{"id":4186,"date":"2023-07-11T11:37:00","date_gmt":"2023-07-11T15:37:00","guid":{"rendered":"http:\/\/kathryncolleen.com\/studio\/?post_type=project&#038;p=4186"},"modified":"2026-08-07T16:16:41","modified_gmt":"2026-08-07T20:16:41","slug":"money-in-relationships-dreams-and-the-magic-number","status":"publish","type":"project","link":"https:\/\/kathryncolleen.com\/studio\/project\/money-in-relationships-dreams-and-the-magic-number\/","title":{"rendered":"Money In Relationships &#8211;\u00a0Dreams And The Magic Number"},"content":{"rendered":"<div data-pm-slice=\"1 1 []\" data-en-clipboard=\"true\">We have spoken before about the importance of having a dream that drives your financial engine. Psychologically, it makes the difference between staying on track and losing motivation completely. Your dream needs to be so emotionally compelling that you would sacrifice ANYTHING to make it happen.<\/div>\n<div><\/div>\n<div><b>Dreaming And Saving<\/b><\/div>\n<div><\/div>\n<div>The art of dreaming comes down to asking yourself a series of questions, while holding off any negative voice that tells you it cannot be done. It can be done. We have seen a few of these questions before. Let\u2019s add to the list now and really get the creative ideas flowing. In all of this, I am asking you to design a life that makes your soul sing&#8230;<\/div>\n<div><\/div>\n<ul>\n<li>\n<div>What do you really want to spend your time doing?<\/div>\n<\/li>\n<li>\n<div>What is your purpose here in this life? Can you live it?<\/div>\n<\/li>\n<li>\n<div>What do YOU want? Just YOU?<\/div>\n<\/li>\n<li>\n<div>If you could live anywhere in the world, where would you live? Why?<\/div>\n<\/li>\n<li>\n<div>What kind of home would you want to live in? A house? A hotel? A ship? An apartment? A treehouse? Urban, countryside, jungle, ocean, river or suburbs?<\/div>\n<\/li>\n<li>\n<div>What is your ideal daily routine? What activities, and outings do you like?<\/div>\n<\/li>\n<li>\n<div>What skills, degrees, languages or certifications have you always wanted?<\/div>\n<\/li>\n<li>\n<div>What is the biggest problem in the world today, as you see it?<\/div>\n<\/li>\n<li>\n<div>What would you do, if you had time, to help solve that problem?<\/div>\n<\/li>\n<li>\n<div>What is on your bucket list that you have not yet done?<\/div>\n<\/li>\n<\/ul>\n<div><\/div>\n<div>Nothing is impossible. Even if something seems impossible, there is often a way to do it that you were just not aware of. For example, suppose that you would like to life in a big beautiful house in Tuscany with gardens and dogs. Maybe you can\u2019t afford to buy a big beautiful house in Tuscany. But you COULD become a professional house sitter, and work periodically in Tuscany where you will live rent free and enjoy that big beautiful house and gardens while you take care of the dogs and property. OR, what if you bought a house in Tuscany and rented part of it out as a vacation rental or bed and breakfast? You might actually find a new career and live your dream at the same time. Nothing is impossible. FIRST dream the dream. THEN find a way.<\/div>\n<div><\/div>\n<div>In terms of your relationships, you will want to make sure that your dreams include your personal dreams, your partner\u2019s dreams and some shared dreams too. Find a way to make it all work together. If you have small children, include them too. You may not need to put off your dreams until they are grown and gone. Read up on nomadic families who travel the world with their children in tow. Even if world travel is not your thing, it will show you just how many options there are.<\/div>\n<div><\/div>\n<div><b>Your Magic Number For Financial Independence\u00a0<\/b><\/div>\n<div><\/div>\n<div>We have spoken before about your magic number for financial independence. It will not be any different for a couple than for an individual, but we will get a little more detailed. Now that you can envision your dream life, chart out how much that would cost per year. Make an example spend plan as if you were living that life. What would it cost for rent, groceries, cell phones, all the outings you like to take, travel, and everything else. Research it! Go get actual prices. Really. Suppose you would like to live in Lisbon, Portugal. Look up menus for the kinds of places you would want to eat. Look up places to live and what they cost. Get in there and research real numbers and actually write up a monthly budget. It might be a lot smaller than you thought&#8230; or a lot larger. But now you have accurate numbers.<\/div>\n<div><\/div>\n<ul>\n<li>\n<div>Take your total for the month and multiply that by 12 to get your yearly budget. Keep in mind that this is after-tax money.<\/div>\n<\/li>\n<li>\n<div>Now take your yearly budget and multiply that by 1.34 to account for taxes. This is your pre-tax number.<\/div>\n<\/li>\n<li>\n<div>Take your pretax number and multiply that by 20 to 25. This is your magic number.