Lewis Mocker

Do You Know Your Millionaire Maths?

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 week, then you are financially dependent.

You’re dependent on your boss and on your employment.

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. 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.

Let’s Get Clarity

In the next five minutes, if you don’t know your number, we’re going to calculate it together. In 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 after you finish, you’ll know exactly where you stand and you’ll know exactly what you need to do to go and create financial independence.

Download The Calculator Here

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


Example

Let’s say:

  • Your total liquidity is $10,000 (in other words, you’ve got $10,000 in the bank)
  • Your monthly living expenses are $4,000
  • Like most people, so far your monthly passive and semi-passive income is $0

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 click the “summary” tab.

In this example, since you’ve got $10,000 in the bank, and your monthly living costs are $4,000 – you can buy 2.5 months forward.

If the shit hits the fan and you lose your job or break your neck, and you’ve got no insurance? Then you’ve got to live off your kitty. You’ve got to live off the savings! And since you have $10,000 you will last 2.5 months.

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

It’s all a game of time

The biggest contributor to your level of financial independence is how much passive income you can make. If your expenses are $4,000 a month and you make $2,000 a month passively, then what that does is it doubles your time-based prosperity.

In that case, 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 could buy 2.5 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 withdraw half of your total expenses from your kitty each month.

This allows you to buy double the time forward.

There’s a ratio between your passive income (PI) and your living expenses (E).

When that reaches equilibrium, you have reached what we call “Infinite Prosperity”.

It means that you can live indefinitely off of the passive income that you’re generating. 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...


In my experience, the average tends to be between 2-4 weeks. Most people I speak with 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.

  • Liquid Savings (A)
  • Monthly Expenses (E)
  • Passive Income (PI)

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

In my experience, there’s 3 primary ways that you’re going to achieve financial independence.

  1. Become a passive investor.
  2. Learn to trade or a speculator with zero sum income.
  3. Sell a product via a business you start.

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


Passive Investing

With the example data mentioned above, the calculator says that based on those numbers, Infinite Prosperity could be achieved with $960,000 invested at 5% per annum.

In that case, if you had the $960k you could put that in a 5% asset class, draw the 5% each year, live off it indefinitely and you could buy your $4,000 a month lifestyle without going to work.

  • Or if you could do 10% per annum you’d only need $480k.
  • Or 15% per annum you’re looking at a kitty of $320k.

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.

So remember, 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 strategic financial trading and speculation.

If you have specialised knowledge in the markets and you can exploit the oscillations of the collective market mind. This allows you to buy when there’s unjustified pessimism or sell when there’s unsustainable optimism. You can trade and edge and you make semi-passive income that’s very highly scalable and mobile.

Based on the example above, if 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. In other words, you store the hundred grand in your trading account, you make a 4% return (as a monthly average), you draw your $4,000 out and your lifestyle expenses are covered.

Now if you’re popping 6% a month as a trader, you’re looking at under $70,000. In other words, you accumulate $70k and you’ve got your lifestyle expenses taken care of. But be aware that 6% per month as an average return over a long period of time is very impressive. Only a small percentage of traders make it to that level, and those who do will eventually sustain liquidity restrictions as their account size grows into 7 and 8 figures. Basically, as your account size grows into a vast size, the edge you trade in the market will become smaller and smaller as it becomes harder to move around greater size. This is why multi-billion dollar hedge funds can’t get close to a 6% monthly average.

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 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.


Financially Independent individuals don’t sell their time (their most valuable commodity) for a fixed hourly rate that usually doesn’t go up very much.

The wealthy use systems and strategies like investing, trading or selling a product to buy themselves time. They buy time rather than sell time.

Again, based on the example above, we know that you need $4,000 per month in passive or semi-passive income to achieve Infinite Prosperity.

If you have:

  • A $100 product, you just need to sell 40 products per month.
  • A $200 product, you only need to sell 20 of those per month.
  • A $500 dollar product, 8 sales per month is going to give you enough income to pay for your living expenses.
  • (Caveat: These figures don’t account for margins or tax).

In summary, If you haven’t done the math on your own financial independence, I urge you to get this tool.

Fill it out. 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

If you’re interested in becoming a passive investor, a trader, or an online marketer, these are the three income streams that we teach at Infinite Prosperity.

These are the three strategies that I’ve used to create financial independence in my life.

If you do:

  • Any one of these three income streams, you can achieve financial independence and you can know exactly how long it’s going to take.
  • Two of them, it’s probably going to be quicker.
  • 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 life, sell their time, and never really quite get there.

So if you do nothing else, at least know your numbers.

That way, 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.