3 Steps to Create a Lifestyle Budget (And Why It’s the Key to Freedom)

You likely don’t need as much as you think you do…

My husband & I enjoying life in the Andaman Ocean! (With Changs!)

"What would we do differently if we had a million dollars?" I mused.

My husband & I were floating in the Andaman Ocean, cold Chang beers in hand, watching the sun set over limestone cliffs.

Reading each other’s minds, in unison we both said;

"Nothing!"

Here we were, living what felt like a millionaire lifestyle, for less than $3,000 a month.

Beautiful apartment, eating out whenever we wanted, weekly massages, endless beach days, and plenty left over for adventures.

That's when it really hit me. We often massively overestimate what we need to live our dream life.

We think we need to build huge businesses or gather massive followings, when really, we just need to get crystal clear on our actual numbers.

I've seen this countless times. A friend of mine used to house-sit her way around South America with her husband for $2,000 a month.

Another couple I know travelled the world on a boat for less than $4,000 a month.

The real numbers are often far more attainable than we presume. But you need to know YOUR number.

Knowing your exact number changes everything because:

• You stop overestimating what you need (and delaying your dreams)

• You can choose the right business model/side hustle to hit that specific target

• You make better decisions about opportunities (saying no to things that distract from your goal)

• You recognize when you've hit your target (instead of endless chasing "more")

• Your brain starts spotting specific opportunities to reach that exact amount

• You can create a realistic timeline for your escape

• You stop being paralyzed by vague money goals and start taking focused action

Here's exactly how to figure it out:

Step 1: Get Real About Your Dream Lifestyle Costs

Don't guess - research. Here's how:

• Join Facebook groups for expats in your target locations

• Message 5 people already living your dream lifestyle

• Ask specific questions about monthly expenses:

  • How much is a nice 2-bed apartment in your area?

  • What's your monthly food budget?

  • How much do you spend on entertainment?

  • What unexpected costs should I plan for?

Pro Tip: Create a spreadsheet of responses. You'll start seeing patterns in the real costs of different lifestyles.

Step 2: Build Your Freedom Budget

Complete a freedom budget;

Essential tips when completing your budget:

• Always overestimate costs slightly

• Include an emergency fund contribution

• Factor in healthcare and insurance

• Add travel costs between locations

• Include costs back home (storage, etc.)

• Don't forget about taxes

• Build in a learning/growth budget

Pro Tip: Create three versions - bare minimum, comfortable, and luxury. This gives you staging posts for your journey.

Step 3: Calculate Your Monthly 'Freedom Number'

Take your total monthly budget and:

1. Add 20% for unexpected opportunities

2. Add another 10% for inflation/currency fluctuations

3. Round up to the nearest $500

This is your real Freedom Number - the monthly income you need to start living your dream life.

Examples of Potential Freedom Numbers:

• Solo nomad in Southeast Asia: $1,500-2,500/month

• Couple house-sitting in Europe: $2,500-3,500/month

• Family of 4 in Portugal: $4,000-5,000/month

• Luxury nomad splitting time between major cities: $8,000-10,000/month

Why Having This Kind of Clarity Changes Everything

Once you know your exact number, something shifts.

Instead of chasing vague "success," you can focus on specific strategies to generate the amount you need to live your ideal lifestyle.

My Thailand realization completely changed my approach to business.

I went from focusing on money to focusing on freedom!

While we did go on to build a million-dollar business, our goals were on creating lifestyle businesses that we enjoyed, and that would give us the freedom to put our lifestyle first and explore the globe.

Knowing our exact monthly freedom number helped us make strategic decisions about which opportunities to pursue (and which to avoid!)

Action Steps:

1. Complete the budget template today

2. Write your Freedom Number somewhere visible

3. Start researching specific ways to generate that exact amount

Remember: You probably need less than you think to start living your dream life. But you won't know for sure until you do the math.

Don’t skip it.

Get absolute clarity from Day 1 and start a habit of specificity which will undoubtedly accelerate your plans!

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Ready to Start Your Nomadic Lifestyle? Here’s How I Can Help You:

1. Explore my blog, The Working Traveller
   Your go-to resource for nomadic travel tips, destination inspiration, and practical advice on making money on the road.

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