How To “Reverse Engineer” The Life You Want
by James on 04/06/09 at 4:15 pm
In one of his best selling books, Robert Kiyosaki writes about the “Wealth Ratio” and what it truly means to be wealthy.
Here’s the basic wealth formula…
First, wealth is measured in TIME not money.
Ask yourself this…
How much money do you have in the bank right now?
How long could you live off that money?
If your expenses are $4,000 per month and you have $8,000 in the bank, then you could live your current lifestyle for only 2 months without working, right?
CALCULATING YOUR WEALTH RATIO
Your wealth ratio is calculated by dividing your total monthly passive income by your total monthly expenses.
If your wealth ratio is 1:1 it means your monthly passive income is equal to your living expenses and you never have to work a J.O.B. ever again.
So the ultimate goal for me ( and one that I designed my life and business around ) was to figure out how to generate “multiple passive income streams” that exceeded our living expenses.
HERE’S HOW YOU CAN DO THE SAME
Figure out what your monthly expenses are, then write down the amount of passive income you currently bring in. If none yet, that’s ok. Do this exercise anyway… it’ll help you gain clarity.
Example.
Using the $4,000 in monthly expenses from above as an example, you would need to bring in $4,000 in monthly passive income ( income from a non traditional job ) to have a wealth ratio of 1:1.
If you earned double your monthly expenses from passive income, your wealth ratio would be 2:1 or 2.
The next thing you will need to do is break down how much you need to earn PER DAY. If you need $4,000 per month that equals approximately $131 per day.
The next question is…
How many leads does it take you to generate $131 per day in sales?
Let’s say for every 20 leads you generate, you get one new downline member which earns you $35 in commissions. Based on that scenario you would need to generate 74 leads per day to make $131 per day ( minus advertising costs, if any. )
This is just a matter of math. Crunch all the numbers and you’ll have a clear idea on how many leads it takes to hit your daily goal.
WHY IS THIS IMPORTANT?
The reason this is important is because you have the ability to “reverse engineer” the lifestyle you want just by starting with this simple exercise.
Don’t skip it.
If you do this exercise everything will become so clear for you because you will have a REAL GOAL based on real numbers.
Doing it any other way is like saying “I want to be rich!”
What the heck does “RICH” mean?
What does it look like?
Nobody knows.
That’s why it’s crucial to take out a pen, paper and calculator and do this exercise!
From there, you just need the proper training on how to generate leads and income to meet your daily goal.
This is the exact exercise I did over 3 years and now I have a wealth ratio of 2 and live an awesome life because of it. I get to spend time with my kids and watch them grow up. Just the other day Zoe and I collected some caterpillars and they’re starting to cocoon; she thought it was so cool!
It would be awesome if you joined me. 
If you want to learn how to get the leads and cash flow to make this life a reality, then I suggest you register for Mike Dillard’s online DVD training that’s happening now. This is the training you need if you want your monthly passive income to exceed your living expenses.
I’m also giving you the perfect bonus that will go hand in hand with the training you’ll be getting from Mike and his hand picked panel of experts.
Watch the video for details on the bonus I’m offering and register right now. You’ll be glad you did!
Here’s the $497 bonus you’re getting from me when you register »
All the best,
- James Grandstaff
Jeremy
Jun 4th, 2009
James,
Great article. If people would learn to do this exercise and get it on paper, they would acheive their goal much faster. I encourage everyone who is considering Dillard’s stuff to purchase through James. You won’t be sorry.
Jeremy
David
Jun 4th, 2009
Hi James,
In agree with Jeremy and I did get Mike’s Formula #2 through you.
Also my web link shown here is a result of acting upon your offer for Downline Secrets#2… In addition I am enjoying Instant MLM Sueeze Page… another MUST for any serious marketer.
Thanks David Smith
Sallyan Porter
Jun 4th, 2009
James
That is excellent advice I actually did the exercise when I first started internet biz and still monitor it thank you. As for Mike Dillards Formula2 yes I’d love to be able to get it but cost wise it’s out of my budget range at present I like what Mike is doing and am a big fan of his so for now it’s a rain check time. Exchange rates are a killer for us who live outside of USA
Curt Miller
Jun 4th, 2009
hi James,
I remember you from MyLSNClub (i think it was called that LOL)
You are doing very well for yourself now and people should “piggy-back” with you if they want to build their businesses…
i’ll tweet this for you!
