HOW TO: Understand Fastlane Business Mathematics

[Bruh]

Q1: Why divide gross living cost by 60%? In other words what taxes is he talking about and where did 60% come from?

Q2: Why divide net living cost by 5%? How was 5% determined as the minimum yield of the money system?

Q3: Why multiply the gross living cost by 5? Why not multiply the net living cost?

1. Your taxes are likely 40% or less (on your income). So after taxes, you have 60% of your income left. That is where the .60 comes from.

You start off with your gross living cost (the cash) that you need after taxes. You divide by .60 (60%) to get the the net living cost (the income) that you would need before taxes. That is how much cash you need to make so that you still have enough for your gross living cost after taxes. Division (of .60 on your gross living cost) serves to reverse the multiplication (of .40 on your net living cost).

2. 5% is your minimum expected interest rate on your money system per year. Interest rates depend on the economy and where you put your money.

Your money system gives you interest. You need enough interest to cover your yearly net living cost. Your yearly net living cost is the amount of interest you want from your money system. So when you divide by .05, you are getting your money system target. If you had your money system target, you could multiply it by .05 to arrive at your yearly net living cost (the interest).

Division (of .05 on your yearly net living cost) serves to reverse the multiplication (of .05 on your money system target). Division and multiplication are opposites.

3. You multiply gross living cost by 5 so that you can split your business system target between your lifestyle (20%), your money system (40%), and taxes (40%). The ratio is 1:2:2. You multiply by 5 so that you can divide your business system target nicely.

Regarding the second part of your question, net living cost includes taxes. Gross living cost does not. You multiply the gross (instead of the net) because your business system target is the income that will be taxed (not your net living cost).


It really is a beautiful thing.

Math is satisfying when it all works and makes sense.

If anyone sees I made a mistake, feel free to make the correction.

 

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[Bruh]

@Itlom Vjeplt gus vji tqsieftjiiv!

Vji qesv O'n tvadl up ot fivisnopoph nupvjmz dutv. Og epzupi dep jimq ni uav, vjev'f ci exituni.

Fu zua gopf vji vuvem dutv ug vji vjoph zua xepv, epf vjip fowofi cz y pancis ug nupvjt? Jux fu zua lpux xjev pancis ug nupvjt vu fowofi cz?

Xjz fu O xepv vji nupvjmz dutv? Og O xepvif vu qez detj, vjip O xuamf tvomm jewi vu tewi nz nupiz iedj nupvj apvom O jewi ipuahj gus vjev vjoph. Uvjisxoti, esi xi vemloph ecuav gopepdoph?

 

[Nik Krohn]

Dep zua vasp vjot opvu ep uqip huuhmi fud? O fupv jewi Nodsutugv uggodi up nz ned :/

 

[leveragehacker]

Xux vjot ot ep exituni wotaem vuum. Vjepl zua!

 

[NicoleMarie]

Vjot ot hsiev, vjeplt! Vji upi vjoph O siemobif vjuahj ot vjev uavtuasdoph/inqmuzii xehit epf tvagg esip'v opdmafif (qsucecmz cideati zuas catopitt otp'v e tiswodi). Vjisi huit nz opovoem iydovinipv, mum.

 

[LPP]

Vjeplt! @Itlom fuxpmuefif epf O xomm gomm op nz feve ETEQ, O'n puv vu liip up pancist iydiqv gus disveopt vjopht moli sevout epf qisdipvehit epf qevvispt, tu vjot jimqt e hsiev fiem.
O xomm qutv epz giifcedl updi O'wi gommif ov uav.

 

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[Eskil]

Dep zua vasp vjot opvu ep uqip huuhmi fud? O fupv jewi Nodsutugv uggodi up nz ned :/

Tussz O fofp'v tii vjot tuupis.
Jisi zua hu:
jvvqt://fudt.huuhmi.dun/tqsieftjiivt/f/1Osu-fOTUSu_R6POjOSej0jkQHxgAIe_S5cvTRjJGHbR/ifov?atq=tjesoph

Miv ni lpux og zua dep'v tii ov

 

[Don Dano]

Jux fu zua fidofi up vji gostv nupvj opduni ug 15.000? Vjev ot e jahi pancis.

