Who is Sandy MacKay?
I help Canadians achieve financial freedom through real estate.
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I never used to be what I am today.
I’m sure you aren’t the same person either as you were last year or even last month.
Which direction are you headed in though? And how do you ensure your mind is empowered to push you in the right direction?
I shared a story this week with our real estate team about the importance of knowing your number.
Numbers are important in many ways, and one reason I’ve found them to be important is in guiding us to the destination we intend on reaching.
This is the most obvious yet overlooked element of real estate investing and wealth building. People don’t take the time to identify the number they are working towards.
If your financial goal is to become financial independent, then it only makes sense to identify the number you need to achieve financial independence.
Still, people skip this step and often pursue investments that take them further away from their desired outcomes.
I say this from experience. I was that person.
I invested in properties, and with partners that didn’t help me towards my number. And I’ve been revamping my investments over the past 2 years to make up for this mistake.
Once you know that you need $100,000 a year to fund your lifestyle then your financial strategy should be about achieving that number.
My strategy involves 5 levels of financial independence which I learned from the book MONEY Master the Game by Tony Robbins.
In it he recommends these 5 levels be the following:
Financial Security – all life essentials needs are covered through passive income
Financial Vitality – all life essentials + half of vacations & other needs are covered through passive income
Financial Independence – all life essentials + vacations + other needs + investments/savings are covered through passive income
Financial Freedom – all life essentials + vacations + other needs + investments/savings + top 3 luxury wants are covered through passive income
Absolute Financial Freedom – Everything you could ever need and want in life is covered by passive income
You can use my Financial Freedom Calculator to discover what your numbers are.
Empowering Your RAS
“What you focus on grows, what you think about expands, and what you dwell upon determines your destiny.” – Robin Sharma
Have you heard of the Reticular Activating System (RAS)?
Your body has a really cool network of neurons called the RAS.
Your RAS handles 4 main things:
- Ability to focus
- Fight-flight response
- How we perceive the world
Your RAS controls what you perceive in your consciousness, acting as a gatekeeper of information.
Put more simply, your RAS acts as a filter of information so that your conscious brain only receives what is important to you.
AND it does this without you even being aware of it!
You know when you buy that new car or those new shoes, or the new watch, and all of a sudden you see them everywhere. They were all there before, but your RAS didn’t view them as important, so it didn’t let them in.
The point of knowing your number is to empower your RAS to find solutions to achieving your number.
If you don’t have clarity on your number, then your RAS doesn’t know which information to allow in. It allows in a whole mix of crap that doesn’t direct you towards your number.
Clarity on your number will empower your RAS.
If you have clarity on achieving a net worth of 5 million dollars, so that you can invest it into a low risk investment that returns 5% a year and earn $250k passively, then your RAS is going to be empowered to guide you there.
Numbers to Get Clarity On
Your RAS understands specifics and it understands numbers.
Financial Freedom Numbers:
1. How much does your current lifestyle cost?
2. How much will your lifestyle cost in the future?
3. How high a net worth do you need to passively fund your lifestyle, or your 5 levels of financial freedom?
Financial numbers are amongst the easiest to figure out. That part of our lives is all about numbers anyways.
There are other areas to work on though to ensure you’re living a well rounded life of purpose.
The 4 other areas of life that you should consider putting some numbers around are physical, spiritual, mental & social.
If you don’t have clarity on your financial world though, then I recommend starting there.
So many people go through their entire life without ever activating their RAS around their financial freedom number. And they incur a lifetime of financial stress as a result.
Empower your RAS today and start living a life on purpose.
Until next week! ✌🏻
– Sandy Mackay