Financial Abundance
Among the areas of our life, we focus a great deal on wealth creation, we track and update our financial abundance score on a monthly basis. & you should too!
A = Liquid asset only
E = Monthly Expenses
PI = Passive Income derive from Investments/ Business
Stage 1= A / (1 x Expenses - PI)
Stage 2= A / (5 x Expenses - PI)
Stage 3= A / (12.5 x Expenses - PI)
Stage 4= A / (25 x Expenses - PI)
Stage 5= A / (50 x Expenses - PI)
E = Monthly Expenses
PI = Passive Income derive from Investments/ Business
Stage 1= A / (1 x Expenses - PI)
Stage 2= A / (5 x Expenses - PI)
Stage 3= A / (12.5 x Expenses - PI)
Stage 4= A / (25 x Expenses - PI)
Stage 5= A / (50 x Expenses - PI)
What's your stage 1 score? If it's 12, congratulation! In the event of unemployment, You're able to sustain your lifestyle for the next 12 months. If your score for stage 1 is in the low single digit, no worries we've been there. Keep working on it. The goal is to increase your passive income so that in future, passive income surpass monthly expenses.