Know Your Numbers
Happy Financial Friday!
Last week, we discussed your Top 3 Concerns and Questions about Money and the Solutions for each.
Over the next few weeks, we will dive even deeper into each of the 3 top concerns.
This week: Know Your Numbers
This solution comes from the concern that most people don’t even know how much money they need to be making to feel truly happy and successful.
The problem with not knowing is that there will always be a sense of there never being enough money.
To alleviate that problem, I want you to get to know your Target Monthly Income number.
Even if you already think you know what your ideal income amount is, I encourage you to do this exercise.
4 Steps to Determine Your Target Monthly Income
Step 1: Make a list of all the things you want that cost money
Below are some examples to get you started:
The exact color, make, and model of the car you want
The type of place you’d like to live in (i.e. move out on your own into a 1-bedroom apartment, get your own 2-bedroom house, etc)
The location you’d like to live
The cell phone and data plan you want
How many times a month you want to go out to eat (take the weekly number and multiply it by 4)
How many times a month you go out drinking / partying (take the weekly number and multiply it by 4)
How many times a month you want to go out and socialize / try something new i.e. go to museums, see shows, go to the movies, etc. (take the weekly number and multiply it by 4)
Decide if you want to hire a 1 on 1 coach to help you with your goals i.e. a personal trainer, life coach, love coach, money coach etc.
Are there any memberships / clubs you want to join i.e. gym, dance school, yoga studio, etc.
How many times a month you want to do self-care i.e. Spa Days, Massages, Facials
How many times a month you want to do self-grooming i.e. Mani/Pedi, Waxing/Threading, Hair Wash/Cut/Blow
Vacations you want to take
Step 2: Research How Much Each Item Costs
Look up the car you want to have online or Visit the dealership and get an estimate how much it would cost you per month to either own or lease the vehicle you want. General estimates anywhere from $199 - $499 / month depending where you live.
Look up apartments / houses you want to live in the location you want to live and get an estimate on the monthly rent or mortgage payment. This could probably be anywhere from $800 - $1500 per month if you live in Southern California.
Look up the monthly cost for the cell phone and/or data plan you want.
Multiply the amount of times you want to go out to eat by $20-40 (depending how much food you usually get and the price point of the restaurant you usually go)
Multiply the amount of times you want to go out partying / drinking by $50 (because let’s be honest, you know you love buying people shots lol).
Multiply the amount of times you want to go out socialize / try something new by $20-50 (because a night out at the movies is at least $20 plus snacks and museums or shows can run anywhere from $10-50).
Find out how much the 1 on 1 coach you want to hire charges per month.
Add up any monthly memberships for any gyms or studios you want to join.
Multiply the number of times you want to do self-care and self-grooming by $50-$200 (depending on the type of self-care and grooming you normally do).
Research the total cost of any vacations you want to take and divide the total number by 12 to get a monthly estimate (consider airfare, lodging, ground transportation, meals, and entertainment).
Step 3: Consider Any Additional Expenses Not Listed Above
Money you send home or give to your family
Debt payments (i.e. credit cards, student loans, personal loans, etc.)
Tithing / Charity
Any other regular payments you need to make
Step 4: ADD IT ALL UP!
Add up all the monthly numbers and THE TOTAL is your TARGET MONTHLY INCOME.
This is the amount of money you need to be making PER MONTH to feel completely successful and happy!
What number did you come up with?
I’d love to know!
I’m sure you’ll be surprised it’s not eleventy million dollars like you thought it might be and is in fact very achievable once you set the goal!
If you’d like support with this process, I’d love to help you with a free, 45 minute clarity call.
If this is something you’re interested in, click here to shoot me a private message and we can set something up.
On this call we will:
- Address your primary money concerns.
Identify what habits and blocks are getting in your way.
Come up with a plan for you to move forward.
Wishing you the best,
Women Empower, Love & Money Editor
Founder, Self Love Story & Self Love Healing Center