If I Lost My Job Tomorrow, What Would Happen?
From time to time, I'd find myself asking the same question.
What if I got laid off tomorrow?
After a night on the couch feeling sorry for myself, a couple glasses of Four Roses on the rocks, and a terrible night's sleep... what happens the next morning?
Would I immediately panic?
Would I have to sell the house?
Could we still pay our bills?
How much of our life could continue without my paycheck?
That question eventually led me to create one of my favorite numbers on my financial dashboard.
I call it Freedom %.
My Net Worth Isn't the Answer
At first, I thought I already knew the answer.
I had a growing retirement account.
I had equity in my house.
My net worth looked pretty healthy.
But then I realized...
My 401(k) doesn't pay next month's mortgage.
I can't spend my home equity without selling or borrowing against my house.
Those numbers matter, but they don't help me much if I lose my job next week.
So What Does Matter?
Every month, I total up every dollar my family earns that doesn't require me to go to work.
Right now that includes:
Rental income
Interest from our high-yield savings account
Someday, I hope it also includes things like:
This website
YouTube
Dividends
Another rental property
Every dollar earned outside my primary job gives my family another layer of protection.
Then I Compare It to Reality
Not our dream lifestyle.
Not vacations.
Not eating out.
Not impulse Amazon purchases.
Just the essentials.
Mortgage
Groceries
Utilities
Insurance
Gas
At the end of each month, I ask myself:
"If we had to cut back tomorrow, how much of our essential lifestyle could our other income support?"
That's Freedom %
The formula is actually very simple.
Freedom % = Income Without My Job ÷ Core Spending
But the number tells a much bigger story.
If it's 20%, then 20% of our essential life continues even if my paycheck disappears.
If it's 50%, we've bought ourselves a lot more breathing room.
If it's 80%, losing my job would still hurt—but it wouldn't turn our lives upside down.
And if it's 100%...
My job becomes optional.
That's a sentence I never imagined I'd write.
It's also one of the biggest financial goals I've ever had.
Freedom Looks Different Now
When I was younger, I thought financial freedom meant having a million dollars.
To be honest, I also thought millionaires all lived in giant houses and owned yachts.
Now I think freedom looks completely different.
Freedom is knowing my family would be okay if life didn't go according to plan.
Freedom is having options.
Freedom is knowing I could leave a job because I wanted to—not because I had another one lined up.
I'm nowhere near 100% today.
But every month, I try to move the needle a little further.
Because every percentage point I gain is another percentage point my family no longer depends on a single paycheck.
🛡️ FREEDOM NUMBER #1
Freedom %
Definition
The percentage of my family's core spending covered by income that doesn't come from my primary job.
Why It Matters
Every percentage point I increase is another piece of my family's life that no longer depends on my next paycheck.
Long Term Goal
Reach 100% so work becomes a choice, not a necessity.
