Your Dream Life Is Cheaper & Closer Then You Think…

yourowntermsThere comes a time in life when you start getting ‘realistic’ and those childhood dreams start to diminish into forgotten memories.

But why I ask?

When you were young your parents would fully support you when you said you wanted to be an astronaut or an inventor.

Then there comes a time when you’re in your mid twenties and dumping the thought of travelling the world for a few years on friends gives you a non-supportive response of ‘come on lets be real here you should focus on your career’.

But again I ask why, should it be this way?

You see after having been the the entrepreneurial space for a few years now there is one major flaw I’ve noticed almost every single person make. There are some who do actually do it right but most don’t.

I’d go as far as saying the masses are brain washed in this area of life…

And that brainwashing is chasing a yearly income instead of monthly cash flow.

Let me ask you this.

What would you rather have right now?

A. $30,000 cash handed right over to you in bulk.
B. Ten times less in the form of $3,000 but monthly cash flow.

Think about this for a moment. What one is better?

The majority of people are conditioned to go for the lump sum amount (and probably blow it super fast also) as that’s how you get paid a yearly salary. That’s how high interest loans are drawn out of all those silly toys you don’t need. That’s how home loans are also drawn up.

It’s even how the lotto is drawn and as we grow up we are conditioned to think ‘if only I won lotto and all that money I would be free’!

But the reality is that monthly cash flow is a much better alternative. $3,000 per month income can sustain your life for at a decent level forever. Where as just getting $30,000 cash in your hand is gone for good once it’s spent.

Here is a perfect example and I’m going to show you exactly why you need to start changing your mindset towards money towards monthly cash flow and get away from the annual salary space.

And trust me, this  might be numbers but when you do your own exercise on this it’s quite fun to do. And you won’t think  it’s just boring number mapping out your dream life when you realize how little you actually need.

So lets get to it shall we…

Right now I live in Big White and get to snowboard everyday. Big White is an awesome winter wonderland of a mountain in Canada and most people save up for a short holiday to come here.

If I ran my life on the total value of what this 5 month trip would cost then here is the break down.

  • Rent – $8,750 (my share of the $35,000 five month contract we have for our place)
  • Groceries – $2,000
  • Drinking/Fun Money – $2,000
  • Ski Pass – $700
  • New Snowboard Gear – $1,000
  • Flight – not included as I was already in North America

Total – $14,450

Now if you were making say $80,000 annually in your job. Took home $5,000 monthly and only had $1,000 left over to save for a holiday then it would take you 15 months to save up and take this trip.

The view from our balcony with the hot tub at Big White. The run is just behind the house.

Plus you would never get 5 months off so you would have to quit work, put your things in storage and have say $5,000 to get you going again after you go back home. So really 20 months of saving. Almost 2 years! It could be 4 years if you only make $40,000 per year.

Kind of crazy right?

But what does this work out to be monthly? It’s actually only a small $2,890. Lets round it off to $3,000/m.

All of a sudden it doesn’t feel like that much does it?

Freedom for the avid winter sport enthusiast living in a pristine winter wonderland in a home that on a spectrum that is 10x better then what people normally get living in the mountains is only $3,000 monthly.

But if you are dependent on a day job where most of you income is heavily taxed then it feels like you could never get there.

Let’s break this down.

$3,000 is how much life costs me right now for A class living in winter paradise.

This works out to be $100/day when you split it up.

Or if we times it up it’s the equivalent of $36,000 yearly. Now I did say move away from yearly but for this example I just want to make the point that my living costs on the mountain are basically at a point where you would be struggling to get by in other parts of the world.

Such as back at home for me in Australia. $36,000 yearly is basically minimum wage levels.

How is this possible then?

Simple.

You just need monthly cash flow through running your own business. You don’t need to have three million dollars in the bank to retire t 65.

You can start living your dream life in the next few months.

Not convinced?

Well let me run through another example. This example is what I see as my ‘dream life’ at this point in time as I don’t have any need to settle down somewhere due to my online business that provides my monthly cash flow. So all I do is travel and have fun.

In time I’ll start to own property and maybe even start a family but you will see later in this post how this example also applies to that situation.

Also, dream life is just two words I’m using and you will see how a dream life is not a dream but rather a realistic and rather small goal in the large scale of things.

Now while this is my ‘dream life’ that I’m actually living right now in 2014 if you go an figure out your own then I’m sure you will find it’s going to be quite similar money wise.

So as you can see my life right could be ‘perceived’ as some crazy dream life of consistent travel and adventure packed fun.

Here are a few pointers from above:

  • $2,000/month fun money and sudden expenses life throws at you
  • All flights are business class
  • $1,500/month car hire in New Zealand plus $60/week for fuel
  • 6 skydives a day @ $30 per jump ticket 6 days a week (540 jumps all up) when in New Zealand
  • Europe holiday has no costs listed but $6,000 for spending money
  • $1,000 for new snowboarding gear and $700 for a ski pass at the start of the season
  • Travel insurance is segmented at different levels as snowboarding insurance costs more monthly then just being in Asia without doing adventure sports.

So as you can see I’m not going cheap on anything and living a really good life. I get to travel around the globe chasing my favourite adrenaline sports most of the year and living in some really high end properties.

I’ll also take a few months down time in Thailand to live the beach life and I’ll even get a month holiday in Europe with a great budget.

The nutty part is life only costs me an average of $6,700 monthly. This works out to $1,675 per week. If we break this down even further it works out to be $223 daily.

How much money do you really need to live free?

How hard would it really be to create daily cash flow of $223?

