Better late than never right. (・_・;) Here is what I propose to accomplish by the end of 2012.
1) Make at least $4,000 more than last year. This shall come from a combination of my 2 jobs, tutoring, and dividend income. If I can get just $1000 increase from each income source then I’ll be hunky-dory.
2) Put $10,000 into my retirement accounts. I’m lucky enough to have my employer match my own contribution up to 4% of my salary. A typical defined contribution plan. The rest I plan to save myself.
3) Put $5,000 into my TFSA. (Roth IRA equivalent in Canada) I plan to buy some value stocks in here.
4) Put $25,000 towards other investments (stocks or bonds or real estate, etc)
5) Have a six-figure investment portfolio. The net value of all my investments will be over $100,000.
6) Increase net worth by $40,000.
That’s pretty much it. How do I plan to invest so much and increase my wealth by $40,000 this year, when I can’t even take home $40,000/year from my full-time job? The same way as last year. In 2011 my net worth increased by more than my salary. Among other factors, having a 2nd job and multiple income sources really helps. All I plan to do this year is to continue focusing on my multiple income streams, live within my means, and use leverage to increase my investment returns, (which unfortunately also increases risk, but I currently see no better alternative.) My goal is to work smarter, not harder. I will put the money I already have to good use, and continue to do what I enjoy like designing art, teaching, and blogging. I hope to have a normal life, without over working myself, and still reach financial independence in my mid thirties.
“How am I going to live today in order to create the tomorrow I’m committed to?”
Good luck with your goals!
You did amazing in 2011! What an inspiration? How did you begin to learn about investing? What are you some of the tips you have newbie investors?
Thanks M. Good luck with yours as well.
Thanks, I actually get a lot of my own inspiration from other bloggers. I started in 2008 when I had some money saved up and one day at the bank, a teller told me I should invest my savings instead of letting it just sit in my account. She helped me book a meeting with a financial advisor, whom I bought some mutual funds from, and got hooked on investing ever since. When people are starting out, they should first learn what kind of investor they are and what their risk tolerance is. And read lots of personal finance blogs like yours and mine.
Wow you're putting me to shame with your investing savvy. If you can increase your networth by more than your net pay I'd say you're well on your way to financial freedom!
are you doing your CFA by any chance? I'm writing it this year and I recognize a lot of the CFA lingo in your posts.
Thanks for dropping by. I'm not taking the CFA myself, but I have some friends that are. It sounds like a really intensive process. I get a lot of my lingo from watching/reading business news.
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I like the idea that you are not afraid to set ambitious , stretching goals!
I would be very much interested to learn how you are going to achieve them.
Thanks Financial Independence. Most of those goals go hand-in-hand. For every $1000 I save, that would translate to a $40 increase in my income, assuming I bought stocks with an average dividend of 4%. So the main secret is to have more savings, which I will address in detail in future posts, and combine that with the power of leverage.
“Work smarter, not harder.” – Now, that’s the idea! Everybody is, in fact, working hard all the time, but only few has the potential to think outside the box and come up with really extraordinary ideas to make their cash management easier and more efficient. =) Anyway, the end of 2012 is near, so I hope you are becoming so close in accomplishing your goals.
I think I am going to accomplish at least most of my goals this years :0) The $40,000 net worth increase one might a bit of a stretch, but there is still 2 more months so we’ll have to see. Thanks for the vote of confidence.
I’m sure you’ve accomplished these goals just like the way you planned. I can feel it in your personality. You’re committed to your financial plans, and why shouldn’t you be? It really pays to stay focus and dedicated to your plans. With careful planning, you’ll have the confidence to achieve your goals. Keep it up! :]