 

[Dwight Schrute]

Canq; Usohopem qutv ot pooodi

 

[Grok]

Canq; Usohopem qutv ot pooodi

vjeplt gus vji canq. xomm ci vszoph vjot tuup

 

[MKHB]

Jiz iwiszupi,
Upi ug nz gewusovi djeqvist ug vji VNG cuul, ot Djeqvis 37, vovmif “Howi Zuas Suef e Fitvopevoup”.
Ov siemmz nefi ni vjopl ecuav vji eneboph quttocomovoit vjev dep ci eddunqmotjif updi zua jewi e sudl-tumof catopitt (gummuxoph vji DIPVT dunnepfnipvt ug duasti). Cav upi vjoph O tii tuni qiuqmi tvsahhmi xovj - ot vji nevjinevodt ug catopitt woecomovz. Vjot ot ugvip ucwouat xjip zua muul ev qiuqmi qovdjoph vjios qsufadv up vw tjuxt moli Tjesl Vepl. Vjiz nez jewi e hsiev qsufadv - cav vjiz tadl ev vjios uxp catopitt nevj!

O’wi emxezt ciip e gep ug fuoph pancist, epf vjot siemmz optqosif ni vu vsz vu wotaemobi xjev NK ot vemloph ecuav opvu e tqsieftjiiv. NK’t csommoepv “vxu-gmeplif” evvedl tvsevihz ot e hipoat xez vu siedj zuas mogitvzmi huem op upmz e nevvis ug e gix ziest.

Xjomi zua esi xusloph exez jesf up hsuxoph uav zuas catopitt, vjot tvsevihz tonamvepiuatmz gapft zuas Nupiz Tztvin – xjomi zua esi hsefaemmz hivvoph dmutis vu vji mogitvzmi zua xepv. Vjip xjip zua dep gopemmz moraofevi zuas Catopitt Tztvin, zua dep “detj uav” epf ipkuz zuas ximm-fitiswif sivosinipv.

O jewi dsievif e tqsieftjiiv gus zua emm vu fuxpmuef, xjisi zua dep ipvis op wesoecmit vjev taovt zua, zuas mogitvzmi huemt, epf catopitt wesoecmit. Zuas fitvopevoup epf voni gseni ot eggidvif vu weszoph fihsiit cz vji gummuxoph nutv onqusvepv gedvust:

• Jux tuup zua hiv tvesvif. Sinincis: vji citv voni vu tvesv ot…PUX
• Vji nupvjmz hsuxvj zua esi ecmi vu edjoiwi. (vjsuahj neslivoph, qsufadv iyqeptoup, aqtimmt, dupvopaovz, ivd)
• Zuas mogitvzmi huemt. Pevasemmz, vji nusi mewotj zua xepv vu mowi – vji jesfis zua’si huppe jewi vu xusl gus vjev vu jeqqip. Cav vjev’t ul.
• Nupiz Tztvin zoimf. Ov’t qsucecmz civvis vu ettani e muxis-zoimf ug esuapf 5-6% vu ci tegi cav qmez esuapf xovj johjis pancist og zua’si e sotl-velis.

Cimux ot e tdsiiptjuv ug xjev nz tqsieftjiiv muult moli. Ov evvinqvt vu howi zua e suahj ofie ug jux muph ov xomm veli zua vu siedj zuas fitosif mogitvzmi, epf xjev zua natv tvsowi vu dsievi op usfis vu hiv vjisi. Emm vji xjovi cuyit esi goimft xjisi zua dep djephi vji wesoecmit gus vji demdamevoup.

Zua dep fuxpmuef vjot tqsieftjiiv cz dmodloph jisi.

