Wednesday, July 18, 2007

17 days to go...(2008 goals)

I need a new job. No, I'm not entirely dissatisfied with the pay, definitely not dissatisfied with the benefits but, I cannot maintain the same level of constant stress that my 1st job provides. I worked 11 hours today doing something I can't honestly say 'I love'.

As I approach freedom from debt, I see a definite need to re-prioritize my goals.

I guess a few of my goals for the year to come:

  1. Get a better paying less stressful job.
  2. To raise my Net Worth to $20,000 by around this time next year
  3. Raise my available cash or semi-liquid assets to $10,000 by the end of 2008.
  4. Save money to pay for an engagement ring and possibly wedding reception
  5. Begin grad school for MBA (focusing on finance or Internet/web systems) or MFA (to be poor & happy) & have my company reimburse me for most of it.
A few of my financial goals for the next 5 years:

  1. To start a part-time business
  2. finish writing(which is done) & editing(which is not) book and submit to book agents and/or Publishers (which I'll procrastinate to the very last to do)
  3. raise Net Worth to $500,000 or more by mid-late 2013
  4. Raise my available cash or semi-liquid assets to $200,000-300,000 by the end of 2013
  5. Have at least 1-2 rental properties.
And the dare-to-dream goals for the next 10 years:

  1. Have a net worth of at least $1 million (not including primary residence)
  2. Have semi-liquid assets approaching the $400-500K range
  3. Have mortgage on primary residence paid off
Hopefully these goals aren't too far out of reach. Since College, it's sort of been my goal to be a Millionaire by the time I turn 40. I was doing some simple calculations while in a stress-induced daze at work and figured how much money I'd have if I were magically able to double my money every year starting with next year and a starting amount of $10,000

  • Year 1: $10,000
  • Year 2: 2 x $10,000 = $20,000
  • Year 3: 2 x $20,000 = $40,000
  • Year 4: 2 x $40,000 = $80,000
  • Year 5: 2 x $80,000 = $160,000
  • Year 6: 2 x $160,000 = $320,000
  • Year 7: 2 x $320,000 = $640,000
  • Year 8: 2 x $640,000 = $1,280,000 -Millionaire
  • Year 9: 2 x 1,280,000 = $2,560,000 -Multi-Millionaire
  • Year 10: 2 x 2,560,000 = $5,120,000
As you can see, if I can just figure out how to double my money just about every year for the next decade - I'd be in a pretty good place to retire, or at least take sabbatical by the time I'm 40.

I'd really like to move to my 'dream-town' to live by that time. The average house in my 'dream-town' costs about $1 million as of today. I did the math and assuming that house prices appreciate about 10% a year a $1 million house will cost me $3 million a decade from now. That would leave me (and a family) with about $2 Million to live off after we pay cash for the house. Assuming living only on interest with a 5% return that would be about $100K a year for food, clothing, entertainment etc.

That'd be an OK lifestyle but $100K today and $100K in 2018 may not get the same things done. If I continued my magical 'double-your money' scheme for 1 extra year...
  • Year 11: 2 x $5,120,000 = $10,240,000 -Deca-Millionaire
I would have the $3.5 Million to buy that average house in my 'dream-town' (because it appreciated a little again) which is by the beach. I would also have $6.5 -7 Million to just sit in the bank and collect a modest 5% interest or $325,000(!!!) for food, clothing, trips, entertainment & art supplies.

Honestly, I need to figure out the 'double-your money' hustle and soon. I mean if Warren Buffet did it...why can't I? A brother's gotta dream right?

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