Finding Your Freedom Number

What a freedom number is, and isn't

Your freedom number isn't the amount you'd need to retire, and it isn't your current salary. It's the gross monthly income your own work must reliably earn to cover your life, your business, your taxes, your health insurance and your future, without a paycheque.

It's almost always higher than people expect, because a salary hides costs that your employer currently pays: half of your Social Security and Medicare taxes, most of your health insurance, retirement matching, equipment, software and paid time off. When you work for yourself, all of those become yours.

That's not a reason to be discouraged. It's a reason to be precise. A clear number lets you plan the transition calmly, set prices with confidence and know exactly when you can make the move.

Why a number beats a feeling

Most women who want to build something of their own are held back less by ability than by uncertainty. 'Can I afford it?' is a question that keeps people in jobs that no longer fit for years longer than they need to stay, or pushes them out too early, before their income is ready.

A freedom number replaces that anxiety with arithmetic. It tells you what 'enough' is, how far away it is and what has to happen to get there. It also changes how you make everyday decisions: whether to take a project, how to price an offer, whether a new expense is worth it. Each one either moves you towards your number or away from it.

It's also motivating. Watching your gap shrink month by month, as your first client becomes three and your first product sale becomes fifty, is one of the most energising parts of the Soft Shift.

Step 1: Map what you really spend

Start with real numbers, not estimates. Pull three to six months of bank and credit card statements and categorise your spending. Annual costs, such as insurance, travel, gifts and car registration, should be divided by 12 and included. Most people underestimate this step by 15 to 25%.

Then ask a second question: what do you want this to be? Some women find their spending falls when they leave corporate life (fewer commutes, dry cleaning and convenience purchases). Others want to build in more travel or family time. Your freedom number should fund the life you want, not just the life you have.

Factor in where you live

The same life costs very different amounts in different places. The US Bureau of Economic Analysis publishes Regional Price Parities, which compare overall price levels across states against a national average of 100. In 2024, California came in at 110.7, Hawaii at 110.0 and New Jersey at 108.8, while Arkansas was 86.9, Mississippi 87.0 and Iowa 87.8. Florida was 103.4. Housing explains most of the difference, and prices inside a state vary too: a big city is usually well above its state average.

Location matters in three ways for your freedom number. First, it sets your baseline spending: use it to sense-check your own expenses. The average US household spent $78,535 in 2024 according to the Bureau of Labor Statistics, about $6,028 a month once healthcare is taken out. Adjust that for your state and you get a useful benchmark, though your own household size and lifestyle matter more. Second, it changes your taxes: nine states, including Florida and Texas, have no broad state income tax on wages and business income, so a slightly lower set-aside may be enough. Third, it opens a strategic option. Moving, or spending part of the year somewhere less expensive, can lower your number substantially.

For countries outside the US, the World Bank's International Comparison Program measures how far a dollar goes on household consumption. In 2024, prices for household consumption were around 60% of US levels in Portugal and Mexico, and around 36% in the Philippines. Switzerland was about 26% above the US.

Before you build a plan around moving, price the whole picture: health insurance or local health care, visas and residency rules, tax (US citizens generally must still file US tax returns when living abroad), currency swings, travel home to family, and how far you'll be from clients. The Freedom Number calculator on the home page lets you enter your country, or your ZIP code in the US, to see typical spending where you live, and to compare your number in another state or country.

Step 2: Price your independence

These are the costs your employer may currently cover, or that don't exist until you work for yourself. They're the most commonly forgotten part of the calculation.

1. 1

   Health insurance

   This is often the biggest new cost. Your options include the ACA marketplace (healthcare.gov or your state exchange), COBRA continuation of your employer's plan (typically up to 18 months, at full cost plus an admin fee), joining a spouse's or partner's plan, or a professional association plan. In 2026, marketplace costs rose sharply for many people after the enhanced premium tax credits expired, so get real quotes for your age, location and household before you plan. Include premiums plus a realistic estimate of deductibles and out-of-pocket costs.

2. 2

   Retirement contributions

   Without an employer plan or match, you'll need to fund your own retirement. A Solo 401(k) allows up to $24,500 in employee deferrals in 2026, plus catch-up contributions of $8,000 from age 50 (or $11,250 at ages 60–63), plus an employer profit-sharing contribution, up to a combined $72,000 (under 50). A SEP IRA allows up to $72,000, roughly 20% of net self-employment earnings for sole proprietors. Decide what you want to save each month and include it.

3. 3

   Business costs

   Software and AI tools, a laptop and phone, website and email, accounting and legal fees, insurance (professional liability, general liability), marketing, travel to clients, training and memberships. A lean service business might spend a few hundred dollars a month. A product business may spend more.

4. 4

   Paid time off

   You won't be paid for holidays, sick days or quiet months anymore. Many independents plan to earn their annual target in about 10 to 11 months to fund that time off.

