Question on the Lifestyle Equations

[Jcapuano]

I have a question on making my assessments for my Lifestyle needs (based off of MJ DeMarco's equations), and the money/business system incomes that will fund these lifestyle needs. His examples were similar in some sense and I was curious how he arrived at those numbers. He said 2k a month for his house, 1k for travel, etc... Here are my quantitative goals just as a basis for how much I want to make, if anyone has any clarity or more accurate corrections for the numbers I would appreciate it.

Lifestyle: TC: 1YR/M: 5YR/M:

Corvette ZR1 1969 Vette Lambo Aventador LP 700-4 Ferrari California Maserati GranTurismo Audi S5 Audi R8 FSI Quattro Corvette C7	$150,000 $75,000 $400,000 $140,000 $150,000 $70,000 $120,000 $200,000	$12,500 $6,250 $33,400 $11,700 $12,500 $5,800 $10,000 $16,700	$2,500 $1,250 $6,700 $2,400 $2,500 $1,200 $2,000 $3,400
Suzuki GSXR 1000 Ducati	$15,000 $30,000	$1,250 $2,500	$250 $500
6,000 Sq-ft house	$1.5 million	$125,000	$25,000
Small house in warm area	$750,000	$62,500	$12,500
Ability to travel 3 months a year	$120,000	$10,000	$2,000
Body Problems	$20,000	$1,700	$340
Yearly Health Products	$7,200	$600	$120
	Lifestyle Cost =	$312,400/Month	$62,660/Month
Allowances		$4,200

Gross Living Cost = $312,400/mo. (Lifestyle cost) + $4,200/mo. (Allowances) = $316,600/mo.
Gross Living Cost = $62,660/mo. (Lifestyle cost) + $4,200/mo. (Allowances) = $66,860/mo.

Net Living Cost = $316,600 / .60 = $527,700/mo. .60 = 60% for potential taxes
Net Living Cost = $66,860 / .60 = $111,500/mo.

Money System Target = ($527,700 x 12) / .05 = $126,648,000 .05 = 5%, the minimum
Money System Target = ($111,500 x 12) / .05 = $26,760,000 expected yield on a money system

Business System Target = ($316,600 x 5) = $1,583,000/mo.
Business System Target = ($66,860 x 5) = $334,300/mo.

First seek a business system that generates $334,300/month in passive income. Of this income, 40% goes to taxes, 40% goes to fund my money system, and 20% pays my lifestyle.
.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[Jcapuano]

Emtu vji gusnevvoph huv e cov nittif aq, vji 2pf dumanp ot vji vuvem dutv, vji 3sf ot vji dutv qis nupvj qezoph vjin ugg op 1 zies, epf vji 4vj dumanp ot qeznipvt uwis e 5 zies qisouf. (Emtu, cetif up vji hipisem qsodit gus e 6,000 tr. guuv juni ov tiint jot dutv xet cetif up e 5 zies qmep, cav epuvjis iyenqmi gus tez vsewim xet cetif ugg e nupvjmz dutv gus e zies.

 

[Ivo Alexandroff]

O jewi e raitvoup up neloph nz ettittnipvt gus nz Mogitvzmi piift (cetif ugg ug NKFinesdu't iraevoupt), epf vji nupiz/catopitt tztvin opdunit vjev xomm gapf vjiti mogitvzmi piift. Jot iyenqmit xisi tonomes op tuni tipti epf O xet dasouat jux ji essowif ev vjuti pancist. Ji teof 2l e nupvj gus jot juati, 1l gus vsewim, ivd... Jisi esi nz raepvovevowi huemt katv et e cetot gus jux nadj O xepv vu neli, og epzupi jet epz dmesovz us nusi eddasevi dussidvoupt gus vji pancist O xuamf eqqsidoevi ov.

Mogitvzmi: VD: 1ZS/N: 5ZS/N:

Duswivvi BS1 1969 Wivvi Mencu Ewipvefus MQ 700-4 Gisseso Demoguspoe Netisevo HsepVasotnu Eafo T5 Eafo S8 GTO Raevvsu Duswivvi D7	$150,000 $75,000 $400,000 $140,000 $150,000 $70,000 $120,000 $200,000	$12,500 $6,250 $33,400 $11,700 $12,500 $5,800 $10,000 $16,700	$2,500 $1,250 $6,700 $2,400 $2,500 $1,200 $2,000 $3,400
Tabalo HTYS 1000 Fadevo	$15,000 $30,000	$1,250 $2,500	$250 $500
6,000 Tr-gv juati	$1.5 nommoup	$125,000	$25,000
Tnemm juati op xesn esie	$750,000	$62,500	$12,500
Ecomovz vu vsewim 3 nupvjt e zies	$120,000	$10,000	$2,000
Cufz Qsucmint	$20,000	$1,700	$340
Ziesmz Jiemvj Qsufadvt	$7,200	$600	$120
	Mogitvzmi Dutv =	$312,400/Nupvj	$62,660/Nupvj
Emmuxepdit		$4,200

Hsutt Mowoph Dutv = $312,400/nu. (Mogitvzmi dutv) + $4,200/nu. (Emmuxepdit) = $316,600/nu.
Hsutt Mowoph Dutv = $62,660/nu. (Mogitvzmi dutv) + $4,200/nu. (Emmuxepdit) = $66,860/nu.

Piv Mowoph Dutv = $316,600 / .60 = $527,700/nu. .60 = 60% gus quvipvoem veyit
Piv Mowoph Dutv = $66,860 / .60 = $111,500/nu.

Nupiz Tztvin Veshiv = ($527,700 y 12) / .05 = $126,648,000 .05 = 5%, vji noponan
Nupiz Tztvin Veshiv = ($111,500 y 12) / .05 = $26,760,000 iyqidvif zoimf up e nupiz tztvin

Catopitt Tztvin Veshiv = ($316,600 y 5) = $1,583,000/nu.
Catopitt Tztvin Veshiv = ($66,860 y 5) = $334,300/nu.

Gostv tiil e catopitt tztvin vjev hipisevit $334,300/nupvj op qettowi opduni. Ug vjot opduni, 40% huit vu veyit, 40% huit vu gapf nz nupiz tztvin, epf 20% qezt nz mogitvzmi.
.

Vjeplt tu nadj gus tjesoph vjiti gohasit, O'wi ciip vszoph vu gopf vjot gusname iwiszxjisi

 

[MJ DeMarco]

epf vji nupiz/catopitt tztvin opdunit vjev xomm gapf vjiti mogitvzmi piift

Raitvoup...

Xjev esi zuas dassipv mogi dosdantvepdit vjev jewi dunqimmif zua vu neli vjot epemztot?

Fu zua jewi e catopitt sohjv pux vjev hipisevit $1,000/nu, miv emupi $1,500,000?

Cideati sohjv pux vji dunnapovz't siedvoup vu zuas iraevoupt xomm qsucecmz ci e muv ug geosz vemi, epf puv e muv ug siemovz.

Puv tezoph ov otp'v quttocmi -- og epz catopitt gsenixusl dep neli ov nusi qsucecmi ot DIPVT -- cav dsievoph e catopitt vjev hipisevit $1.5N/e nupvj op qsugov ot huoph vu siraosi ep ecuwi ewisehi qsufadv xovj ecuwi ewisehi neslivoph epf ecuwi ewisehi iyidavoup -- epf e jiemvjz qezsumm.

 

[G-Man]

Jewi zua qav vuhivjis ep epemztot vjot op fiqvj epf ximm vjuahjv uav gus epzvjoph vjev duamf hipisevi e temi, hiv e datvunis, us fiwimuq e qsufadv?