I also keep track of passive expenses, which I call “necessary expenses.” I add up things like rent, car payments, gas, food, cable, Internet access… pretty much any expense that I pay each month.

I subtract that alternative income from my necessary expenses to come up with a total of how how far away from one level of financial freedom. Obviously there are other costs each month and things like that, but I will have some kind of party when that income passes expenses. At that point, if I lose my job, my “burn rate” will be so tiny that I won’t be rushed into taking a job because I need it to get by.

You can see all this in a tiny box in the top right of my page. I keep track of both of mine on my homepage.