Freedom Calculator


REtipster provides real estate guidance — not tax or investment advice.

This article should not be interpreted as financial advice. Always seek the help of a licensed financial professional before taking action.

Every real estate investor and entrepreneur I know has one common goal.

To be financially free.

But what does “financial freedom” mean anyway?

The concept is pretty simple. When you’re earning enough income from sources other than your day job (preferably, from “passive income”) to cover all your monthly living expenses, you’ve officially crossed into the realm of financial independence.

As the chart above implies, there are essentially two issues that need to be dealt with in order to become financially free:

  1. Understanding what your monthly living expenses are.
  2. Learning where and how to generate passive income (and then taking action).

The aim of this calculator is to deal with issue #1.

Originally inspired by Tim Ferriss’ monthly expense calculator, the Freedom Calculator is designed to give you some clarity about what your monthly income goal should be.

Another side-benefit of this calculator is that it should cause you to start looking critically at your monthly expenses. If you take some time to evaluate what the numbers are telling you, you’ll probably start to notice some ongoing costs that can be reduced or eliminated entirely.

When you clearly identify what your financial constraints are (both big and small), the real magic happens when you start to recognize which ones shouldn’t exist in the first place.

The Power of Cutting Costs

I’ve met a lot of people who feel stuck in a job they hate – and the only reason they continue to slave away at their job is that it pays enough money to cover the lifestyle they’ve chosen, and the monthly expenses they think they can’t live without.

However, a lot of the expenses we think we need to pay for are completely unnecessary.

The first time I went through this formula years ago, I found all kinds of ways to reduce and eliminate various line items from my budget.

  • I got different insurance policies the provide a better value at a lower cost.
  • I paid off my student loan and eliminated the monthly payment.
  • I got rid of cable TV (one of the easiest things I ever did).
  • I opted for a cheaper phone plan and stopped upgrading my phone each year.
  • I stopped eating out all the time.

Of course, living cheaper generally means fewer luxuries and cheap thrills in life. But keep in mind, the goal isn’t to live without these things forever… the goal is to reach financial independence ASAP.

If you eliminated a few unnecessary costs from your monthly budget, you could retire YEARS earlier than if you continued paying for things you don’t need, and might not even be using.

I loved this example from Mr. Money Mustache’s blog post about The Shockingly Simple Math Behind Early Retirement,

“Simply cutting cable TV and a few lattes would instantly boost their savings to 15%, allowing them to retire 8 years earlier!! Are cable TV and Starbucks worth having two income earners each work an extra eight years for???

There are always ways to live with more frugality, and if that’s what it takes to live life on your own terms and NOT be a slave to a working life you hate, isn’t it worth it?

If you’re in desperate need of freedom NOW, there are probably plenty of opportunities to reduce your monthly expenses so you can fire your boss sooner rather than later.

I hope this calculator shows you what it showed me, that financial independence and early retirement is a lot more achievable than most people think.



Need Help Finding Real Estate Deals?

The Beginner's Deal Finding Guide Logo

One of the most important skills every real estate investor needs to learn is how to find great real estate deals. This is the bedrock of every successful real estate business.

I struggled for years to figure this out, but when I finally did - everything changed. The ability to find super-profitable deals consistently is a milestone that made all the difference to me, just like it can for you.

If you need help finding better deals - you need to know about The Beginner's Deal Finding Guide. This is a premium course from REtipster, all about getting you intimately familiar with the multitude of ways you can find incredible deals on any type of property in any market conditions.

We'll show you the essentials you need to know so you can put together your action plan and start finding deals today. Come check it out!

Learn More About the Deal Finding Guide!


Did you find this calculator to be helpful?

Our goal is always to provide our readers with the most up-to-date and relevant content so that we can continue to empower others! Please share your feedback.


Bonus: Get a FREE copy of the INVESTOR HACKS ebook when you subscribe!

Free Subscriber Toolbox

Want to learn about the tools I’ve used to make over $40,000 per deal? Get immediate access to videos, guides, downloads, and more resources for real estate investing domination. Sign up below for free and get access forever.

Scroll Up

Welcome to REtipster.com

We noticed you are using an Ad Blocker


We get it, too much advertising can be annoying.

Our few advertisers help us continue bringing lots of great content to you for FREE.

Please add REtipster.com to your Ad Blocker white list, to receive full access to website functionality.

Thank you for supporting. We promise you will find ample value from our website.