How much money can you make as an independent consultant? Or from any Alpha 2.0 business? How much money should you make?
How Much Money Should You Make?
In my primary book, The Unchained Man, and at my blogs, I talk about the fundamental baseline of how much money the typical man in the Western world requires for long-term happiness. According to several large and empirical studies, this number is $75,000 per year or close to it. (If you live outside of the USA, please convert this figure to your own currency, get that number in your head, and mentally replace that number whenever I say $75K. It’s important.)
To summarize the importance of that number, if you make less than $75K per year the odds are extremely high that you won’t be able to afford aspects of a lifestyle that you will (or do) really want. This will cause you to be unhappy, at least in the long-term.
The flip side is that making much more than $75K per year does increase happiness for most men, but not nearly as much as it does going from your current average income (whatever that is based on your region) to $75K. You start to experience diminished returns once you start making more money than $75K per year, at least on average for most men.
This means that $75K is the statistical sweet spot in terms of your long-term happiness as a man in the modern era.
There are, of course, exceptions to this. Some men do indeed need to make more than $75K per year for maximum happiness. I’m one of these guys. I would be quite unhappy if I only made $75K per year, and I know this because when I did make $75K per year I wasn’t happy with my lifestyle at all. I wasn’t miserable, but I wasn’t really happy. The good news is that once I was making just under double that, about $140,000 a year, and had zero debt, I was happy as fuck. I make many times that now, and I’m still really happy.
Like I said, that’s me. You may be like me, in that you won’t be totally happy until you make some income figure well past $75K per year. Or you may be more normal, and at $75K per year you’ll be happy as a clam, particularly if you follow the other Alpha Male 2.0 financial standards of low/zero debt, living somewhere with very low taxes and low cost of living, never being a moron by legally combining your finances with a woman, and so on. A guy doing all of those things making $75K per year, especially if that’s location-independent income, is going to live a great life.
That begs the question as to whether or not you would be happy making less than $75K. After all, if there are men like me who need to make more than $75K per year to be happy, it stands to reason that there are other men who would be totally and truly happy making only $55K per year… right?
The answer is, it depends.
If you are one of those guys with very simple needs, who is totally happy not owning a car, living in a shitty little apartment, never really traveling that much (or doing so on the ultra-cheap like being a hostel backpacker), then possibly, yes, less than $75K might make you happy.
Ah, but there’s a catch. As always when I talk about happiness, I’m not just talking about happiness, I’m talking about long-term happiness, as in happiness that will last you the next 30+ years, not just right now.
If you’re a 27 year-old single guy with no kids, no debts, no girlfriend, no nice place to live, and no car, and who doesn’t want any of those things right now, then sure, you might be okay with $40K per year (or whatever). Maybe (even though most guys like you would like a little more money.)
But what happens when you hit 37 and now you want to settle down with a woman and have kids?
I’ll never want that, Caleb!
Oh, c’mon now, we’ve talked about that defensive, bullshit statement at my other blog many times. I’ve shown you the stats on this, as well as shown you examples of men who said this when they were young only to turn around in their late thirties or forties and suddenly change their minds.
So yes, I’m sorry, but the odds are overwhelming (something like 92%) that you will want something like kids or a wife or a family someday. Maybe not today. Maybe not in five years. But someday.
What happens when you want this and you’re only making $50K per year? Heh. You’ve got a serious problem.
Then comes the issue of retirement and old age. IF you make $30K, $40K, $50K, or whatever your entire life, how do you think your old age will look? I’ll tell you. It will look like poverty (at least in the vast majority of cases). Will that make you happy? Nope.
So unless you’re willing to kill yourself before you get too old (and I realize there are those on the internet who advocate this) and you’re this very bizarre exception to the rule who will literally never want to live with a woman or have any kids ever, no matter how old you get, making less than $75K won’t make you long-term happy, even if such a thing would make you happy today.
How Much Money Can You Make?
So if you need to make $75K per year or more to be happy long-term, how much money can you make?
Well, as I’ve talked about before, building your self-employed, location-independent income up to $75K per year (which is only $6250 per month before taxes; not a lot of money with today’s inflation rates) only takes you anywhere from 1.5 years to 3-5 years on the outside, provided you put in the work.
Even if it takes five years, before you bitch and complain about how much “work” that is and how you don’t want to “wait,” take your current age and add five. Now you’re that age, and you have $6,250 coming into your life every month, location-independent, for the rest of your life. Is that a good deal? Was it worth the five years? Uh, yes. (And again, if you hit this hard and do everything correctly it won’t take you five years; you’ll pull it off in far less.)
Consulting is even better. There are pros and cons to all types of businesses and consulting is no different, but the strength of consulting is that you can hit big income numbers very fast, with no college degree and no special certifications, and minimum job experience. This is how I was able to go full-time as a consultant as a 24 year-old beta male moron and get my income to six figures in just three years doing most things in my business wrong. The velocity of income under a consulting model is really amazing. (Today I could go from zero to six figures in consulting (meaning at least $8300 per month pre tax) within three months, perhaps six months on the extreme outside if I ran into a stream of bad luck.)
If six figures seems like too big a number for your subconscious to accept, that’s fine. Stick with the $75K figure ($6250 per month) and go for that, which is even easier under a consulting model. Once you get to that income, you can decide then if you want more or if you’re satisfied with the $75K per year baseline. It’s really up to you.
Any man in the Western world can get his income up to at least $6250 pre-tax USA equivalent given a little time, work, and focus. As always, I’m not saying you need to be a multibazillionaire, make six figures, “10X your life” or any other internet bullshit-hype you hear. Just get your income to $75K per year at least. You can do that. Anyone can.
And you can do a lot more too, if you want.
One of the fastest ways I know to get to this income is by being a consultant. The Consultant Course comes out first thing in the morning, 12:01 PST/PDT Friday, March 22nd. Put it on your calendar, because you’ll only be able to get it for one week after that.
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Great article Caleb though I would change one thing:
“$75,000 per year or close to it. (If you live outside of the USA, please convert this figure to your own currency, get that number in your head, and mentally replace that number whenever I say $75K. It’s important.)”
This is not the way to calculate it. You need to think of what 75k BUYS you in America, then consider how much money you need, to buy the same stuff and quality of life somewhere else.
Me for example: as a Polish guy 75k a year would be just shy of 300 000 PLN per year. Thats not “happiness level” money, that is “what the fuck” money, easily in top 0.1% of my country.
Inversely, the local equivalent of 75k$ in Norway would not be as impressive.
So, in other words, this got to be scaled to the local prices, which ties nicely to the 5 Flag system or similar border-bending schemes.
I agree and I’ve sated that before but making that kind of calculation is very complicated and I’m writing to a wide audience here. I don’t want to field a bunch of questions like, “Hey BD I live in X country how exactly would I calculate this?”
Are the 75k before or after taxes?
“We found that the ideal income point is $95,000 for life evaluation and $60,000 to $75,000 for emotional well-being… this amount is for individuals and would likely be higher for families,”
“Data that was examined for North America, which includes the U.S. and Canada, found slightly higher thresholds: $65,000 to $95,000 for emotional well-being (positive or negative feelings) and $105,000 for life evaluation (a cognitive assessment of how satisfied you are with your life).”
It’s pre tax and for one individual, if you have a wife and family you have to increase it.
But keep in mind this study was mostly done with employees! There is a huge difference between working 20h a week on your alpha 2.0 business, making 600k a year or working 80h a week for 70k as an employee. Money can buy more happiness but only if you have the time to enjoy it.