Without setting goals and targets, I may not have achieved financial independence by the age of 35. Without targets, I may have shot my arrows all over the place. Goals are what allowed me to focus my arrows toward specific targets, greatly improving my chance of hitting them.

Every year, I create a list of objectives to focus on. This brings me guidance throughout the year and helps me visualize what type of future I am working towards. No one will grade your life efforts, so ultimately you are your own grader.

 

Important Factors In Setting Personal Goals

1. Differentiate your long-term goals from the short-term goals.

2. Ask yourself “What must I do to get closer to my longer-term goals?”

3. Set micro goals that will get you closer to accomplishing larger ones.

4. Set reasonable and realistic goals you can accomplish.

5. Set goals that are measurable.

6. Set specific and detailed goals with deadlines.

7. Make yourself accountable.

8. Remind yourself of your goals every day.

9. Review your performance at year end.

10. Reward yourself for your accomplishments.

 

Importance of Long Term Goals

One should always have long-term goals that are by far more ambitious than the short term. Such longer-term goals in general have more value to them and as expected more daunting to achieve. But as long as one’s efforts and path are in line with the long-term goal/destination, it’s more likely through time, your odds of landing on or near the target become more plausible. It may take 5, 10 or even 25 years but if one has the persistence with some great principles to help keep one disciplined, one can achieve surprising things over time. Some long term goals simply require “time” as one of their main ingredients needed to achieve.

When my net worth was near -$100,000 back when I was 21, it never crossed my mind for a second that I would make a million dollars in my life time. In fact, the million dollar goal was never part of my goals until much later.

When I was confronted with the question “How do I raise my net worth to a million dollars?”, the answers I came up with required dramatic changes to my life habits. I will share more on this on a different post next time.

So, what are my current long-term goals?

 

Long Term Goals

1. 10 Million dollars net worth. I am still far from the 10 million net worth goal but being challenged with the question on how to reach that milestone keeps me in a growth state of mind. This mind set really keeps my mind challenged and often forces me to think in many different ways.

2. Increase my dividends to $10,000 per year. Since the launch of LBF dividend portfolio, total dividend generated from July to end of December was $2435.10. That averages around $405.85 per month which would place me near half way to my goal. To reach $10,000, I would need $833.33 per month.

3. Increase my investment in real estate crowdfunding. I wish to allocate $50,000 into this investment.

4. Start a savings fund for a car. I went from 4 cars to 2 after FIRE. The savings from getting rid of to much cars was astounding! I will write more about the savings on the separate post soon. One of the two cars I own is now officially 20 years old! Quite proud of that I must say. Delaying the purchase of a new car played an important role reaching financial freedom. Cars are expensive to own! As for the exact type of car I plan on purchasing is not determined so I will simply set aside some cash for the inevitable purchase. I guess a modest target of $10,000 would be a nice start.

5. Travel the world for 6 months with family and loved ones. The ability to travel the world without the time and budget restrictions? Who wouldn’t want that, right? The freedom to explore the world as long as your heart desires. Many only fantasize about such possibility but who says one can’t achieve this?! I believe it’s possible.

 

Goals For 2019

1. Maintain and focus on improving my health. This year I want to primarily focus on my health. My efforts will be focused on making healthier food choices and being more physically active. As important as being physically active is, I also want to keep my mind active and challenged with more tasks as well. Looking at the way people such as Warren Buffet and Jack Bogle speak at their age really inspires me. But, having a close relative who over many years I have observed, slowly suffer from signs of dementia really motivates me just as equally.

2. Improve my writing skills. Being an early college dropout, I never really exercised my writing skills. One reason for starting this blog was actually to work on my writing ability. I actually enjoy writing as bad as I am. An English high school teacher comes to mind, who once told me, “Your thoughts and writing are interesting Kevin! You have talent!”, really was one of few compliments I received when I was young. I really didn’t hear much compliments growing up. Her simple comment had a profound impact throughout my life.

3. Write at least 5 posts per month. As much as I enjoy writing and sharing my thoughts with the world, I decided to set a reasonable bar on posts per month, so I don’t make this fun into a demanding chore.

4. Increase my emergency fund holdings. For over 10 years, my emergency fund held steady between $20,000 to $25,000. The amount was part due to the risks that came with my business operations and real estate investments. Since I have greatly simplified my investments and sold my business, my emergency fund was brought down to $15,000 as my new target. As of today, it sits at $12,000. My plan is to raise that back to $15,000.

5. Buy Umbrella Insurance for Rentals. Now that I am FIRE (Financial Independent Retire Early), it’s probably a good idea to plug some risk factors that may de-rail my FIRE lifestyle. This insurance adds an additional layer of coverage from potential lawsuits between landlords and tenants.

6. Visit Yellowstone. I still haven’t seen this place! I love beautiful landscapes, and this may be an interesting place to check out this year.

 

Conclusion

Life is so much more exciting when you set goals and continue to grow. 2018 was a great break in life, spent focusing on self-development and self-realization. Learning about my strengths and weaknesses and understanding myself better than ever.

I am really excited for 2019 and looking forward to discovering what’s beyond this FIRE lifestyle. The uncertain future excites me and with great anticipation looking forward to growing with the rest of the world!

Are you excited for 2019? What are some of your goals for the new year?

Thank you for reading.

Edit: Jack Bogle has passed away today. A legend and gift to many individual investors. May he rest in peace.