The Three Numbers You Need To Know

Jul 17, 2020

If you want to create a life of freedom, then you need to write down three numbers.

Freedom means being able to wake up each morning with choices. Choices around when you work, where you work and who you work with.

The First Number: Your Basic Living Costs

The first number you need is the amount you need to earn each month to cover your basic living costs. For many of my clients that number is between £2,000 and £4,000 depending on whether they are a single parent and where they live.

When you are able to generate this level of monthly income with ideally the lowest time investment, the rest of the time is yours to choose what you do with.

Once you have reached this income level, you can move onto number two.


The Second Number: A Wonderful Life

The second number is the amount you want to earn to have a wonderful life. A life with the things you love to do.

For my clients, this number can range from £80,000 – £150,000 for them to travel, have a great house, treat family and friends, support causes they care about.

The Third Number: Financial Independence

The third number is the amount you need to know is the amount of money you’ll need in investments to cover your living costs.

Once your investments cover your living costs, you have total time freedom.

I use this formula from the FIRE movement (Financial Independence, Retire Early).

Basic Living Expenses x 12 x 25 = the amount you need to have in a portfolio to be able to draw out 4% to cover your living expenses.

For my clients, this number is often between £750,000 and £1m



Notice what thoughts came into your mind or feelings were generated by those three numbers.

Maybe there were some limiting beliefs or blocks that came up. It’s important to note them and be aware of them because they will slow you down or stop you entirely from reaching any of those numbers.

Once you see them and see they are beliefs or ideas rather than an absolute truth, you can start the journey to changing them.


What Do You Do Once You Have Your Three Numbers?

Let’s say your three numbers are

Basic Living Costs – £2,500

A Wonderful Life – £85,000

Financial Independence – £650,000


You choose the level you play at. There is freedom at every level if you design your life in the right way.

If you build the right skills, knowledge and network, you have freedom and reassurance in the knowledge you can always make your basic living costs whatever happens.

If you learn how to build high-value skills and sell high priced services, you can have freedom and reassurance in the knowledge that you can make the money you need to have a wonderful life.

If you save the money needed to have financial independence, you have the ultimate freedom.

Choose a level. When you achieve that, work to the next level if that is what you want for your life.


What are your three numbers? What are your doubts and fears saying? What’s going to hold you back from achieving one or more of these numbers?


Love Ruth