Goal Setting and Investment Plan
Updated: Jan 3, 2019
I have a friend of mine who used to say:" Aim for the stars, if you Fail, you'll end up in the sky" or something of the sort, I don't remember it accurately; nevertheless it is the one quote that comes to mind when I think of what I want to accomplish in the very short term.
I have decided to set a goal for myself. I want to reach 500K usd savings in the next 3 years. If you've read the blog from the beginning you know my bank accounts are all laughing at the same time. However, hear me out, it isn't that I don't have the potential, it is that I have just never practiced what is spelled out everywhere....STOP SPENDING or should I say, overspending, since truly some expenses can't be avoided.
I have devised my plan as follow, I curb entirely my spending. No more restaurants, no more Cinema, none of that delicious Ice Cap (See you Timmies, you been a good friend). I will do an experiment, whereby I will, for the next 3 months, save almost all of what I cash in, then I will have a proper budget to work on. My wants are a thing of the past, from now on only my needs are the only things to be taken into account.
As far as the savings are concerned, seeing as how the market is currently on the fritz, I will ride it and invest periodically rather than the lump sum I would put into my portfolios whenever I would remember to do it.
The savings account will get a bigger chunk, since I can move the money at will, and not risk losing it.
My checking account is henceforth rendered useless. From now on, I will use my credit card which gives me cash back into a savings for eligible expenses. Besides I will pay off the card entirely every month, hence not wasting the interest I could have gained on the cash that would have sat in the checking account. If I remember correctly it is called Opportunity cost; Shout out to my Economics professor at University. Who knew I would ever end up remembering even a single thing of what he taught me.
The Amazon FBA business will be a nice addition. I just found a new product, that I may just decide to launch soon. I will, however, not factor it into my calculations; well, so long as I don't make it my primary way of making a living.