The beginning of this financial year has had me revisiting the goals I set for 2017 and finding them increasingly more modest. Only two weeks into this month and I know I’m going to smash four of the five goals I set for myself. (The $100 dividends will prove hard)
With this is mind, I feel like it’s time to set some new, more challenging goals, that are a bit longer term. I still plan on tracking the goals that I set for myself for 2017, but with their completion feeling guaranteed, these new goals will be the new standard.
#1 – Have a positive net worth by January 1 – 2019
As of the end of June 2016 my net worth is -$22,990. This means in the next 18 months I want to increase this by $22,991 giving me a net worth of $1. This will by no means be an easy feat and will probably take a lot of luck to allow me the amount of work and lack of random expenses to get there. It works out to be $1,270 I will need to increase my net worth by each month in order to achieve this.
I chose this goal because I should be finishing my uni degree in November of of 2018, meaning I will be entering the workforce in the beginning of 2019. In my head it seems like a nice idea to start that off with a positive net position.
#2 – Have a $10,000 portfolio by January 1 – 2019
Again this goal will be hard to reach, but I feel that it will help push me to achieve near perfection. At this point in time, thanks to my recent buy, my portfolio totals a monstrous $1,411.45! Its safe to say I have a long way to go, $8,588.55 to be exact, which is $505 per month.
A $10,000 portfolio seems like a nice starting point to enter the workforce with and build upon for the rest of my life. Warren buffet always says that “compound interest is the 8th wonder of the world”, and for me $10,000 this early in my life will give me a nice glimpse of that wonder.
#3 – Owe less than $20,000 in personal debt to my Mum by January 1 – 2019
I’ve been fortunate to having a loving Mum support me since I finished high school for the past 7 years. However, she potentially took too much care of me and let me rack up about 30k in debt to her over this period, including a car. This may not seem like the best way to teach your son to grow up, but I’d like to think I’m not a complete screw up, so I think it worked alright. It’s time I started putting in the hard yards to pay it all back.
As of writing, I owe her $27,365.50. Reducing this amount to under 20k seems like a nice round number to aim for, and allows me to have taken a 3rd off my total debt to her in the last few years. To achieve this in this in the time frame I set, I’ll need to pay off $7,366.5, or $434 per month. Of the 3 new goals I’ve set so far, this feels the most achievable.
#4 – Have $5,000 towards buying a house
The 4th and final goal is the first step toward owning my own home. I know in today’s property market 5k is essentially nothing, but its a starting point and at least has me moving in the right direction.
At this point I have $815 already in my ‘house deposit’ account. This means I have another $3,185 to go ($177 per month). This isn’t a huge amount, but with my other goals in mind, it will be hard to achieve.