I read about people (through their blogs) doing the Early Retirement Extreme thing and I’m very impressed. But, that really takes a lot of sacrifice and so I’ve resigned myself to working for a few more years at least and taking it more slowly. I don’t hate my job and most days actually enjoy it a lot.
A byproduct (or cause?!) of this is that I don’t have a budget, but that’s not really a big deal to me since I don’t think I’ve ever spent more in a single month than I had coming in and things like credit card debts
have never been a problem. I guess I just live in perma-frugal mode inside my head. But, I most definitely want to become a lot more intentional about saving more of my salary to invest in Dividend Paying Stocks, which is by far my preferred method of generating passive income because it’s like other people do all the work for you.
Which brings me to my goals:
1. Build a $10 000 emergency fund (done!)
2. Save $1500/month. I generally take home between $3000-4000/month after taxes and deductions, depending on OT, so this is really possible without a significant amount of effort. Which means that by December (8 months), I will have added at least $12 000 to my brokerage account. I actually want to save $2000/month for a total of $16 000.
3. I want to increase my brokerage account investments to $200 000 within the next 3 years (by December 2016) and $300 000 within 5 years (December 2018). This will of course depend on the market, and while I think we’re due for a correction in the short-term, we’re actually in a secular bull market, which means that the stock market will be going up over the medium-long term.
This will require adding more capital, being smart about buying on dips, as well as reinvesting dividends wisely.
Readers: what are you financial goals for the next 3-5 years?