I think it’s so important to have goals, otherwise you’re just floating around aimlessly. One of my strengths (and also one of my weaknesses) is that I spent a lot of time thinking about the future – sometimes to the extent that I am living in the future, which is not ideal.
I spend a lot of time thinking about what I would like for my future and what level of wealth I would like to achieve.
There are lots of routes to go down for future planning, many people prefer the idea of retirement and living off a pension – and there are many good services you can employ, including James Hay Self Invested Pension Plans.
Personally, I want to go down a different route: the route of financial freedom.
The 8 days in Bali have been something like this:
Wake up, enjoy buffet breakfast
Go to pool to swim
Wander around town, getting a feel for the place
Exploring some more
Checking some emails, writing some posts
Relaxing in the jacuzzi or the pool
Yes, that’s my life right now… and how it will be for the foreseeable future. Why would I want to ‘retire’ from that?
I don’t want to stop working, learning or educating myself. I’d like to get to the point where I do have to work anymore, but choose to.
My Long Term Financial Freedom Goals
1) Have enough money in savings/invested to generate a full year’s salary as close to passively as possible
I imagine this will take at least 5-10 years to achieve, maybe longer depending on whether I choose to have a family or have any substantial unforeseen expenses in the next few years.
2) Own 1-2 properties freehold, for me to live in or visit
Once I am finally independent, i.e. completed my first goal, I don’t think I’ll stop working. I just want the option to. After then, I’ll start setting aside some serious cash to buy some properties. I am not sure whether I’ll wait to settle down a bit more by this time in my life or not, but I would like to have to the option to buy a home in cash one day, that would be a great feeling!
3) Own numerous properties I collect rent from
I always like the game Monopoly, and I wouldn’t mind making my life a bit like that. Property does hold a certain level of security for me and I’d really like to own a few that I can rent out and collect rent from. I think I’d prefer to have them managed through a property manager so I don’t have to deal with the stress of tenants.
4) Have an emergency fund that stretches to a year’s worth of living expenses
This might be one of the easier goals in this list to achieve. At the moment I have $12,000 in an emergency fund which would last me a year in Asia, but around half the time in New Zealand. Before I add any more to my emergency fund I’m going to be paying back my student loans… so this might actually take me a while to achieve the goal of a year’s worth of living expenses.
5) Not have to work, but choose to if I want
As soon as I’m financially free, I’ll have the option to stop working… but I doubt I will. I want to aggressively build my wealth. I don’t have a fixed number in mind, but my goal is to not worry about money. To have enough to ensure me, my partner and my family are financially secure.
What are your long term financial goals? Share them in the comments below!