If you have to actually go and work for money in a job by moving your physical body into a particular place at a particular time of the day and of the week, then you are financially dependent. You’re dependent on your boss and on your employment…

Download The Prosperity Tool

To that end, the wisest financial goal that you could possibly set is to break free from that dependency by achieving financial independence.

That’s the first goal. That’s it!

There’s no more pressing financial goal for you when you’re in a dependency than to break free of the dependency.

But one of the craziest phenomenons I see is that people don’t know their own numbers. They don’t know the math of their own financial independence. And, they haven’t figured it out yet.

When I ask someone, “What’s your financial independence number? What’s your passive income shortfall every month between where you are now and where you could be financially independent?”… very few people know.

In the next five minutes, if you don’t know your number, we’re going to calculate it together. As a matter of fact, I’m going to give you a little calculator here.

It’s a free download that I want you to get. It will take you probably about 30 seconds tops, and you’ll know exactly where you stand. You’ll know exactly what you need to do to go and create financial independence.

Basically, it asks you three questions:

  1. What’s your total liquidity (A)
  2. What’s your monthly living expenses (E)
  3. How much passive and semi-passive income do you make every month (PI)

The calculator then uses the prosperity formula to calculate your time-based prosperity figure. If you’re new around here, the prosperity formula is: A / (E-PI) = Prosperity

Let me just give an example of how it works…

Say for example, your total liquidity at the moment is $10,000.

Let’s just say you’ve got $10,000 in the bank. Your monthly living expenses are $4,000 and assuming, like most people, so far your monthly passive and semi-passive income is zero.

Remember, very few people have created passive income streams.

The majority of their income stream is active. They’ve got to go out and actually work for it. After you fill in just these three numbers, then you come down to the bottom here and you click summary.

What it does is it loads up basically a summary page of your situation based on just the three numbers that you put in. You’ve got your liquidity, your expense, and your passive income. Now there is a formula for prosperity that is a time-based prosperity. This 2.5 months here, basically what this means is, if your active income falls to zero and you need to live off your liquid assets and your passive income, how much time can you buy.

So if you’ve got 10 grand in the bank, and your monthly living costs are $4,000, you can go two and a half months. If you lose the job, you break the leg, break the back and you don’t have an insurance. You’ve got the no passive income and you have to live off your kitty. You’ve got to live off the savings and can go two and a half months.

The Prosperity Figure

This prosperity figure allows you to calculate where you’re at financially in terms of time.

The biggest contributor to your level of financial independence is how much passive income you can make. Because look, if your expenses are four grand a month and even if you just make $2,000 a month passively, then what that does is it basically doubles your prosperity. Because if the shit hits the fan and you got to live off your $10k kitty and your monthly expenses are $4,000, we calculated before that you can buy two and a half months into the future. But if half of your living expenses can be subsidised by the passive income that you are generating, then you only need to use half of that kitty every month.

You can buy yourself double the time forward.

There’s a ratio between your passive income and your living expenses. When that reaches equilibrium, when your passive income becomes equal to your level of monthly expenses, you have reached what we call “Infinite Prosperity”.

It means that you can live indefinitely off of the passive income that you’re generating. Let me just show you what that looks like. If your monthly expenses are 4,000 and your passive and semi-passive income is 4,000, congratulations you’ve reached infinite prosperity. Simply because, even if the shit hits the fan, technically you won’t even have to cut into your $10,000 of liquidity. You wouldn’t have to kill your golden goose because you’ve got enough passive and semi-passive income to live off of. It covers your living expenses.

But this is not the case for most people…

Let’s wind that back down to zero and go with the initial numbers. We got two and a half months of prosperity. By the way…

In my experience, the average tends to be between two weeks and four weeks. Most people can buy themselves 2-4 weeks into the future based on how much they’ve put away in savings (A), how big they’ve acclimated in their lifestyle (E) and how much passive income they’re generating (PI).

With these three numbers, you can figure it all out.

But that’s not the purpose of this calculator. The purpose of this calculator, and the magic of this tool is to tell you exactly what needs to be done.

Three Primary Ways To Get Financial Independence

In my experience, there are 3 primary ways that you’re gonna go and get financial independence.

  1. You can become a passive investor.
  2. Grow to be a trader or a speculator with zero sum income.
  3. Sell a product, usually in the form of creating a business.