<\/div>\n<\/li>\n<\/ul>\n<div><\/div>\n<div>Once your liquid net worth (the sum of all your investments and bank accounts) hits that magic number, you can withdraw 4-5% per year for life and never run out of money. That 4-5% is exactly your yearly budget before taxes, leaving you at least what you need after taxes to live your dream life, and maybe more. There is one big assumption here that you have INVESTED your net worth, rather than just stuck it in a savings account somewhere. You will be living off the interest it creates. That is, you no longer work for money. Money works for you.<\/div>\n<div><\/div>\n<div>Suppose you like a really simple life on the beach in Costa Rica. Maybe you need only about $2000 a month. That would be $24,000 per year before taxes. Multiply that by 1.34 and you get a yearly pre-tax need of $32,160. Multiply that by 25 and your magic number is: $804,000. Look at that! You don\u2019t even need to be a millionaire! If you have more extravagant tastes, your number will be larger. That\u2019s OK. Your magic number is unique to the life you specifically want to live.<\/div>\n<div><\/div>\n<div>Depending on your age and work history, things like pensions and social security can reduce that magic number even further by providing some of the monthly income you will need, without pulling from your investments.<\/div>\n<div><\/div>\n<div><b>Financial Fatigue And\u00a0Falling Off The Wagon<\/b><\/div>\n<div><\/div>\n<div>That magic number can look terribly large. If you are working your way out of debt, that magic number can look impossible. You cannot fathom being worth that much. And because it seems so very far away, you are in danger of financial fatigue. Big dreams can take some time to materialize. Getting out of debt and saving for your dreams can be a years long process. Meanwhile you are cutting expenses and sacrificing while you watch your friends take vacations and have fun&#8230; and pile up debt, but you don\u2019t get to see that part. It\u2019s exhausting. Periodically, you may run out of steam and feel like it will never happen. That is when you fall of the wagon. You bust out and splurge on something. It may be something small, like overspending your eating out budget. But it may be large like taking an expensive vacation. Either way, there may be regret. It is important that you are compassionate with yourselves when you fall off the wagon. It happens to all of us. Just climb back on and keep going. There will be plenty of setbacks along the way, and some of those setbacks will be you. To err is human. To prevent financial fatigue and falling off the wagon, build some splurge money into your plan every now and again. If you plunge every month, it won\u2019t feel special. You need to play to your psychology here. Build in some plunge money every 3-6 months and enjoy it. That will make sure that when you do fall off the wagon, the damage will not be too bad.<\/div>\n<div><\/div>\n<div><b>Loosening Up Once You Arrive<\/b><\/div>\n<div><\/div>\n<div>Once you reach the magic net worth you have been working so hard to achieve, it\u2019s not the major party you might think; at least not right away. You see, people have a really hard time going from years of conditioned behavior to save and sacrifice to immediately spending and enjoying. You will actually have to practice loosening up. Start small and work your way up to whatever is appropriate. At this point, you don\u2019t need to save anymore, if you don\u2019t want to. You can have some fun with that money if you can convince yourself too. The first time you indulge in a spa day, it is going to feel really weird, like you don\u2019t belong. Indulge a little. Take care of yourself. Get some nice gadgets. Get your nails done. Have a nicer bottle of wine. And feel gratitude for it all. Look back to see how far you have come and how hard you worked to get here.<\/div>\n<div><\/div>\n<div><b>Survivability<\/b><\/div>\n<div><\/div>\n<div>Lastly, once you arrive to that beautiful place of financial independence, you will need to put some thought into not messing it all up. Enlist the help of a good financial manager (see our past discussion about that). Part of their responsibility will be to make sure you don\u2019t ruin your new found financial freedom. In your discussions with your financial manager, \u00a0are sure you cover survivability. That is, when one of you passes away, how can you make sure that the other will be well taken care of? This is a financial issue and a wills and estates issue so you will want to talk to a good wills and estates attorney and get your paperwork up to date. If you have children, you will need to think about how you will want your wealth divided among them when it is all said and done. Welcome to HNWI status. You now have \u201cpeople\u201d. Don\u2019t skimp on these vital team members. They will make sure you can enjoy your dream life worry free.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A practical guide to designing a compelling dream life and calculating a personal &#8216;magic number&#8217; for financial independence as a couple, using detailed real-world budgeting, a 4-5% annual withdrawal rule, and the alignment of personal, partner, and shared dreams.