Level 2
Get Your Bearings
You can't navigate without knowing where you are. We'll calculate your real net worth, audit where your money is actually going, and figure out your savings rate. Then we'll set your three Freedom Numbers, the monthly cash flow targets that mark Secure, Independent, and Free. It's not what you make, it's what you keep.
Who this level is for
This level is designed for Day Hikers, people who are building their financial foundation. Whether you're just getting started or need a reset, these fundamentals apply to everyone. No investing experience needed.
Tools & Resources for This Level
Platforms and tools Michael uses and recommends for the topics in this level. These are affiliate links to support our work bringing free, advanced wealth-building education to all.
Monarch Money
The budgeting app I actually use. Clean interface, tracks net worth, joint accounts for couples. 50% off your first year.
Get 50% Off Monarch →
SoFi Bank
High-yield savings, Roth IRA, and brokerage all in one place. Up to a $400 welcome bonus for new accounts.
Open a SoFi Account (Up to $400) →Recommended Reading
Michael's book picks for this level. These are affiliate links to support our work bringing free, advanced wealth-building education to all.
Frequently Asked Questions
What's a "freedom number" and why do I need three of them?+
Your survival number is the bare minimum to keep the lights on. Your base number covers a comfortable lifestyle. Your freedom number is when passive income covers everything and work becomes optional. Three numbers give you milestones instead of one vague finish line.
How do I calculate my real net worth?+
Add up everything you own (cash, investments, property, vehicles) and subtract everything you owe (mortgage, student loans, credit cards, car loans). Be honest, don't round up. Update it monthly.
What if my net worth is negative?+
That's more common than you think, especially with student loans. The point isn't where you start, it's tracking the direction. If your net worth goes up every month, you're on the trail.
How often should I recalculate these numbers?+
Track your net worth monthly. Recalculate your freedom numbers every 6-12 months or after major life changes (new job, new city, new baby). Your goals will evolve and that's fine.
What's a good savings rate to aim for?+
Most financial advisors say 20%. Michael targets 40-50% by optimizing the big three expenses. But any positive savings rate that you maintain consistently will get you there, start where you can and grow it.