This is one of the most popular topics when people come to James Hopkins Coaching.
People want to know how to effectively create “income security” for their lives, particularly as expats, while living abroad.
Now, just to be clear, we’ve helped over 500+ people create income security for their lives at James Hopkins Coaching.
This isn’t to boast or brag. But it is simply to demonstrate that we have expertise in this area and clearly understand what expats need as well as the difficulties they experience while living abroad.
Ultimately, everyone at James Hopkins Coaching has firsthand experience living abroad and understands the importance of creating income security.
So we want to be clear that when we talk about student results, we are simply using them as examples as to how the methods and processes we teach are working in their daily lives.
You might never join one of our programs and that’s not a problem at all.
But what I do care about is that you focus on what matters most to you.
And I know for a fact that if income security is on your mind, then you want to make sure you are doing everything within your power to make it real for your life.
Now, if you have read any of our previous articles, you might know that I have used this phrase “income security” before.
I use this phrase specifically because it refers to the exact needs of an individual (or family) to live in any situation they are in.
Whether that’s in your home (western country) or the country you live in abroad, the key is in understanding the income you need to live there.
Of course, a Western country is going to require a higher income to live in than a country in Southeast Asia for instance, but the rules of income security still apply.
What you want to figure out is, what is the income security that you need to live comfortably for your life?
So to do that, you need to figure out what you need to “get by” in life as well as any essentials and must-haves.
This does not include luxuries like first-class travel or fancy hotels, but rather, what do you need to live comfortably, not necessarily frugally.
So maybe you choose to live in Chiang Mai for example.
You want to calculate the amount you want to pay for the following:
Rent in a safe area – remember, you don’t need to be frugal here but doesn’t need to be a penthouse either. You can live in a very nice place for $1000 USD per month
Transportation costs – how do you plan to travel around? What costs are associated with this? Let’s say $300 per month which can be on the high end
Food and dining – where do you want to eat? How much do you want to spend per day on groceries? How much do you want to spend per week eating out? – Let’s budget $1000 here
Entertainment and travel – because we’re looking at income security, this will be the one that you can cut back on, and then raise once your income increases – Let’s budget – $300 here
Miscellaneous expenses – $300
Ok so here we have expenses that lead to a pretty decent living situation in Chiang Mai.
When we calculate the total between all of these, it comes to $2900.
So let’s round that to $3000 to live a comfortable life in a country like Thailand.
I chose higher numbers so that you could always reduce those to a smaller amount if needed. Some of you may only need $2000. Or maybe others might need $4000.
It’s all relative to your situation. But we’re going with $3000 for this example.
Now let’s think for a minute here, if you could bring in a minimum $3000 just to live comfortably in a location, how would that make you feel?
More importantly, if you could bring in that income while having the freedom to do what you want, make more money, and raise that entertainment & travel category, would you do it?
To make $3000 with something like an online social media business, it only takes 2 clients paying you $1500 to reach that. Or 3 clients paying you only $1000 to reach that goal.
With businesses lining up left, right, and center to grow their business, they’d happily pay those prices.
Now imagine getting 5 of those clients paying you only $1000 per month each. At $5000 per month, you’ve not only created income security, but also added to your savings each month.
So make sure you focus on income security first (which is what we teach at James Hopkins Coaching). The goal for income security is to never go below that number.
You always have a baseline that gives you the income you need every month so that anything above it is a bonus.