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Module 7 · Lesson 1

Measuring Employment-Income Dependency

Quantifying how much of the household's obligations depend on continuing employment.

Full Access material

Measuring Employment-Income Dependency is part of Full Access

Quantifying how much of the household's obligations depend on continuing employment.

What you produce
Plan a gradual, measured transition where portfolio and business cash flow replaces earned income.

Educational material only. Nothing here is investment, tax or legal advice.

Reflection question

What would your coverage figure need to be before your relationship with your job changed in a way you would notice?

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How this applies by framework phase

The same material reads differently depending on what your capital needs to do next. You may be in more than one phase at a time.

Capital Building
Read this as a question about direction: which surplus, which income stream, and which asset should the next dollar move toward — and what would make that move durable rather than opportunistic?
Capital Conversion
Read this as a question about productivity: what is the capital you already own currently doing, what cash flow could it support, and what drag, liquidity or liability constraint has to be handled before it can do more?
Capital Preservation
Read this as a question about durability: what could force a sale at the wrong time, how much liquidity keeps that from happening, and how is purchasing power protected without abandoning growth entirely?