How To Calculate Your Financial Security, Financial Vitality, Financial Independence, Financial Freedom and Absolute Financial Freedom Numbers

In this blog we will go over how to calculate your Financial Security, Financial Vitality, Financial Independence, Financial Freedom and Absolute Financial Freedom numbers from Tony Robbin’s book Money Master The Game.

Tony Robbin’s recommends doing this exercise to make our dreams concrete, and the create plans to achieve them.

I recommend you read the book, I’ve read it and listened to it over and over again in my husband’s car.

So, let’s begin!

Dream #1: Financial Security

What does financial security mean?  Tony Robbins says it is:

1. Your Home Mortgage / Rent
2. Your Utilities
3. Your Food
4. Your Transportation
5. Your Basic Insurance

How would you feel if you didn’t have to worry about paying for any of these costs?

To me that would feel AWESOME!!!!!!!!!!!!!!!!

So, figure out how much it costs you to pay for these 5 costs and that’s how much passive income you need for Financial Security.

Here are my numbers as of writing this post:

1. Housing – $2,500/mo with our mortgage OR $900/mo with mortgage paid off
2. Utilities – $130/mo
3. Food – $600/mo
4. Transportation – $820/mo
5. Insurance – $453/mo

TOTAL W/ MORTGAGE – $4,503/mo or $54,036/year

TOTAL PAYING OFF MORTGAGE – $2,903/mo or $34,836/year

According to Tony Robbin’s book, the national average is $34,668/year.

What’s your Financial Security Number?

Dream #2: Financial Vitality

What is financial vitality?

Tony Robbin’s says it’s a mile marker on your path to Financial Independence and Freedom.

You’re not all the way there yet, but you have some extras you can enjoy without having to work.

Those extras are:

1. Half of your current monthly clothing costs
2. Half of your monthly dining and entertainment costs
3. Half of your current small indulgence or little luxury costs

So let’s calculate that would be…I’ll go first!

1. Half of your current monthly clothing costs – $170
2. Half of your monthly dining and entertainment costs – $315
3. Half of your current small indulgence or little luxury costs – $50

My total extra monthly spend for financial vitality is $535.

For a year we spend $6,420.

So our Financial Vitality number is our Financial Security + $6,420 = $60,456 with mortgage / $41,256 without mortgage.

Go ahead and calculate yours!

Dream #3: Financial Independence

Financial Independence for Tony Robbins is when you don’t have to work for money anymore.

All of your current costs are paid for.

So how much do you spend in a year on everything?

That’s your Financial Independence Number.

Ours is $116,000/year with mortgage.

What’s yours?

Dream #4: Financial Freedom

Financial Freedom is about freeing up your lifestyle.

According to Tony Robbins, Financial Freedom would mean you’re independent, you’ve got everything you have today, plus two or three significant luxuries you want in the future, and you don’t have to work to pay for them either.

What kind of lifestyle do you want and deserve?

What do you want to money for?

Calculate your Financial Freedom number by naming and pricing out 3 items (2 luxury and 1 charitable) that you want but don’t have today:

1. Luxury item #1 per month
2. Luxury item #2 per month
3. Donation per month

In my case, I  have these numbers:

Luxury item #1 per month – House close to the ocean in Hawaii or some other tropical paradise with surf – $11,000/month

Luxury item #2 per month – Housekeeping staff – $1,250/month

Donation per month – $1,000,000 / yr foundation to donate to causes chosen by my husband and myself – $83,333/month

TOTAL per month = $95,583 / month

TOTAL per year = $1,146,996 / year

Add Financial Independence $116,000/yr + $1,146,996 = Financial Freedom $1,262,996 / yr

What about you?  What’s your Financial Freedom number?

Dream #5: Absolute Financial Freedom

What would it be like if you could do anything you wanted, anytime you wanted?  How would it feel if you and your family never had to want for anything again?

This is what Tony Robbins means by Absolute Financial Freedom.

You calculate it by adding in 3 more luxury items and their costs per month.

I’ve been thinking about this category for a while, and I actually had difficulty at first.

Now I can think of lots, like $1,000,000/year for angel investing, a second home in LA by the ocean and the boardwalk at Hamilton Beach.

The list below are my favorites at this point.

1. Luxury item #1 per month – First class vacation 1 month every year – $4,000 / month
2. Luxury item #2 per month – Private School for our children – $2,500 / month per child
3. Luxury item #3 per month – New Car with Driver – $2,500 / month

Absolute Financial Freedom TOTAL $1,370,996 / yr = Financial Freedom $1,262,996 / yr + $108,000 / yr

Go ahead and take the time to price out your dreams, and figure out what your luxuries would be.

Enjoy the exercise!

Conclusion

I read Tony Robbin’s book, Money Master the Game, almost a year ago, but finally took the time to actually follow his exercise on calculating my Financial Security, Financial Vitality, Financial Independence, Financial Freedom and Absolute Financial Freedom numbers.

It was challenging at first to think of the luxuries that I wanted.

It was also challenging to calculate all of our expenses and see what we were actually spending.

Even though I wrote this blog post months ago, I finally finished editing it!

I feel much more clear about what I want, and I now know the price of some of my dreams.

I’m really glad I did this exercise, and am excited to see these dreams come true!

If you haven’t already, I encourage you to take the time to calculate your Financial Security, Financial Vitality, Financial Independence, Financial Freedom and Absolute Financial Freedom numbers.

See what you find easy and what you find difficult.  See what your dreams will cost!

About Mey Duldulao

Back in 2011 I had over $30,000 in credit card and line of credit debt, was living paycheck to paycheck and was stressed out over my lack of success in my financial life.

In April of 2016, I became debt free and had a monthly passive income stream.  I quit my job on December 23, 2016, and started doing my dream work of mentoring others on what I did to create the freedom to quit my job.

In 2017 we bought our first condo in Waikiki, and we went on 5 weeks of vacation (including a 7 day cruise to the Mexican Riviera)!!!

In 2018 we bought our first investment property and we converted our first condo into our 2nd investment property.

In 2019 we sold an investment property to buy our dream home steps away from Waikiki beach.

I spend most of my time doing what I dreamed of for years, spending my days with my son Jordan and my husband Jomel, enjoying motherhood and being a wife.  I also enjoy researching Financial Freedom and sharing what I learn with my clients and on my blog.

If you want to learn more about how I can help take back control of your money and your time, then CLICK HERE, watch the free video and get started!