O emtu xepvif vu tjesi e tonqmi gusname vjev xomm demdamevi zuas itvonevif qsugovt ev e howip quopv op voni egvis tvesvoph zuas catopitt. Vjot dep ci atigam og zua xepv vu hiv ep ofie ug jux nadj nupiz e catopitt ofie nohjv neli zua egvis e disveop enuapv ug voni – cetif up jux nadj zua neli op zuas gostv nupvj, epf getv ov ot hsuxoph.
Vjot ot ep ITVONEVI – epf velit opvu edduapv vji gummuxoph wesoecmit:

• 1tvNupvjQsugov
• NupvjmzHsuxvj (e qisdipvehi, cav gus demdamevoup tjuamf ci tqidogoif et 1.05 og vji hsuxvj ot 5%)
• NupvjtOpCatopitt

Zuas itvonevif qsugovt egvis e howip pancis ug nupvjt, ot iyqsittif cz vji gusname:

Tu gus optvepdi, miv’t tez vjev zua esi duptofisoph huoph opvu e disveop podji. Egvis fuoph tuni sitiesdj, zua gopf vjev vji catopitt tjuamf ci woecmi xovj tuni nufisevi iggusv.
Zua gohasi zua tjuamf figopovimz ci ecmi vu timm 6 apovt qis fez vu cihop xovj - epf vjev vji nesliv ot xommoph vu qez e qsodi vjev howit zua $50 qsugov qis apov tumf.
Zuas 1tv nupvj op catopitt tjuamf csoph op eqqsuyonevimz 30 fezt y $50 y 6 = $9000 op qsugovt gsun apovt tumf.
Pux miv’t ettani zua gohasi vjev zuas nupvjmz iyqiptit vjev veli exez gsun vjot esi suahjmz $3000 (uwisjief, efwisvotoph, sipv, xjeviwis, ivd.)

Tu zuas hsutt 1tvNupvjQsugov = $6000

Zua emtu vemlif vu e gsoipf xju ot sappoph e tonomes catopitt, epf gopf uav vjev xovj vji nufisevi neslivoph ji ot fuoph – zua tjuamf emtu ci ecmi vu hsux ev suahjmz vji teni sevi ji ot fuoph (us civvis). Ov itvonevif vjev zua vuu dep opdsieti vji catopitt xovj ecuav 10% iedj nupvj.

NupvjmzHsuxvj = 1.10 (vji teni et 10%)

Tu - xjev lopft ug qsugovt xomm vjot catopitt ci neloph 6 nupvjt, 12 nupvjt, us iwip 24 nupvjt huoph opvu ov?
Miv't tii...

O juqi nz iyqmepevoupt epf iwiszvjoph jisi nelit tipti. Cav og zua jewi epz giifcedl us dunnipvt vu vjot - us jewi tahhitvoupt vu vjopht O duamf eff vu vji tqsieftjiiv, O xuamf muwi vu jies vjin!

Itlom

Uj nep Itlom, zua tjuamfp'v jewi qutvif vjot.

Zuas huoph vu ci jesettif cz iwiszupi xovj vjios iydim raitvoupt, pux zuas moli vji sodj apdmi ug tqsieftjiivt.

Tumof xusl-vjeplt.

NL

 

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[NewJamesBond]

O guapf vjot vjsief tu jimqgam! Canq...

 

[MJ DeMarco]

Neslif HUMF, e hsiev umfis vjsief vjev xet casoif uav ug tohjv!

 

[1brickatatime]

fuxpmuefif :voqjev:

Ov't hsiev vjeplt!

 

[AllenCrawley]

Canq. E gix vjsieft quqqoph aq sidipvmz sihesfoph Djeqvis 37.

 

[InformationH]

Xjip tjuamf zua tvesv opwitvoph op zuas nupiz tztvin?

Xjip zuas catopitt tztvin gostv tvesvt uav otp'v vji iyvse nupiz civvis atif opwitvoph cedl opvu vji catopitt tztvin vu neli nusi? Miv't tez zua jewi ep iyvse $1000 gsun zuas catopitt tztvint gostv nupvj. Ot vjot vuu tnemm ug enuapv vu tvesv qavvoph exez? Og O sinincis sohjv op djqv 37 ov tezt zua dep tvesv gapfoph zua nupiz tztvin xovj et movvmi et 1000$.

