If you want to get out of financial survival mode for good.

If you want to rest easy at night, being at total peace with your wealth health.

If you want to have the freedom to focus on the things that are important to you in life…

Here is the 6-step formula you need to follow

We're going to cover:

1) Defining wealth on your terms

2) Calculating your Financial Freedom Baseline

3) Focus on your core income source

4) Build passive income

5) Stop doing things you don't want to do

6) Manage expectations & leverage acceptance

Achieving financial stability isn’t about making more money. It's about defining wealth and creating a system. It should make your income work for you, not the other way around. By following a straightforward framework, you can finally get out of financial survival mode and live your life as it was intended to be, with financial freedom and security.

Step 1: Define Wealth on Your Terms

To start, redefine what it means to be "rich." Forget about flashy lifestyles or arbitrary income numbers. True wealth is achieved when your passive income exceeds your burn rate (the money you spend annually).

For instance:

• A person earning $3 million a year but spending it all on taxes, expenses, and obligations may seem wealthy. But, they are under constant financial stress.
• Meanwhile, someone with $53,000 in passive income, spending $49,000 a year to live comfortably, is stress-free and secure.

Key takeaway: Wealth isn’t about how much you make. it’s about how much you maintain control over and how effortlessly you can sustain your lifestyle.

Step 2: Calculate Your Financial Freedom Baseline

First, calculate your total annual spending. To live comfortably each year, calculate the passive income needed to cover your expenses without running out of cash. Then calculate how much you need invested to live comfortably from the returns. Here’s a quick formula:

1. Estimate total annual expenses (e.g., $120,000)

2. Determine a realistic investment return rate (e.g., 6% annually)

3. Calculate your wealth target: Divide your expenses by the return rate. For $120,000 at 6%, you need $2 million in investments

This dollar target becomes your financial goal.

Step 3: Focus on Your Core Income Source

To build wealth, prioritize your main income source. Juggling multiple side hustles may seem appealing. But, studies show that focusing on your main job yields better results. Investing your time in becoming exceptional is the key.

Here’s how to focus effectively:

1. Identify something you’re naturally good at

2. Develop expertise to rank among the top 10% or even 1% in your field

3. Ensure your industry has a strong demand (e.g., 90% or higher employment rates)

Maximizing the return on a core income source will free up more time and money. You can then invest both to grow your passive income stream.

Step 4: Build Passive Income Streams

Once your core income is stable, begin creating passive income through:

- Investments: Low-cost index funds, dividend stocks, or real estate

- Rental Properties: Properties that generate income above maintenance costs

- Business Ventures: Scalable businesses that don’t require daily involvement

The goal is to grow assets that generate income with minimal ongoing effort from you.

Step 5: Stop Doing Things You Don't Want to Do

Financial freedom begins when you have the freedom to focus on what truly matters to you. You don't have to wait until you have more money to prioritize your values & needs. A big mindset shift happens when you stop doing things you don't want to do. Then, focus on what you want or must do.

For example:

• Musts: Obligations critical to your work or personal life
• Wants: Activities that bring you joy and fulfillment

By removing unnecessary things you don't want to do, you’ll find more time and energy to focus on meaningful pursuits and send powerful re-programming to your subconscious mind.

Step 6: Manage Expectations & Leverage Acceptance

Not everything is within your control. Markets fluctuate, unexpected expenses arise, and life throws curveballs. An accepting mindset lets you face challenges without losing energy or motivation.

• Don't waste energy fighting things that are out of your control. Accept it, deal with it, and move on.
• Maintain an open mind with positive, but not too specific expectations. We often don't see opportunities because we are too focused on one specific outcome.
• Adjusting plans when necessary without emotional overreaction is important. Money only has the emotional value that we choose to give it. The more you emotionally detach from money, the more freely it flows in your life.

Remember, financial freedom isn’t about earning millions of dollars year after year. It's about building a life where your passive income covers your burn rate. You can easily create this wealth for yourself with focus, discipline, and consistency.

First, calculate your financial freedom baseline. Then, invest in yourself. Finally, create passive income streams. With time and consistency, you’ll not only escape survival mode but also create financial freedom on your terms.

And remember: the ultimate goal isn’t just financial independence. It’s the peace of mind that comes with it and you deserve that!

Share this with someone you love who deserves financial freedom.

Kristen