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Chapter
3

Calculate how much you need to live on

Based on the information you've gathered in the past two steps, we’re going to help you determine your ideal salary and your minimum salary — both will help you set a freelance income goal that’s aspirational, while still being practical.

  • Your minimum salary is the minimum amount you need based on the total expenses you found in step 1 and needs from the last step.

  • Your ideal salary is the amount you need to live comfortably and happily, based on the minimum salary plus any "wants" from the last step. This is an aspirational number to keep you inspired and focused while working. In this step, you’re going to look at both these numbers. 

Create an income range 

These two numbers will help to determine the amount you need to save before taking the plunge into freelancing. It’ll also give you an estimate of how long it may take to be financially stable as a freelancer. With this number, you can create a realistic plan for transitioning into full-time freelancing and financial security. 

To find your minimum income: 

  1. Take everything you highlighted in yellow in the last exercise and copy it under the minimum expenses chart.

  2. The chart will automatically bring down your expenses from step 1.

  3. It’ll add that number to the "needs" that you copy and pasted.

  4. And give you your minimum annual income and minimum monthly income. 

To find your ideal salary, add in your “nice to haves,” or the items highlighted in pink. This is how much you would ideally like to make to live your life. Remember, these numbers are not set in stone, so feel free to move things around as you see fit.

To find your ideal income: 

  1. Take everything you highlighted in pink in the last exercise and copy it under the nice-to-have expenses chart.

  2. The chart will bring down your expenses from the last exercise

  3. It’ll add that number with your nice to haves that you just brought down.

  4. And give you your ideal annual income and ideal monthly income.  

If these numbers are drastically different, don’t worry! This should be a flexible range that encompasses both the cost of living and the amount of income you want to strive for. 

Recap

  • Calculated your minimum income, or the amount you need to keep a roof over your head.

  • Added your nonessential expenses to your minimum income to get your ideal salary or the amount you need to make to live comfortably.

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