What this tool does is it takes your situation, your current level of prosperity. It tells you, you need to make another $4,000 per month in passive and semi-passive income to reach what we call infinite prosperity, which basically means financial independence.

The term “Infinite Prosperity” may be interchanged with the term “Financial Independence”.
Infinite Prosperity = Financial Independence

Passive Investing

The calculator here says based on your numbers that could be achieved with $960,000 invested at 5% per annum.

In that case, if you had the 960 grand you could put that in a 5% asset class, draw the 5%, live off it indefinitely and you could buy your $4,000 a month lifestyle. You wouldn’t have to go to work. Or if you could do 10% per annum you’d only need 480 grand. Or 15% per annum you’re looking at $320,000 will get you that.

Now, the majority of the people who haven’t achieved financial independence don’t have $960,000 lying around or else they’d be financially independent. Passive investing is the long game. I recommend everyone become a passive investor. But understand that passive investing at 5-10% per annum is not going to get you out of your job in the next few years unless you come into some money, you inherit some money, you have a big windfall, which is very rare. I don’t want to account for that.

Speculative Trading

The next strategy you can use to achieve infinite prosperity is via trading and speculation. If you have specialised knowledge in the markets, you can use strategies and skills that you’ve developed to exploit the oscillations of the collective market mind.

Furthermore, you can buy when there’s unjustified pessimism or sell when there’s unsustainable optimism, trade and edge as well as make semi-passive income that’s very highly scalable and mobile.

If you’ve got a laptop, making the income online becomes vulnerable. Trading and speculation, if you have specialised knowledge and you’re gonna learn how to do it properly, you can use that. Say for instance, you’re doing 2% a month with a $200,000 account, you can have your lifestyle expenses covered. If you’re able to nail 4% per month in your account, a $100,000 account will do it. You put the hundred grand in, you make a 4% return every month, you draw your $4,000 out, your lifestyle expenses are covered.

Now if you’re popping 6% a month as a trader… 6% a month is pretty bloody good as a long term average. But if you can nail those kinds of returns, you’re looking at under $70,000. You accumulate $70 grand and you’ve got your lifestyle expenses taken care of.

Sell a Product

The final way to achieve infinite prosperity is to go and sell a product.

Look, you got to understand something…

The majority of the people, the people going into work and never really breaking out of that cycle, they are selling their time. But the people who understand the prosperity formula and understand that finance is a game of buying time, they don’t sell their time, they buy time.

They don’t go and sell their time, their most valuable commodity for a fixed hourly rate that usually doesn’t go up very much.

Many people use systems and strategies like this, investing, trading, selling a product, usually online, to go and buy themselves time. They buy time rather than sell time.

Know Your Numbers

Because we’ve done the math here and we know that you need another $4,000 per month in passive, semi-passive income, the numbers are very objective. If you don’t know your numbers yet, you haven’t put enough thought into it. You’re not actually on track to ever achieve financial independence. Know your numbers and then once you do, you realize that if you have a $100 product you just need to sell 40 products per month.

Having a $200 product, you only need to sell 20 of those per month.

If you create a $500 dollar product, 8 sales per month are going to give you enough income to pay for your living expenses. (Caveat: These figures don’t account for margins or tax).

If you haven’t done the math on your own financial independence, I urge you to click the link below the video here, go and get this tool. Fill it out. Look, it takes, 10, 15 seconds to fill it out. It will probably take you 30 seconds to do the whole thing and you’ll know exactly where you are, where you’re going and you’ll know exactly how to get there.

Infinite Prosperity

To become a passive investor, a trader, or an online marketer, these are the three income streams that we teach in infinite prosperity.

These are the three strategies that I’ve used to create financial independence in my life and so these are the strategies that we teach.

  • If you do any one of these three income streams, you can achieve financial independence and you can know exactly how long it’s gonna take.
  • Doing two, it’s probably going to be quicker.
  • Implementing all three, now you’re cooking with gas.

You’re going to achieve infinite prosperity in a relatively short period of time compared to the people who go and work for a boss their whole entire life and sell their time and never really quite get there.

So if you do nothing else, at least know your numbers so that when someone asks you, “What are your financial independence numbers?”, you tell them straight away you have crystal clear clarity of the mind about where you are and where you’re going.

March 23, 2018