How many of us would love to have a pile of money building up for us without even looking at it? Yes, it may sound incredible, but it can be done. In fact, I started doing it a couple of years ago and ever since then my money has built up automatically. The best part about it is that I did it with old money – money that was already coming in – and it didn’t require any additional money out of my pocket at all.

Let me show you how

Now, the first thing we need to do is become aware of the money we have. That means we have to take inventory of our monthly income and expenses and perform a basic calculation. If you have a spreadsheet program such as Microsoft Excel that will be a great tool to use for this exercise. Just mirror the format below utilizing your spreadsheet software. If you don’t, then you can list them and do it by hand like your great-grandparents used to do. Create two columns. An income column and an expense column:

In your income column, write your monthly income. For many of us, that will simply be the monthly check from the j-o-b. If you have additional sources of income such as stock dividends or cashflow from other adventures, list it in the income column as well. Add those numbers up to arrive at your total. This is your total monthly income.

In your expense column, list all of your monthly expenses: grocery costs, electric bill, credit cards, gasoline for the Ferrari, mortgage, rent, cell phone, everything. Write each one of them line by line underneath your expenses. Add up each one of those numbers and write your total at the bottom. This is your monthly total expense.

The Magic Number

Now, this is how you get to the magic number. It’s a really simple equation but it will show you the number that will make your life much easier. All you have to do is this; subtract your total expense from your total income:

Circle the magic number or highlight it! That number has worked wonders for me like you wouldn’t believe! I get excited just seeing it again.

Now, no magic is magic unless it does something special, right? So here’s what you can do with the magic number and what the magic number will do for you.

Every month, automatically send the magic number to a separate bank account. Do not spend this money and do not touch this money. It is to invest in your financial future. This takes discipline… so do it anyway!

Set this up through an automatic pay allotment and have it deducted off of the top. You can do this through your payroll office or via your online banking tools.

The magic number will go straight to you and you will not have to lay a finger on it as the cash builds up in your financial freedom account. This carries out the most fundamental financial principle that says, “Pay yourself first”. This is critical and without it, you can guarantee that you will have a bumpy ride to nowhere financially. Work with the magic number, because…

It works

And I’m living proof of the fact that it works! I’ve seen it work for other people too and I know for a fact it work wonders for you. Here is a list just a few of the amazing things that it did for me:

-      Provided an emergency expense cushion to ease the financial stress during tough times

-      Paid off all debts (cars, loans, credit cards)… yes… all… and I was barely 25 years old

-      Provided additional money to invest

-      Alleviated shoulder pain and improved eyesight

-      Added a little “pep” in my step

And these are just a few examples! Since you’ve figured out your magic number, you can experience the same benefits and more. Overtime your magic number will build and it will provide the means to help you break out of financial bondage. Are you ready? Let’s start our path to financial freedom right now!