One of the things that we have to do with our goals is to make them ACTIONABLE.
A goal that I have is to have a new cash position of +15k in about 70 days. I have a lousy cash position right now, it’s not defensible for the income I’m allowed to earn. It’s not respectful to do this with your money.
I have to earn $15k over expenses in 70 days, and let’s look at some real numbers:
After everything, my take home usually winds up being something like 48% of what I earn.
What I earn is something like 60% of what I bring in.
My net expenses are about 3100/month, all in.
So, kids, this means that I need to have: 6200 +15k = 21200 net.
Divide that by 48% to account for 401k (not cash, but 12% of my income goes directly to retirement), and that’s a total of 44,166.
Divide that by .6 and were at 73,611. Thats the fee income I need in 60 days.
Now, if i got NO new business, i’d have something like 15% of that done; I have a reasonable-if-not-perfect-pipeline.
My average loan has been worth about 3400 bucks lately. (Thanks for having an assistant).
So, 73611/3400 = 21 loans; = 44166 in earned income = 20758 in net income.
Right now, i think I have about $10k of that earned by doing very little. I will probably earn 25k of that without a significant increase…but $73k in fee is doable. I have most of september, all of october, and a lot of November to make this happen. That’s really, only 24,3 a month, or just a 40% increase in my 3 month average.
Doable.
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