • Check-in Reflections
  2. MODULE 2 : CREATING MEANING FOR MY MONEY
    Millionaires Make Money Mean Something
    1 Topic
    1. Finding Meaning vs Creating Meaning
  3. Reflection Time
    1 Assignment
    • My Reflections
  4. MODULE 3 : TELLING MY MONEY WHAT TO DO
    Step 6 : Build a Plan & Tell My Money What to Do
    1 Topic
    |
    1 Assignment
    1. A Millionaires 1-Page Financial Plan
      1. My Millionaire Making 1-Page Financial Plan
  5. MODULE 4 : CREATING FINANCIAL FREEDOM
    Step 7 : Create Habits to Keep & Grow My Money PART 1
    8 Topics
    |
    1 Assignment
    1. The Secret way to Get Rich Quickly
    2. The Freedom Asset Tree
    3. Compound Interest
    4. How much do I need?
    5. How do I get started?
    6. Investments in ZA : Discretionary vs Employer Provided
    7. Saving in ZA : Options
    8. Investments in ZA : Alternative
    • Investing : Review my Investments
  6. My Questions about Wealth Building
  7. Reflection Time
    1 Assignment
    • My Reflections
  8. MODULE 5 : MONEY & OTHER PEOPLE
    Money in Relationships
  9. Millionaires Talk About Money
    2 Topics
    |
    2 Assignments
    1. Responsibility Ladder & Being REAL
    2. Tool : Steps in Expression
    • Have a Courageous Conversation
    • Have a Courageous Money Conversation

Participants 3

  • Marguerite
  • Mary J
  • Miriam
Lesson 10 of 9
In Progress

Financial Freedom

Mary J

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We take our work seriously and we also believe that Life is about experiences and enjoying it to the fullest, so we value a way of living that honours work, rest, exercise and play. 

MENU

  • Home
  • About Us
  • Courses & Memberships
  • Personal Services
  • Corporate Services
  • Connect
Menu
  • Home
  • About Us
  • Courses & Memberships
  • Personal Services
  • Corporate Services
  • Connect

FREE RESOURCES

  • The 8 Money Skills of Millionaires eBook
  • The 8 Money Skills of Millionaires Course
  • Free Webinars
  • Blog

Contact Us

  • +27824555919
  • Email Us
  • MON-FRI 09:00- 17:00
  • Cape Town, ZA
  • Online, Globally
MJF Wealth (Pty) Ltd is an authorized FSP48028 trading as My Journey 2 Freedom.
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PAIA Manual

Forum Description

What is Financial Freedom?

Whilst we believe that what financial freedom looks like to each person will be different and depend on your unique set of needs, wants, dreams and goals, a widely accepted view is that:
"Financial Freedom is achieved when an individual no longer lives from paycheck to paycheck as they have sufficient assets to generate an income on which to fund their lifestyle."
The question of exactly how much that is, is uniquely personal to each one of us. My enough is different to your enough. It's time to explore what your personal "Enough Number" is. This is a number that would support you in living a meaningful, fulfilled and purposeful life, however that looks to you. This number can be calculated in a number of different ways. It can be exciting, but also scary to consider this number. We therefore love working with the model of thinking about different levels of financial freedom goals, as described by Tony Robbins:
  1. Financial Security
  2. Financial Vitality
  3. Financial Independence
  4. Financial Freedom
  5. Absolute Financial Freedom
It's now time to calculate your five levels of financial freedom.

What you need to get started:

  • Pen & Paper
  • Your Spending Plan
  • Calculator

STEP 1 : Financial Security

Financial Security is about eliminating stress by knowing that your basic living costs are covered. These will include:
  • Rent / Bond
  • Utilities
  • Transportation
  • Food
  • Basic Insurance
How much do you need a month to cover these? Times by 12 to get how much you need a year to cover these. This would be a great first goal to work towards after creating your Emergency Fund on your journey to creating more security, choice and freedom for yourself.

STEP 2 : Financial Vitality

Financial Vitality is one step up where you’re moving from needs to wants. These costs are calculated to include 50% of the total cost of:
  • Clothing
  • Entertainment & Eating Out
  • Personal Lifestyle Costs like Gym Memberships, Beauty Treatments etc

STEP 3 : Financial Independence

Financial Independence is about having enough to cover the costs of your Life such that you do not have to work. This is the point where the assets you own generate enough income to cover your living costs, including both your needs and your wants. Here you can include:
  • The other 50% of your financial vitality costs
  • Any other costs associated with nice-to-have and lifestyle costs

STEP 4 : Financial Freedom

Financial Freedom is where you have financial independence AND you’ve got something extra that you desire and dream of. This might include:
  • Donation / Gifts for others
  • Luxury Item / Experience #1
  • Luxury Item / Experience #2

STEP 5 : Absolute Financial Freedom

Absolute or Ultimate Financial Freedom is where you never have to want for anything. What would this number be?

STEP 6 : Calculate your goal number for each level

Once you’ve got your annual number for each level, times that by 25 if you’ve got 30 years or more to go until the date you wish to attain the goal, or 30 if you’ve got less time to get the number you need to aim for. This is based on a simple 4% rule which states that you should start off spending only 4% of your total wealth in the first year and that starting as such, you should not run out of money before you die, as long as you are able to invest your wealth in assets that grow by more than the amount you increase your spend by each year thereby maintaining a growth value at a level higher than the level at which you spend.

How to succeed?

In order to succeed and reach Financial Independence, Financial Freedom or Absolute Financial Freedom one needs to exercise focus, commitment and discipline to two key things:
  1. Projecting, tracking and managing your expenses.
  2. Projecting, tracking and building up your wealth.

Additional Resource

We've created a spreadsheet calculator to help you calculate your "Enough Number" for each level of financial freedom which also includes a calculator to help you calculate how much you need to save between now and when you'd like to reach that number. You can download the MJ2F Financial Freedom Calculator here. When you're ready, it's now time to book your first individual Coached Lifestyle Financial Planning session with Mary J. Click on the assignment below to get started.
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