From James: Hey Curt, yep MyLSNClub was the system that helped me get my start. Thanks for the tweet!
kim
Jun 4th, 2009
very good but i cant afford any of it i dont even have 1$ hehe its sad but its true otherwise i wouldent be i this shitty situation
all the best james i stay in your downline i havent seen any results from my trffic exganges were i have downline secrets running
keep up the work and i will get back as i get an regular job and an appartment thanks
kim
Donna Fox
Jun 4th, 2009
Hey James,
Great article, I love the Wealth Ratio, I recalculate mine on a regular basis to adapt to my increasingly lavish lifestyle LOL
Glad to see you’re doing well!
big love to you,
Donna
From James: Hey stranger, fancy seeing you here. Thanks for stopping by and commenting. I miss you!
R.C. Beckom
Jun 4th, 2009
This is interesting , I will keep my best eye out on this. soon as I understand this method I will mos def fin lee try it
Erica Jones
Jun 5th, 2009
Thanks James! Great post. I’ll sit down tonight with a glass of wine and do some reverse engineering! Cheers!
Rio Seto
Jun 5th, 2009
Hi James,
Good news:
Eureka! I was able to find your S.P.T.S video tutorial. Very exciting & helpful! I am an oldcrack in MLM (the hard way, low gain, high immobility due to work, but never give up), is eager to “upgrade” to the lazy way (with significant result). As newbie the stuff is quite heavy and need some time to digest (is unplugging the video for offline study, possible?).
Bad news:
Use “reverse engineer formula” to calculate (please correct me if wrong). Value of gaining extra knowledge (Mike training) 6 days = $2100 (1997 + domestic hi-speed connection, my country +62) / $35 in comission = 5% leads. Total leads, 100/5 x 60 = 1200 @ 6 days. Realistic growth in 6 days after kicking off my MLM page (0, 5, 10, 20, 50, 100) = 185 leads. Conclusion, master S.P. asap and be ready for the next session…
James, thank you for the offer. I really envy.
rio seto
Wyteria Jacobo
Jun 5th, 2009
Excellent post, James.
I remember reading a book on cold calling and the author said that he knew exactly how many sales he needed to make per day to reach his sales goals for the month. We have to know our numbers if we expect to change them.
Steve Helwig
Jun 5th, 2009
Hi James,
Some very valuable information. But as most don’t have the funds to join you. Keep up the good information.
Mike Krumlauf
Jun 5th, 2009
Hey James,
Thanks for the great article. As usual, very concrete and easy to follow advice.
I appreciate you breaking it down.
Mike
Tony Bright
Jun 5th, 2009
James, this is a great little exercise but the math is the easy part. It’s figuring out how to get to the daily leads and cashflowe that’s the hard part. Love the idea of Mike’s training but it’s really out of reach for most people.
The problem is so many have failed multiple times they don’t believe in themselves enough to take such a big leap.
Most people just can’t get a handle on this attraction marketing on the internet game and just making $10,000 a month inclome online would be a serious life changer for just about anyone.
Still, the exercise of breaking it all down to a daily number to meet expenses, as you have suggested, is a great thing to do and might even make it seem more achievable.
Paul Maclauchlan
Jun 5th, 2009
Nice article, James. Most people spend more time planning their vacation than their financial future.
I’m always amazed when people don’t know their monthly income and expenses. It’s no wonder so many were experiencing personal financial meltdowns long before this “global economic downturn”.
Funny… the economy is going to hell in a hand cart and my monthly income keeps going up. And even people that see it happening are quick to label my monthly income plan a scam. hmmm, could it be there is something out there that ISN’T being reported on the news?
Fred Raley
Jun 6th, 2009
Hey James,
Great article.
Dillard is the king of marketing isn’t he? Love everything he has done. His training has really propelled me and you too hasn’t it?
Give me a ring cause I have some good news to share from another one of my million dollar mentors.
Fred
703 203 4648
David King
Jun 6th, 2009
Great Post James…
I have read a lot of Robert Kiyosakis book’s but I don’t remember that wealth ratio… glad i stopped by your blog to check it out.
I’ll need to do that for myself.
Talk soon
Dbk
Robert
Jun 6th, 2009
James like this set-up.
Ephran
Jun 6th, 2009
Great Info James. I was just thinking about that the other day. I’m at 350 a day. Now if I can transform it to the internet !!