Friday, January 5, 2018

2018 Financial Independence Goals

Financial goals.
- Accumulate $10 K a year, with $4k of them towards long term house maintenance.
- Portfolio – no changes. Keep investing in the pension/retirement fund.
- Develop additional income source in full, potential reward about $2,000 a year. Target sites to be developed in full this year.

- Regular monthly updates.
- To cover 6 themes on financial independence, including  30 year forecast scenario.
- Read 12 books from the list.
- Publish the books reviews.
- Corporate finances to study in detail.

Family Budget:
- As long as the savings goal is made I do not mind the rest. Aim to stay under previous year budget.
- Be happy.  Run 1,000 miles during the year. BMI at 26.3 by December. Loose 2.5 pounds a month. 


  1. Your goals sound very similar to 2017. And these are a lot of goals. What are the one or two important ones, that you really have to achieve?

    1. Hi eurfi,
      Good to hear from you. Happy New Year!
      They all important ones. Logically I could divide them into reality, hope and hedge.
      Reality: I need to maintain my family budget and save money towards retirement.
      Hope: Educate myself, get some side incomes and try to improve the cash flow. Many people focusing on curtailing their expenses, but financially there is not much gain in long run. The real way out is to get more money (I had it in the past).
      Hedge: I need to look after my health, as there is still 30 years of working before I reach my retirement (or I can afford one at the current savings rate).

    2. I do not consider it as (very) frugal. Sure, we do not spend a lot eating out or on entertainment (just no time between the kids, the house and working). But compared to your education expenses we can save quite a lot.
      Regarding "hard pressed" - I think you are. Is retiring in 30 years really so great? I miss time for myself and I can't (reasonably) get rid of the house, I don't want to get rid of the kids - which leaves only working time as possible target. And that is exactly what FIRE will do for me.

  2. EurFi,
    Indeed when I look in the mirror I see an overweight person who keeps huff and puff on a treadmill, while overeating. This is analogue to my finance.
    So I agree with you - I am hard pressed, not you. However I could not convince my wife to do otherwise.

    I do not think that retiring in 30 years is great. I came to realise that having $2 million would not allow me to retire early- market volatility, inflation and other risks could reduce the value of the nest egg and returning to workforce after a few years gap is almost mission impossible (on the same salary).
    For Financial Independence and Retiring Early (aka FIRE) I would need almost $10 million before I could seriously consider it. I do agree that having a good nest egg generating enough money to cover all expenses is a great comfort factor.
    However I would be very much interested to observe you and others doing it. Perhaps it will encourage me to do the same earlier (I still have another 20 years on mortgage ;-)