Goal #1: Stage 1 Financial Independence
This is your independence from a boss, job, partner, parent or spouse. Reaching the first stage of Financial Independence means generating enough income to cover your cost of living without the necessity of a boss or external financial authority.
Goal #2: Stage 2 Financial Independence
This is the ability to maintain Stage 1 Financial Independence regardless of market, mind, motor skills or mortality. Reaching the second stage of Financial Independence means:
- If the market crashes, your income stays put.
- If you lose your mind, your income stays put.
- If you lose motor skills, your income stays put.
- If you lose your life, your income stays put.
You create Stage 2 Financial Independence by accumulating enough liquid assets to return your desired annual income based on elementary, low-risk, unleveraged, non-speculative, interest earning investments.
- The Prosperity Formula is: A/(E-PI)
- This formula will produce a time figure (Eg. How many months can you buy into the future.)
- This time figure is a direct reflection of your level of Stage 2 Financial Independence, which is a gradual scale.
- Stage 1 Financial Independence, on the other hand, is more binary. It can change in one day.
- A = Liquid Assets
- E = Monthly Expenses (Lifestyle & Outgoings)
- PI = Monthly Passive Income
- Liquid Assets (A) includes: Cash on hand, stocks, bonds, ETFs, index funds, forex account capital, and any other asset that can be readily converted to cash. Even precious metals are considered liquid, as they can be cashed at any time at a universally agreed upon market price. On the other hand, property, cars, clothing, furniture, electronics and jewelry are NOT considered liquid assets.
- Most people don't have any Passive Income (PI), so their degree of Financial Independence is purely based on their ratio of Liquid Assets (A) to Expenses (E).
- Many people can therefore only buy 2-4 weeks into the future. They live hand-to-mouth, in animal survival mode.
- True evolution is an ascension upwards, towards the timeless and spaceless condition of the soul.
- As your time based prosperity figure grows, you will attain levels of Financial Independence that allow you to follow a more inspired (angelic) calling, rather than scratching and clawing for food and shelter.
- When (E-PI) reaches zero or beyond, you have reached Infinite Prosperity (aka Stage 2 Financial Independence)
- This means your Passive Income (PI) can cover your Expenses (E) regardless of market, mind, motor skills or mortality.
- Income derived from Stage 2 Financial Independence will outlive the human body.
- This income is your financial legacy, a gift from your soul to planet earth.
- This income may be directed in your estate planning before your passing, so you can continue to make a difference long after your departure from this life.