Where do I post. I am lost on Chapter 37?

[alex1000]

Step 1 and 2. ??? Define the car, step 1. Ok, any Toyota 25,000 a year or less. Monthly cost of maintenance but I am not listing the purchase price in step 1 or 2?

3 cars maintenance cost is 2000 month.

Step 1, list the total purchase cost of the items. Okay.

In step 2, list the monthly cost for each (this maintenance cost, taxes and insurance). Okay.
$10,000. But the $10,000 is not buying the 3 cars, house, cabin, it is just paying taxes and maintenance on it. Okay.

Next, your monthly allowance and unknowns. Lifestyle cost is 10000. Adding onto it 4000 a month, which is Allowances. Gross plus Lifestyle Cost is 14000 a month. This is called Gross Living Cost in the book on p. 357.

What is throwing me is that this 14000 a month represents maintenance cost, not purchase cost. Taxes, utilities, maintenance, insurance, etc. I didn’t see monthly payments or pay all cash for the car or house. ( I paid $1900 all cash for a house in 1990 and lived in it for almost 20 years).

So the book says Gross Living Cost is $14,000 a month. Divide the Gross Living Cost by .60. This accounts for (income) taxes. This is Step 2. I still don’t know about the 7000 a month for 3 cars and a house. Should I assume the 7000 is paying the mortage or rent, and the rental or monthly payment of the car is in that 7000? Monthly cost for each? I guess it is?

Lifetsyle cost, gross living cost, net living cost. Three costs.

I am lost here.

Chapter 1 to 36 makes sense. The metaphors and the road is described nicely.
Chapter 37, I am lost in the numbers. Here, for me, the numbers go “off the road”.

 

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[alex1000]

Maybe I’ll just skip ahead to 4 and not worry about 1 to 3 in ch 37.
Monthly cost, but not purchase price in step 2?
Monthly allowance
Then gross living cost.
Then net living cost?

Step 3. Money system target and business system target. This won’t make sense until step 2 makes sense.

It’s all based on net living cost.

99.9 pct of book from chapter 1 to 36 makes a lot of sense to me. This chapter is not mathematically clear to me. I’ll just figure 2 used cars and a house in Hawaii. But the formulas are beyond me.

I love just have to skip to 4 and build the money, maybe hire a virtual assistant to help me calculate the numbers later. Thanks.

 

[alex1000]

Maybe I’ll just skip ahead to 4 and not worry about 1 to 3 in ch 37.
Monthly cost, but not purchase price in step 2.
Monthly allowance
Then gross living cost.
Then net living cost?

Step 3. Money system target and business system target. This won’t make sense until step 2 makes sense?

It’s all based on net living cost.

99.9 pct of book from chapter 1 to 36 makes a lot of sense to me. This chapter confused about it. I’ll just figure 2 used cars and a house in Hawaii. But the formulas are beyond me.@

I love just have to skip to 4 and build the money, maybe hire a virtual assistant to help me calculate the numbers later. Thanks.

I am lost in the numbers. I will go with part 4 of this chapter. That is simple enough for me to understand.

From previous chapters, I know there is gross monthly profit and asset value when you sell.
I will add the things incrementally now. I have 2 cars now.

Have social security, so I just need to ramp profits up to 10k plus a month and asset sale of 2 to 5 million in 3 or 4 years. The formulas throw me. Don’t understand.

 

[alex1000]

I am lost in the numbers. I will go with the CORE in part 4 of this chapter.
From previous chapters, I know there is gross monthly profit and asset value whe; you sell.
I will add the things incrementally. Got 2 ok cars now. On social security, so I just need to ramp profits up to 10k plus a month and asset sale of 2 to 5million in 3 or4 years. the formaulas throw me. Don’t understand.

As a writer, I would rewrite this and make it crystal clear.

