Do you know your personal 'burn rate'?

Question

I read about this recently - usually burn rate refers to how much a business spends in a month to keep the lights on and people paid/business running, but when you apply it you your own life you tally up the baseline of what could keep you afloat. It's useful if you're thinking about quitting or launching a freelance career, etc. Thoughts?

Anonymous · Answer

I've been kicking around the idea of launching my own business, and have a 'meeting' scheduled with my wife to talk about the barest bones budget we would both be comfortable with before making this move. TBH, I feel like I should already know this - what's a need vs a want and how much we can actually be saving/investing seems like a good thing to have a handle on regardless of employment status.

Anonymous · Answer

Yes! I calculated mine before going full-time freelance. The number helped me when looking for clients (I knew how many I needed to keep me afloat) and for my budget.

Do you know your personal "burn rate"?

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