If you like what you read, check out my first book, My Happy Assets at http://www.myhappyassets.com/ and the complete second book, Small Business Coffee Hour, Three Essential Ingredients for a Successful Business athttp://www.smallbizcoffee.com/. Happy Reading!
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You’ve Reached Your Goal, Now What?
Once you reach your financial independence goal, you will then have time to focus on your passions. Perhaps not all at once. Perhaps you will begin building part time on the side but you will have the opportunity nonetheless. Perhaps too it will be time to build a stronger financial independence fort. As I said previously, there are four stages to the game of financial independence:
Stage 1: Monthly Passive Income = Monthly Expenses
Stage 2: Monthly Passive Income = 2X Monthly Expenses
Stage 3: Monthly Passive Income = 3.33X Monthly Expenses
Stage 4: $100,000 in Monthly Passive Income
You should really have the capability to begin focusing on your passions at the end of stage one but really, if you have a job you plan on leaving, I would not recommend leaving until you are at or very close to stage three. Again, for a person with $3,000 a month in expenses, this would equate to $10,000 a month in passive income. The reasoning behind this is purely defensive. In many ways, having a job is a capital gains move. By having this level of cash flow you are ensuring that you can absorb the impact of job income loss and continue to build your assets.
So, Just What is the Prescribed Game of Cash Flow and Assets?
Simply put, it is learning about and investing in cash flowing assets that generate enough cash flow to meet or beat your monthly expenses. Once you reach this point, you are financially independent. Also, as I so eloquently put earlier, you win the financial independence game first so you can do whatever the hell you want later.
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