You might know I applied for a trademark on the term Complete Financial Choice™ (CFC) after using it for several years instead of the term retirement or financial freedom. Neither one of those fit the work we are doing in raising philanthropists.

Many of you might experience an idea that comes to you while in the shower, or while driving a car, in meditation, or while dozing off to sleep or just waking up.

Well, I had one of those ideas recently. It was a formula to measure how close someone is to Complete Financial Choice™, or how far away it is.

You can use what I created to measure where you are. If it’s a positive number you are in good shape to start with. If it is less than one, it’s not so good. And the larger the number, the better shape you are in. And at a certain number you may have already arrived.

Here is how you calculate your level of CFC:

Divide your net worth by your annual income. The best number for annual income would be your adjusted gross income from your tax return if you live in the United States.

Here are some examples based on what I know about these people. Please understand these are guesses.

An online marketer that earns about $900,000 per year with a net worth of $300,000

———— = .33 This is less than 1, and therefore not so great.

Warren Buffett has a net worth of about $82.4 billion and has a taxable income of $120,000 per year.

——————– = 686,667 This is a very large positive number that very few people on earth would have.

A mindset coach that I know, and I know several, has a net worth of about $1,850,000 and an annual income of $250,000.

————– = 7.4 A comfortable positive number.

If he or she were to earn 5% on their net worth it would generate $92,500 of income or about 40% of the earned income. That does not consider any social security or other qualified retirement plan income. This couple could be near 100% when those amounts are added in. They are so close to Complete Financial Choice™.

When I did this for me and my wife we had a positive number of 25. Our investable net worth, not the net worth that includes the value of our home, if we re-positioned it to earn 5% would provide $100,000 per year more than our current taxable earned income.

On the basis of the formula I just invented, it appears a positive number of 10 or more would likely create Complete Financial Choice™.

Let’s verify or modify my creation. Please see how this calculation might work for you and let me know what you think.

To Your Prosperity,