Time for an update on my journey to 10 million net worth. Another 3 months have flown by and let us see where we are shall we?

I spent the last 3 months focusing mostly on family and the important people around me. I really decreased my reading and consumption of business and economic news by at least a whopping 10-20%? 😊

I am realizing lately that the ability to be grateful with what you have today is a strong measurement of success.

Balance in life is important and with that in mind let’s go!

 

Why Am I Trying to Reach a Net Worth of $10 Million?

It is simply just a challenge for me. I believe I can achieve this goal and it has become a personal challenge to prove to myself that this is possible. I am not motivated by materialistic things in my life at this point. Investing has become somewhat of an intense hobby.

 

How Do I Plan to Achieve this goal?

I set myself up with some short term and long term goals. Some are kind of like rules I set for myself. Once I set up these rules, I take them seriously and I try to keep myself accountable. Here are the first 5 goals related to investments. Some of my goals have been slightly modified since the last update.

 

Investment Goals

• 2020-3: Generate $10,000 in dividend income
• 2020-3: Invest at minimum $1,500 per month into the LBF Dividend Portfolio.
• 2020-3: Reach a $50,000 Fundrise Portfolio.
• 2020-5: Maintain total investment returns between 6% to 12%
• 2020-6: Invest $100 per month into M1 Growth Pie.

 

Generate $10,000 in Dividend Income

Dividend investing continues to be a very educational investing experience for me. It really challenges you to understand a company’s debt structure, dig deep into the company’s financials, understand the environment the business operates in, and the legal issues surrounding the businesses. Especially if you are digging and reaching for yield. 🤞 Tell me to learn these things in my earlier teens and I would laugh at you… 😅

I’m learning a lot and that’s what’s important. I am projected to reach my goal somewhere between 2022 and 2023.

 

Invest at Minimum $1,500 per Month into the Dividend Portfolio

The LBF Dividend Portfolio had a total net inflow of $31,291.20 ($3,476.80 per month) by the end of 3Q. This is above my minimum by quite a bit due to the opportunity in March which had me deploying cash.

 

Reach a $50,000 Fundrise Portfolio

• Real estate portfolio is up 6.7% YTD
• Fundrise iPO is up 7.6% YTD
• Total Fundrise Portfiolio is up 7% YTD
• Q3 dividend payout was $85.00
• Total Dividends paid YTD is $479.66
• Goal completed: 55.1%

I have been neglecting this investment and I only made $1,000 in additional investment into Fundrise this year.

 

Maintain Total Investment Returns Between 6% to 12%

The goal is to maintain long term average investment return between 6% and 12%. Regardless of how the S&P performs, it’s more important for me to measure against myself and produce consistent long term growth in order to reach my 10 million goal.

The quarter ended on a strong note all while I continued to raise cash towards the rising tide. 🙄

 

Invest $100 per Month into M1 Growth Pie

How in the world is investing $100 a month going to help you reach a 10 million net worth you ask? Everything starts small my friend! 😊 Patience and persistence is key! This portfolio is a fun little side challenge I plan to accelerate once I am done with my $10,000 dividend challenge.

Made some adjustments to the M1 finance LBF Growth Pie.

Updates to Pie for Q3 2020:

• Added Ticker: NOW @ 4% of portfolio
• Added Ticker: TTD @ 2% of portfolio
• Ticker: GE lowered from 3% to 2%
• Ticker: LULU lowered from 3% to 2%
• Ticker: PLNT lowered from 3% to 2%
• Ticker: BA lowered from 7% to 5%
• Ticker: NVDA raised from 8% to 10%

And that’s a wrap for the investment updates!

 

Alt Income, Expenses, Cash Flow Goals

Here I determined 3 simple set of goals.

• 2020-3: Achieve positive cash flow every month of the year.
• 2020-5: Increase annual income by 6% every year.
• 2020-6: Maintain long term average savings rate at or above 30%

Let’s take a look, shall we?

 

Alternative Income

The plan is to diversify away from being concentrated from rental income. Watering my alt income to see if any of those will sprout someday. 🧐

• I added OhmConnect to the list this quarter. Save energy for a few minutes or hour and get paid! Love it.
• I only add to this chart when I make a withdrawal. You can exchange 2175 Swagbucks ($21.75 worth) for $25 visa gift card once every month. Leaving behind the remainder until I need it for something else. 😊

 

Cash Flow

• September dip is due to a remodeling project on a rental.

 

Income

• I had a tenant move out after 9 years. It dropped my income slightly but no worries. I was fortunate to have just found new tenants with 17% higher rent. 😊

• Luckily, my income is up by 19.4% which is much better than I had expected.

 

Savings Rate

• My savings rate dropped due to the remodeling expenses for a rental.

 

Net Worth Update

Goals:

• 2020-6: Increase net worth by at minimum 6% annually.
• 2020-6: Maintain a minimum 6% lifetime CAGR.

Snapshot of net worth from Personal Capital.

Net worth YTD: +7.2%

My net worth figures are calculated from my personal spreadsheet and may not reflect accurately with the Personal Capital snapshot above. I like to lower my expectations when it comes to appraising the property values.

Barely made it so far. This year was tough! I should not be complaining… The simple fact that your net worth is continuing to grow in such times when so many people are struggling is a blessing. I am extremely grateful for what I have.

 

ETA $10 Million Net Worth

Estimated Time Arrival (Best to Worst Case)

Destination to 5M: Between 9 – 17 Years

Destination to 10M: Between 15 – 29 Years

In 9 years with fairly modest expectations for growth, I will be a 5 millionaire. Then after another 6 years, I would be a 10 millionaire. Interesting…

Note to myself. Enjoy your journey! 🚀