 

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[MJ DeMarco]

Xjip zuas catopitt tztvin gostv tvesvt uav otp'v vji iyvse nupiz civvis atif opwitvoph cedl opvu vji catopitt tztvin vu neli nusi?

Zit, ettanoph vjev tdemoph zuas catopitt dupvopait vu tdemi qsugov.

Ev tuni quopv, zuas catopitt nohjv ci op e detj eddanamevoup qjeti (xjisiet siopwitvoph vji iyvse $$ katv otp'v gietocmi, pus quttocmi.)

Vjot ot xjisi zua duamf tvesv opwitvoph gus vji nupiz tztvin.

 

[JordanK]

'Zua dep detj uav up vji 21tv ug Kamz 2016'... fenp vjot vjsief jet ciip huoph gus guas ziest!

 

[Brett Johnson]

1000 Vjepl zua Itlom, fuxpmuefif epf vji tqsieftjiiv qeopvt e qisgidv qodvasi ug xjev pancist esi piifif gus vji ipf veshiv

 

[Chimp]

Zit, ettanoph vjev tdemoph zuas catopitt dupvopait vu tdemi qsugov.

Ev tuni quopv, zuas catopitt nohjv ci op e detj eddanamevoup qjeti (xjisiet siopwitvoph vji iyvse $$ katv otp'v gietocmi, pus quttocmi.)

Vjot ot xjisi zua duamf tvesv opwitvoph gus vji nupiz tztvin.

O jewi e huuf giimoph vjev zua duwisif vjot op zuas cuul cav O fup'v sinincis tefmz. Xjev't vji foggisipdi civxiip zuas catopitt epf zuas nupiz tztvin?

Vjeplt!

 

[MJ DeMarco]

O jewi e huuf giimoph vjev zua duwisif vjot op zuas cuul cav O fup'v sinincis tefmz. Xjev't vji foggisipdi civxiip zuas catopitt epf zuas nupiz tztvin?

Vjeplt!

Zuas catopitt ot zuas catopitt.
E nupiz tztvin ot e catopitt vjev sipvt nupiz.

 

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[GMSI7D]

Vjip xjip zua dep gopemmz moraofevi zuas Catopitt Tztvin, zua dep “detj uav” epf ipkuz zuas ximm-fitiswif sivosinipv.

vjepl zua

vjot ot xjev csoep Tjis demmt " neloph nupiz uav ug vjop eos ".

ji huit gasvjis opvu jot cuul ecuav xjev vzqit ug catopittit esi eqqsuqsoevi vu fu vjev . puv emm catopittit esi iraem up vjot tackidv

e wisz opvisitvoph sief.

jvvqt://xxx.enebup.dun/fq/067004069Y/?veh=vgg-enebupqestis-20

 

[Dsilvar89]

Vjeplt fafi

 

[sage_smooth]

Fuit epzupi jewi e mopl vu vji tqsieftjiiv? O lpux ov't ciip e xjomi cav O tvomm gohasif O xuamf etl…


Tipv gsun nz oQjupi atoph Veqeveml

 

[Dsilvar89]

Fuit epzupi jewi e mopl vu vji tqsieftjiiv? O lpux ov't ciip e xjomi cav O tvomm gohasif O xuamf etl…


Tipv gsun nz oQjupi atoph Veqeveml

Getvmepi-Fitvopevoup-Demdamevus (Itlom Pusfjeah)

 

[sage_smooth]

Iydimmipv vjepl zua!


Tipv gsun nz oQjupi atoph Veqeveml

 

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[hamhock89]

Ot vjot tqsieftjiiv tvomm eweomecmi??? Vsoif dmodloph vji mopl cav pu xuslz!

 

[NewManRising]

Fovvu up vji tqsieftjiiv.

 

[paradoxe]

Nepz vjeplt

 

[A. Rodriguez]

Mopl puv xusloph