How to Calculate Your Financial Freedom Number

Episode Summary

Do you know your business Freedom Number, or are you just guessing? To understand why this matters, let’s look at a simpler scenario: When you pack for a seven-day trip, how many pairs of underwear do you bring?

Seven? Nine? Fourteen?

It sounds like a funny question, but the answer usually reveals a deeper truth about how we handle uncertainty. Most people pack way too much because they are afraid of running out. They are guessing rather than calculating.

Most entrepreneurs run their businesses the exact same way.

If I asked you right now, “How many units/deals/sales do you need to make this month to cover your lifestyle?” would you have an exact number? Or would you give me a vague answer like, “As much as possible” or “Whatever my corporate salary was”?

If you don’t know the number, you are just guessing. And when you guess, you stay trapped in the “Messy Middle”—overworked, stressed, and unsure of your progress.

In this episode of Fix My Business, we are moving away from emotion and moving toward math. I’m breaking down the exact formula I used to leave the corporate world behind. We call it The Freedom Number.

In this episode, you’ll discover:

  • The “Underwear Theory”: Why over-preparing is a symptom of not knowing your numbers.
  • The Commodity Trap: Why chasing a “big pile of money” is the wrong goal—and what to chase instead.
  • The Freedom Formula: A step-by-step guide to calculating your Personal Comfort Number and reverse-engineering your sales goals.
  • Emotional vs. Mechanical: How to silence your inner critic by turning your business into a simple math problem.

It’s time to stop hoping for the best and start calculating your path out.

Notable Quote:

“The plan stops being emotional. It becomes mechanical. And that’s when business gets fun.” — Scott Todd

Full Transcript

You’re packing for a seven-day trip.

How many pairs of underwear are you packing?

There’s no wrong answer—but there is a funny one.

Earlier this year, a trend on social media had people asking this same question before trips. The answers ranged from zero to twenty-one, sparking a lot of laughter (and a few raised eyebrows).

But that simple question got me thinking about business—and specifically, real estate investing.

When I ask investors, “How much do you need to make per month to live comfortably?” the responses are just as varied. Some don’t know. Some guess. Few calculate.

That’s where the freedom number comes in—the specific number of units, deals, or notes you need to reach financial independence.

How I Found My Freedom Number

In my first year as a real estate investor, I didn’t have a clear number either. My only goal was to replace my corporate salary. But when I finally sat down and did the math, I realized I needed exactly 113 units to hit my target. That number changed everything.

How to Find Yours

Here’s how to find yours.

  1. Figure out your personal comfort number. That’s the amount of money you need to live on—your essentials, not your caviar dreams.
  2. Figure out your profit margin. What is the percentage you keep after expenses are paid?
  3. Figure out your average income per deal, note, or unit. Whatever your “unit” is, find the average.

Then divide your comfort number by your profit margin, and divide again by your income per unit. That’s your freedom number—the number of deals or units you need to be free.

Key Takeaway

Stop guessing. Start calculating. The math always works.

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