5. 5

   A buffer

   Add 5 to 10% for the unexpected: late-paying clients, a quiet month, equipment failure. It's much easier to plan for than to absorb.

Step 3: Gross it up for tax

When you work for yourself, nobody withholds tax for you. You pay income tax plus self-employment tax of 15.3%: 12.4% for Social Security (on net earnings up to $184,500 in 2026) and 2.9% for Medicare (with no cap). As an employee, your employer paid half of that. Now you pay both halves, although you can deduct half of your self-employment tax when calculating your adjusted gross income.

To keep it simple, many self-employed people set aside a fixed percentage of every payment they receive, often 25 to 30%, in a separate tax savings account. Your accountant can give you a more precise figure based on your state, deductions, household income and business structure.

To find the income you need before tax, divide your total monthly need by (1 minus your set-aside rate).

You'll also need to pay estimated taxes quarterly, typically due on April 15, June 15, September 15 and January 15. Missing them can mean penalties, so put the dates in your calendar now and pay from your tax savings account.

Worked example: living expenses $5,900 + health insurance $900 + business costs $400 + retirement savings $500 = a monthly need of $7,700. With a 28% set-aside: $7,700 ÷ 0.72 = $10,694 a month. That's this woman's freedom number, about $128,300 a year in revenue.

Step 4: Measure your gap

Now compare your freedom number with what your own work earns today, meaning income from consulting, advising, products, speaking, teaching or anything else that isn't your salary. Use an average of the last three to six months, not your best month.

If your own work currently earns $1,000 a month and your freedom number is $10,694, your gap is $9,694. That might feel like a big number. It's also a solvable one. Many women start at zero.

Step 5: Put a date on it

Decide how fast you can realistically grow your own income each month while you're still employed, then see when it crosses your freedom number. Growth usually comes in steps (a new client, a new retainer, a product launch) rather than a smooth line, but averaging helps you plan.

The Freedom Number calculator on the Vaantage home page does this maths for you and shows the date. Revisit it every quarter as your numbers change.

Step 6: Build your cushion

A safety cushion buys calm decisions. Without one, every slow month feels like a crisis, and you may say yes to the wrong clients or underprice your work out of fear.

• Aim for at least six months of personal living expenses in an accessible savings account before you leave your job.
• Build a separate business buffer of two to three months of business costs.
• Keep your tax savings account separate, and don't count it as cushion. That money already belongs to the IRS.
• Consider staying in your role, or moving to part-time or contract work, until your own income has covered your freedom number for three months running.
• Pay down high-interest debt before you go. It lowers your number and your stress.

Choose your transition model

There's no single right way to make the shift. Most women choose one of three models, and some move between them.

1. 1

   The bridge

   Keep your full-time role while you build your own income in the evenings and at weekends, then leave once your own income has covered your freedom number for three months. It's the lowest-risk model and the most common for women with significant financial responsibilities. The trade-off is time and energy, so protect your recovery.

2. 2

   The glide

   Negotiate a reduction to four days, part-time or a consulting arrangement with your current employer, using the freed time to build. You keep some income and often your benefits, while gaining real capacity. Many employers will consider it for valued senior people, especially if you propose it well.

3. 3

   The leap

   Leave once you have a large cushion (often 9 to 12 months of expenses), a clear offer and early clients lined up. It's faster but riskier, and it suits women with lower fixed costs, a partner's income or a severance package.

Pricing your first offer

Underpricing is the most common reason experienced women take longer than necessary to reach their number. Your clients aren't paying for your hours. They're paying for decades of judgement that helps them avoid expensive mistakes and move faster.

A simple way to sense-check your pricing is to work backwards from your freedom number. Independents rarely bill every working day, because sales, admin, learning and time off all take time. Many plan on around 100 to 140 billable days a year.

Better still, move away from day rates towards packages and retainers, priced on the value of the outcome: an AI readiness assessment, a quarterly advisory retainer, a fixed-scope project. The Soft Shift toolkit includes pricing worksheets for both paths.

Example: a freedom number of $10,694 a month is about $128,300 a year. Divided by 120 billable days, that's roughly $1,070 a day as a floor, before profit or growth. That's often far more than people guess from their old salary.

Three levers to close the gap faster

1. 1

   Lower the number

   Every $100 a month you cut from your needs lowers your freedom number by about $139 at a 28% set-aside. Look at housing, transport, subscriptions and debt. You don't need to live frugally forever. You need to make the transition period easier.

2. 2

   Raise your income

   Price for value, not hours. Experienced professionals routinely underprice their first offers. A retainer at $3,000 a month with three clients covers a large share of most freedom numbers. Raising prices for new clients is the fastest lever most people have.

