The vision is clear 💯- financial independence and potential early retirement. Or at least having the choice of an early retirement.
The strategy is clear 🎯- trim costs, keep savings rate high and invest, invest, invest.
The tactics is clear 💡- conservative dividend paying stocks (listed and unlisted), activating assets to yield additional income.
The operations are clear ☑️ – reduce, reuse, recycle, and most importantly refuse. Refuse to spend money on idiotic stuff 💸🚫
2020 will be a significant year in our quest for financial independence. It will be a year of significant dividend income. Hopefully we will both keep our jobs and hence income will be good, and saving high. All of which will help elevate our net worth towards to utopia of financial independence.
Having clear plans, with identifiable goals and “KPIs” will help you stay the course towards your goal, what ever it may be.
Here are my financial goals for 2020.
The goal for 2020 when it comes to savings is to continue and maintain our current savings ratio which is roughly 7.500 USD/month. This translates to roughly 90.000 USD for the year 2020. With a bit of luck and perseverance, we might be able to push it marginally higher, but not a lot. Significantly more the 90k will in large part be down to bonus payments from my work, and additional shift work payouts from my wife’s work.
✅ Retirement savings
This one is an easy one. Combined we are currently adding about 3.300 USD/month on our mandatory employer retirement schemes. This will roughly be around 40.000 USD for the year.
✅ Passive income
Dividends; I am currently projecting dividend incomes next year in the order of roughly 20.500 USD. With the additional savings we will be putting in, and reinvesting the dividends, I would like to convince myself, that something like 23.000 USD of dividends next year is feasible.
Airbnb; The goal for 2020 is to just get 3.000 USD for the year in short term rental income. This will mostly cover fixed costs on our vacation home.
Blogging; In terms of income it will be limited. I am setting a goal of 50 USD for the year. More important will be the goal of reaching 1.000 followers and a day with 1.000 page views. Both goals will be roughly double up of this years max.
✅ Investment portfolio
When it comes to my active investment portfolio the goal for next year will be to reach a state somewhere between 550k to 600k USD. With a starting point of around 440k and adding the projected savings, dividends the lower threshold of the interval is somewhere around 550k and depending on market performance 600k should be realistic.
✅ Retirement portfolio
Starting point for combined retirement accounts are around 425k USD, and when adding an expected 40k USD contribution will bring portfolio to 465k USD. Assuming a conservative return I will be aiming at a level around 490k USD.
✅ Net Worth
Boiling everything down, the goal for the Minimal5 net worth next year is to reach 1.750.000 USD.
What are your goals for 2020?
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