<\/p>\n","protected":false},"author":1,"featured_media":2932,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","episode_type":"audio","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":""},"project_category":[1885,31],"project_tag":[36,2069,1429,654,180,900,280,649,981,2052,947,1452,1857,977,489,309,1012,1248,655,112,302,186,979,978,284,980,605,332,1361,283],"series":[],"class_list":["post-4186","project","type-project","status-publish","has-post-thumbnail","hentry","project_category-money","project_category-observations","project_tag-art","project_tag-books","project_tag-business","project_tag-complete-connection","project_tag-connection","project_tag-consciousness","project_tag-cycle","project_tag-cycle-of-human-development","project_tag-finding-peace","project_tag-guided-meditations","project_tag-human-development","project_tag-lasting-peace","project_tag-lastingpeace-org","project_tag-life-optimization","project_tag-meditation","project_tag-money","project_tag-podcasts","project_tag-poetry","project_tag-purna-asatti","project_tag-relationships","project_tag-religion","project_tag-science","project_tag-seeing-yourself","project_tag-self-mastery","project_tag-self-development","project_tag-self-improvement-2","project_tag-self-understanding","project_tag-society","project_tag-spirituality","project_tag-stages"],"acf":{"recommend_blurb":"Valuable for couples and individuals mapping a concrete path to financial independence without losing motivation. Readers exploring the psychology of money and wealth will find it pairs naturally with Validation, Sabotage and Freedom.","citation_snippet":"Dr. Kathryn Messegee (Kathryn Colleen), \"Money In Relationships - Dreams And The Magic Number,\" https:\/\/kathryncolleen.com\/studio\/project\/money-in-relationships-dreams-and-the-magic-number\/","topics":["money","relationships"],"related_book":"Validation, Sabotage and Freedom","buy_url":"https:\/\/shop.lightningsource.com\/b\/085?kN5Ei1XH3Pk2HgakYpOOL1HumSN9LFPvQeevjteuuxm"},"episode_featured_image":"https:\/\/kathryncolleen.com\/studio\/wp-content\/uploads\/2020\/05\/70C63B0C-A4F2-4798-91BF-ECCF26B74B31.jpeg","episode_player_image":"https:\/\/kathryncolleen.com\/studio\/wp-content\/uploads\/2021\/10\/CCA57320-6DC3-4284-BC27-49E433028503.jpeg","download_link":"","player_link":"","audio_player":false,"episode_data":{"playerMode":"dark","subscribeUrls":{"apple_podcasts":{"key":"apple_podcasts","url":"https:\/\/podcasts.apple.com\/us\/podcast\/on-life-being-human\/id1360368906","label":"Apple Podcasts","class":"apple_podcasts","icon":"apple-podcasts.png"},"google_podcasts":{"key":"google_podcasts","url":"","label":"Google Podcasts","class":"google_podcasts","icon":"google-podcasts.png"},"spotify":{"key":"spotify","url":"https:\/\/open.spotify.com\/show\/2nq6d35q9nFAFlanaJc2Do","label":"Spotify","class":"spotify","icon":"spotify.png"},"stitcher":{"key":"stitcher","url":"","label":"Stitcher","class":"stitcher","icon":"stitcher.png"}},"rssFeedUrl":"https:\/\/kathryncolleen.com\/studio\/feed\/podcast\/on-life-being-human","embedCode":"<blockquote class=\"wp-embedded-content\" data-secret=\"AH6v9pPlVy\"><a href=\"https:\/\/kathryncolleen.com\/studio\/project\/money-in-relationships-dreams-and-the-magic-number\/\">Money In Relationships &#8211;\u00a0Dreams And The Magic Number<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/kathryncolleen.com\/studio\/project\/money-in-relationships-dreams-and-the-magic-number\/embed\/#?secret=AH6v9pPlVy\" width=\"500\" height=\"350\" title=\"&#8220;Money In Relationships &#8211;\u00a0Dreams And The Magic Number&#8221; &#8212; Dr. Kathryn Colleen, PhD\" data-secret=\"AH6v9pPlVy\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script>\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/\/# sourceURL=https:\/\/kathryncolleen.com\/studio\/wp-includes\/js\/wp-embed.min.js\n<\/script>\n"},"_links":{"self":[{"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/project\/4186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/project"}],"about":[{"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/types\/project"}],"author":[{"embeddable":true,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/comments?post=4186"}],"version-history":[{"count":3,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/project\/4186\/revisions"}],"predecessor-version":[{"id":7347,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/project\/4186\/revisions\/7347"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/media\/2932"}],"wp:attachment":[{"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/media?parent=4186"}],"wp:term":[{"taxonomy":"project_category","embeddable":true,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/project_category?post=4186"},{"taxonomy":"project_tag","embeddable":true,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/project_tag?post=4186"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/kathryncolleen.com\/studio\/wp-json\/wp\/v2\/series?post=4186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}