3. 3

   Reduce the risk

   Build recurring revenue such as retainers, memberships and subscriptions, so each month doesn't start from zero. Recurring income is what makes the leap feel safe.

How the Soft Shift closes the gap

The Soft Shift Playbook offers two paths to income of your own, and most women start with one and add the other.

1. 1

   Path A: the Advisor

   Turn your decades of expertise into consulting, advisory and retainer work. It's the fastest route to meaningful income, because you're selling judgement you already have. Example: two advisory retainers at $2,500 a month plus one $6,000 project a quarter averages $7,000 a month.

2. 2

   Path B: the Builder

   Turn your expertise into a digital product, such as a toolkit, a course, a template library or a software tool. It takes longer to build, but it can earn without your hours. Example: 100 sales a month of a $57 product earns $5,700 before fees and costs.

3. 3

   Both

   Many women use Advisor income to fund the transition and Builder income to create freedom over time. Together they close the gap faster and reduce dependence on any single client.

Your first 90 days of building

1. 1

   Days 1–14: Get clear

   Calculate your freedom number and gap. Choose your path: Advisor, Builder or both. Write a one-sentence description of who you help and what changes for them.

2. 2

   Days 15–45: Validate

   Talk to 10 to 15 people who could be clients: former colleagues, peers and your network. Ask about their problems, not your idea. Look for patterns and for people who say 'I'd pay for that'.

3. 3

   Days 46–75: Make your first offer

   Package one clear offer with a price. Offer it to the people you spoke with. Aim for your first paying client or your first pre-sales. Imperfect and paid beats perfect and unlaunched.

4. 4

   Days 76–90: Review and repeat

   Update your numbers. What did you earn? What did you learn? What will you change? Set your growth target for the next quarter and book your next conversations.

Talking about money at home

If you share finances with a partner, your freedom number is a joint project. Changing how a household earns can stir up anxiety on both sides, and a clear plan reduces it.

• Share the worksheet and the gap. Numbers are calmer to discuss than feelings.
• Agree on the cushion and the target date together.
• Agree on a check-in rhythm, such as monthly, to review progress.
• Discuss health insurance options early, especially if a partner's plan is an option.
• Celebrate milestones together: the first client, the first $1,000 month, the month you cover your number.

Use AI to get there faster

AI tools don't replace your expertise. They multiply it. Used well, they let one person do the work that used to need a small team, which shortens the path to your number and protects your energy while you're still employed.

• Draft proposals, follow-up emails and client reports in minutes, then refine them with your judgement.
• Turn your frameworks and experience into templates, checklists and course content.
• Research a market, a competitor or a client's industry before a sales conversation.
• Automate admin: scheduling, invoicing reminders, note-taking and summaries.
• Keep your judgement in the loop. Check facts, protect client confidentiality and never paste sensitive data into tools you haven't vetted.

Plan for slow months

Independent income is lumpy. A big project lands one month and nothing the next. Plan for this from the start, and slow months stop feeling like emergencies.

• Pay yourself a steady monthly 'salary' from your business account, and let good months refill it.
• Keep two to three months of business costs in reserve.
• Keep marketing and conversations going even when you're busy. Today's pipeline is next quarter's income.
• Use quiet months for building: products, content and improving your offer.
• Track a rolling three-month average rather than reacting to any single month.

Your freedom number worksheet

Revisit your number every quarter

Your freedom number isn't fixed. Children grow up, mortgages get paid off, insurance prices change, and your business costs shift as you grow. A quarterly review keeps your plan honest and your target date realistic.

Common mistakes to avoid

• Using your take-home pay as the target. Your freedom number needs to cover the taxes and benefits your employer currently handles.
• Forgetting health insurance, or using an outdated quote. Get real numbers for 2026.
• Ignoring quarterly estimated taxes until April, then facing a large bill and penalties.
• Counting your best month as typical. Use a three to six month average.
• Pricing by the hour based on your old salary. Your salary didn't include sales time, admin, tools or time off.
• Leaping before you have recurring revenue and a cushion.
• Mixing business and personal money. Open a separate business account from day one.
• Trying to do it alone. An accountant pays for themselves quickly, and a peer circle keeps you going.

Questions to ask your accountant

• What tax set-aside rate should I use for my state and household?
• Should I operate as a sole proprietor, an LLC, or an S corporation, and when would a change make sense?
• How should I calculate and pay quarterly estimated taxes?
• Which business expenses can I deduct, and what records do I need to keep?
• Is a Solo 401(k) or a SEP IRA better for me, and how much can I contribute?
• How will my health insurance premiums affect my taxes?
• What should I do differently in my first year while I still have a salary?

Your freedom readiness checklist

Tick these off over the months before you make your move.

Estimates for planning only. Not financial, tax or legal advice. Tax rates, contribution limits and insurance costs change, so confirm your own situation with a licensed professional.