E. 140: [Money Talk] How To Calculate Your Price To Freedom: The 50-25-25 Formula
The day I realized that we were $40K in debt was a major turning point in our business. We had maxed out credit cards, had to fire our two employees, and had to figure out a completely new plan for the business.
Changing our business model to selling intensives worked, but we were still hustling all the time, even though we were now making more than enough money to support ourselves, the business, and the life we wanted.
So why keep hustling? I was shell-shocked and scared after going so deeply into debt.
But on our first real vacation later that year, I had two very big realizations: One, I needed a plan that didn’t involve saying yes to every project and hoarding money. Because two, having plenty of cash in the bank wasn’t making me feel more financially secure than I did when we were in debt.
Which led me to two even bigger conclusions: the key to feeling financially secure wasn’t going to be cash in the bank, it was knowing that I could absolutely generate money when I want to. And, I needed to really figure out how much money we needed to live and support our business, while having the life that we wanted.
And that’s how I developed the 50-25-25 Formula for Profit and Freedom. It changed my life and I’m sharing it with you today.
Find this episode for free on your favorite podcast player.
Tune into this episode to hear:
Why growing your audience and authority is key to knowing you can generate cash when you want and need to
How I came up with the math that gave us the time and financial freedom our business was supposed to support in the first place
How the formula breaks down time and money to do you work, invest in your business, and live the life you want
Why you need to know your number and what it means to you
