The Four Milestones of Financial Independence

Within the game of financial independence, we laid out these milestones:

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

Examples:

Stage 1: An individual has $3,000 a month in expenses and $3,000 in monthly passive income from dividend paying stocks.

Stage 2: An individual has $3,000 a month in expenses and $6,000 monthly income from a combination of rental property, dividend paying stocks and covered call options

Stage 3: An individual has monthly expenses of $3,000 a month and passive cash flow of $10,000 a month from a combination of assets; rental property, dividend stocks, covered call options, a small business writing and publishing books.

Stage 4: In addition to the assets mentioned in stage three, an individual generates $100,000 in monthly passive income by adding book royalties, IP licensing income, and a big business to the cash flow pot.

At stage one, you are technically financially independent and now it is time to focus on finding the real game you want to play, work-wise.

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The above excerpt is from my upcoming third book My Happy Assets - Taking the Last Steps to Financial Independence.

If you like what you read, check out my first book, My Happy Assets athttp://www.myhappyassets.com/only $3.99 and the complete second book, Small Business Coffee Hour, Three Essential Ingredients for a Successful Businessathttp://www.smallbizcoffee.com/, only $3.99. Or both are available at lulu.com. Happy Reading!

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