 

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[ChrisV]

 

[Ismail941]

I think you are trying to figure it out

See This Thread and Check out the MS Excel doc file:

GOLD! - HOW TO: Understand Fastlane Business Mathematics

Hey everyone, One of my favorite chapters of the TMF book, is Chapter 37, titled “Give Your Road a Destination”. It really made me think about the amazing possibilities that can be accomplished once you have a rock-solid business (following the CENTS commandments of course). But one thing I see...

www.thefastlaneforum.com

 

[mve0991]

There is a nice little ‘Edit’ button available below each of your posts and maybe you can immediately formulate your question a little bit more clearly.

 

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[alex1000]

As a writer, I would rewrite this and make it crystal clear.

I read step 4. TD Ameritrade starts ETFs for 0 minimum. But I don’t have my LLC of first business setup yet. Maybe I’ll do Chapter 37 backwards. Start the ETF first, then hire a virtual assistant to figure out steps 1 to 3.

 

[alex1000]

There is a nice little ‘Edit’ button available below each of your posts and maybe you can immediately formulate your question a little bit more clearly.

If I edit what I write, I’ll have a book. Good idea!

 

[alex1000]

Maybe I’ll just skip ahead to 4 and not worry about 1 to 3 in ch 37.
Monthly cost, but not purchase price in step 2.
Monthly allowance
Then gross living cost.
Then net living cost?

Step 3. Money system target and business system target. This won’t make sense until step 2 makes sense?

It’s all based on net living cost.

99.9 pct of book from chapter 1 to 36 makes a lot of sense to me. This chapter confused about it. I’ll just figure 2 used cars and a house in Hawaii. But the formulas are beyond me.

I love just have to skip to 4 and build the money, maybe hire a virtual assistant to help me calculate the numbers later. Thanks.

Ok, I am trying to simplify this mathematical double barreled thing that I don’t understand.

I want a $25 000 Toyota every year. $1000 a month food. $800 a month spending money only.
No house, no mortage. $1200 a month rent. How does the math look for this?

4 money items only.

I spend 7 days reading 36 chapters and I was psyched reading it. Now, in chapter 37, I am thinking, wow, where does this math go? Still no business, I will create that. But if I don’t understand the 2 equations he’s talking about, then .... ?

 

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[alex1000]

Ok, I am trying to simplify this mathematical double barreled thing that I don’t understand.

I want a $25 000 Toyota every year. $1000 a month food. $800 a month spending money only.
No house, no mortage. $1200 a month rent. How does the math look for this?

4 money items only.

I spend 7 days reading 36 chapters and I was psyched reading it. Now, in chapter 37, I am thinking, wow, where does this math go? Still no business, I will create that. But if I don’t understand the 2 equations he’s talking about, then .... ?

If you can explain the math to me, it will make sense.

25000 a year for cars.
12000 a year for rent.
9600 a year spending.
12000 a year food.

60K / .6 = 100k or 8333 a month?

Have to wing it. I don’t understand the 2 barrel equation of Money System Target and Business system target. ???

 

[alex1000]

I think you are trying to figure it out

See This Thread and Check out the MS Excel doc file:

GOLD! - HOW TO: Understand Fastlane Business Mathematics

Hey everyone, One of my favorite chapters of the TMF book, is Chapter 37, titled “Give Your Road a Destination”. It really made me think about the amazing possibilities that can be accomplished once you have a rock-solid business (following the CENTS commandments of course). But one thing I see...

www.thefastlaneforum.com

I will look at it. Still not making sense. My momentum with the book was first 36 chapters, fast and on the road, and then chapter 37. Off road now.

 

[alex1000]

I will look at it. Still not making sense. My momentum with the book was first 36 chapters, fast and on the road, and then chapter 37. Off road now.

Motivation is there in the book.
Math is not there.

 

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[Primeperiwinkle]

Ironically this chapter is about financial literacy... but the quote at the beginning of the chapter is what floored me. Those quotes were so intense.

The first goal is to assess your monthly needs.


1)Define the Lifestyle: What do you want? 2)Assess the Cost: How much do your dreams cost?
3)Set the Targets: Set the money system and business income targets.
4)Make It Real: Fund it and open it!
~

If you need 60k a year, then you’ll need to make 5k a month.

60 divided by 12 = 5

Does that help?