That’s really a few sales a day of a $50 product online. Or lets say you deal with a higher end product of $1,000. Then you simply need one sale every 4 days. That’s only about 7 sales a month.

Really breaking it down like this put’s it in perspective doesn’t it? To create the income you need to live you dream life does not require this far-fetched and wild number of a few million dollars.

If you really break it down you might spend as much as I do monthly, maybe less or maybe even a few thousand more. But when you really figure it out you won’t need a crazy number.

So like I said before. These numbers are about me and what I’m doing right now in life. Everyone is different but lets take a look at a few factors.

Even if you don’t want to travel like I do then the $1,200/m on average that I spend on keeping a roof over my head would actually pay for a home loan taken out for a million dollar property on a 30 year loan at 5.98% annually. This $1,200/month in loan payment for $900,000 of the mortgage as you would need at least a 10% down payment (that would have been $90,000).

March 2014 Edit: The loan calculator I used must have been broken on the website I was on as there is no way you can get a $900K loan for $1,200. But the point I’m trying to get across still stands as you can have a nice home for that money each month. If you rent or if you own and are paying down a mortgage.  $1,200/m is still going to give you a nice home.

Now lets take my skydiving. It’s about $18,000 for the year. Not many, if any people reading this would be licensed sports jumpers. So this frees up a LOT of cash for an extravagant family holiday or lets say you wanted a $100,000 car. That $18,000 that I spend on skydiving works out to be $1,500 each month and this would get you a brand new $100,000 car.

It could be a Audi TT or lets say a brand new Mercedes Benz E250. Or to just rattle off a few more names you can get  top of the line BMW or Range Rover 4WD or even a top of the line Jaguar.

Or perhaps 2 very nice $50,000 cars if you have a family. Say a very nice Range Rover in the mid range and an Audi A3 and both still being brand new.

I could keep going with what you could spend the $28,000 I have budgeted for the year on fun money but I’ll leave that to your imagination.

Oh one more thing…

You can actually make that $40,000 for fun money in the year as you wouldn’t need the $1,300 yearly for travel insurance as you are not permanently travelling nor the $10,700 for the business class flights.

You see you can have all the toys you want in life when you have cash flow to pay for them. If you just have a day job where you are taxed at a high rate then it makes it harder to do this as you will live to work to pay off debt that never seems to go away.

But monthly cash flow from a business changes everything!

Truth right? As you will never be able to achieve what I speak about in this post if you chase a job and pay rises

I actually challenge you to try and create a $100,000/month budget to spend on paper like I have with my dream life. I’ve tried to do it and I can tell you it’s quite difficult unless you list that you are putting down a 10% deposit on a million dollar property each month if you were smart about it.

When I did this plan just for the fun of it I had stupid numbers listed like $10,000/month for car payments and that would be the likes of a million dollars of new cars in the garages. A monthly mortgage payments for a couple properties worth a few million each. $20,000/monthly for wasting money on going out and having fun and so on.

It’s also a stupid plan you’d never act on when you had that type of money anyhow as the richer you get the more financially wise you get and you could get access to that lifestyle without paying for it yourself. Expensive toys become part of business deals and so on, not personal costs.

So there you have it…

This is why you want to start changing your financial thinking to monthly cash flow and running an online business. Instead of thinking about being an employee spending after tax dollars.

And here is the kicker!

Back in my corporate work days in management I was actually making around $6,700 monthly but I never saw all of that money as a lot go sucked up by taxes. On top of that living payday to payday I would just waste my money thinking I need to get a raise when in reality I needed to create a monthly cash flow that was around if I worked or not.

But my life was depressing and shit. I was stuck in Perth in a job I hated with a career I didn’t want and I was always running out of money. I am grateful for the experience and opportunities I had but it was defiantly time to move on.

Funny how the same level of income with the freedom of running an online business now lets me live out my dream life.

What are you going to do now to create yours?

4 Comments

  • Hello Dominik!

    You are absolutely right about your dream life is much cheaper than you think. Right now i am living in Phuket Thailand just over 2 months and i can tell you.. Living like a king here costs 2000$ and i mean LIKE A KING!

    The second thing you said in your post that many many many people dont believe or know is that THEIR DREAM is much closer than they think..

    If people would only take action then they would see how close their goals are and how much they can achieve.

    • Hey Jason,

      Thanks for the comment and your thoughts. I 100% agree with what you said, well, it’s all in my post to haha! And what you mentioned also about people just not knowing how close they really are. There is so much truth in that and once you break out of the bubble society traps you in from birth it’s like you’re born again with the freedom you suddenly gain.

      It so easy to create an income online is kind of silly in fact. I will never let it happen but lets say I had everything fall apart in life and business. I could easily just fly to Thailand and work from internet cafes and make $500/month till I got things going again at a larger scale.

      Heck I could write articles for $10 and make that $500 from elance or dropship products on ebBay a few with 2 hours work a week and make that $500/m and still live a better and more free lifestyle then buying in my mental BS of going back to Perth thinking I would need a job. No one needs to do it if they can just wrap their head around the fact that they are so close to being free forever.

      That’s awesome you are living in Thailand like a king for $2,000. I know people out there right now and people who have lived there in the past running their online businesses and they have all said the same thing.

      I can’t wait till I get there later in the year. I’ve got $2,800 budgeted for myself each month and I know that it’s going to let me life the life and a half while I’m there as my friend did it last year and their comments were along the lines of spend $3,000 a month and live like you spend $30,000 month in Canada.

  • Very educative thanks dominik

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