Target Monthly Income

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Target Monthly Income - Financial Glass

Define your target monthly income.

Finally, I tracked out a target monthly income target for me to shoot for as I aim for financial freedom.

I’ve been meaning to start this website for a while now. Truthfully, I just haven’t had the guts to do it yet. I also didn’t have the story or know what I would be writing about. I had to find a defining purpose behind what I am writing. After my latest birthday in May of 2016 (It took me 8 months to post this…), it hit me. I was on the plane back from New York City on what was a very memorable trip. It was one of the best birthdays I had had in a long time. On the plane, I was reflecting on why it was so much fun and I realized it was because I was able to spend it with people I cared about.

The trip put into perspective that I wanted to be able to have many more birthdays like it and that I need to be in a place financially that would support my ability to spend quality time. Thus it was time to come up with monthly income targets.

Running the numbers

On the plane, I did some simple calculations on how I was going to get from $0 in passive income per year to $1 million in four years and $10 million in six years. I broke the number down into monthly income because it is easier to calculate and seems like a lower target.

I determined my current salary after taxes was $2,000 per month, which I used as my starting point. From there I calculated how many months it would take to achieve financial independence if were to keep doubling my monthly income. To hit the $1 million target I will need to double my monthly income every 7 months.

I wrote all of this down on my airline napkin and now have it hanging on my wall to remind me of my timeline. I even made it where I would achieve my goal earlier than expected as an incentive to work harder.

Target Monthly Income Broken Down

Below is my rough sketch of how I plan on achieving financial freedom…

I tracked back from my 28th birthday (May 29th, 2020) based on monthly income starting at $2,000/month. The timelines look like this:

$4,000/month – December 2016

$8,000/month – July 2017

$16,000/month – February 2018

$32,000/month – September 2018

$64,000/month – April 2019

$128,000/month – November 2019

$249,000/month – May 2020

The first milestone I hit as my base salary at my job went up slightly and is now $4,000 per month before taxes. I know that in order for me to have a shot at hitting these target monthly income numbers, I must acquire investments and streams of income outside of my 8-5 job.

I am focused on investing in real estate, building a business, and documenting my journey.