2021 Financial Independence Goals

 Having a blog is fun thing to do. You can write about your favorite subjects, or anything really.  Your blog keeps memory of your thoughts, ideas, memories, goals.  I can also review what I promised. I have been consistent on meeting my financial savings and investments but not so much on development, which I am convinced is the key.

 

Looking at my income stream and assuming it will remain the same I need another 15-20 years before I can reach the financial independence.  While it is quite a long time away one of my real concerns is to get ready for the second life – what to do, hence the development is important. Quarantine time gave me insight into spending time at home.

So how can I make my goals achievable? I think that I need to scale back. If I can do more -great.

 

Financial goals:

a. Save 20% on the income - Accumulate $25 K a year.

b. Chose where to invest it and when.

 

Blog:

a. Regular monthly updates.

b. To cover 6 themes on financial independence.  

 

Educational:

a. Read 3 books from the list.

b. Publish the books reviews.

c. Corporate finances to study in detail.

 

- Be happy.  Run 600 miles during the year. BMI at 26.3 by December. Loose 2.5 pounds a month.

 

What are your 2021 goals? Is it something you recommend I do more or stop doing?

2020 Financial Independence Goals review

 This extraordinary year came to the end.  My portfolio went up by 15%.

Financial goals:

- Save 20% on the income - Accumulate $25 K a year and invest it either in one of the existing funds or new one. – This goal is only partially complete. I accumulated $24 K but not invested. The markets are all time high, so it is no point to invest it now. I have not selected where I want to invest them.

 

Portfolio:

- Develop additional income source in full, potential reward about $2,000 a year. Target sites to be developed in full this year.  This is “make it or break it”. If I am not able to do this year, I will wind down niche sites and focus elsewhere.  My personal preference is to make it, despite disproportionate amount of time I might spent. – This did not happen. The main financial independence site generated some income. However, combined niche sites did not reach $2K a year. I need to re-focus the time elsewhere.

 

Blog:

- Regular monthly updates. – This complete.

- To cover 6 themes on financial independence, including mortgage one.  –  This goal is complete. Networth change past 10 years,  Mutual funds spreading, The rich vs. Poor, Junior ISA, Market Charges, Dividend Aristocrats,  Four percent rule.

 

Educational:

- Read 12 books from the list.  – Read only two. One of them is Enough by John Bogle.

- Publish the books reviews.  – Complete for the books that I read.

- Corporate finances to study in detail. – This did not occur.

 

- Be happy.  Run 1,000 miles during the year. BMI at 26.3 by December. Loose 2.5 pounds a month. – Ran only 240 miles. I thought that last year with 253 miles the lowest possible one.

 

What are your 2020 goals? Is it something you recommend I do more or stop doing?

 I need to think how to make this year goals smarter and to make sure that I will complete them.  How was your year and the goals achievements?

2020 Financial Independence Goals

The reliable road to financial independence goes through savings and financial markets speculations avoidance.  I would enjoy trading as mental competitive exercise, if I have spare money I don’t mind to lose. To do the same with core savings is too much risk for me.

Previously, one of my blog readers stated that I played "golden past, bleak future" song. This indeed how I felt myself in everyday life for the past three years. In the job I held my income was reduced by 40%, I was traveling 50% of my time without any compensation for it (people who worked in the office at the same level were paid the same). I gained 10kg in weight. I used to run 10 km in 35 minutes, I could only run 6 km in the same time now.

   Another reason is that immigrants are not accepted as socially equal.  Through my company I had a private medical insurance (almost useless in the UK, as you will see later). I could do one health assessment per year free.  After all the changes I had diagnosed with high cholesterol level and was told to manage it medically. When I went to my family doctor (general practitioner) to get the medicine I brought her results and the doctor’s contact details. She spent less than 5 minutes and said that there is no need.  Without further advice on what to do my appointment was over. Later I released that it is impossible to complain anywhere about medical mis treatment in the UK.  

The turning point was an appointment system at the general practitioner’s – when it is your time, they put your name on the screen in the hall and machine would read it. If you have an English name, lets say “Henderson” the machine would read it correctly.  If you happen to have “Janssen”, “Hwang” or “Gutierrez” it will start spelling it out letter by letter very loudly.  The system is designed to abuse foreigners at every corner (unless you are very rich). Although this service is paid by me (as taxpayer) the concerns of equal treatment are largely ignored.

Combination of all of the above with the Brexit, moved me towards looking for a job elsewhere. I was successful in it.  The new job will enable me to save more money towards the financial independence.

Financial goals:

- Save 20% on the income - Accumulate $25 K a year and invest it either in one of the existing funds or new one.

Portfolio:

- Develop additional income source in full, potential reward about $2,000 a year. Target sites to be developed in full this year.  This make it or break it. If I am not able to do this year, I will wind down niche sites and focus elsewhere.  My personal preference is to make it, despite disproportionate amount of time I might spent.

Blog:

- Regular monthly updates.

- To cover 6 themes on financial independence, including mortgage one.  

 

Educational:

- Read 12 books from the list.

- Publish the books reviews.

- Corporate finances to study in detail.

- Be happy.  Run 1,000 miles during the year. BMI at 26.3 by December. Loose 2.5 pounds a month.

What are your 2020 goals? Is it something you recommend I do more or stop doing?

2019 Financial Independence Goals

Financial goals.

- Save 20% on the income. I would like to follow financial advice on an index card and save 20% of your money (Currently this is around 12%.  I will try to save any extra bonuses I receive and trim some of our expenses.

How am I going to save 20%:

- Accumulate $10 K a year (tax deferred contribution) in the private pension fund – equivalent of 401(k) , $10K to the tax efficient account.

- Accumulate $4 K of them towards long term house maintenance and make two additional monthly payments on the mortgage.

Financial goals have been complete in full. I saved additional money towards pension fund ($17 K vs. $10K before the tax relief or $21K after receiving tax relief).

Portfolio

 – No changes. Keep investing in the pension/retirement fund.  – The easiest goal for 2019. Complete. I did not get distracted and kept on investing in the retirement fund.  Which is now $52K USD after three years.

- Develop additional income source in full, potential reward about $2,000 a year. Target sites to be developed in full this year.  – This has not been done. There are many excuses but a few good ones.

Blog:

- Regular monthly updates. – Complete. This is happening.

- To cover 6 themes on financial independence, including mortgage one.  – Covered four  (67%) “Opportunity cost”,  “Mortgage”, “Enough wealth”, “Family budget”.

 

Educational:

- Read 12 books from the list.

- Publish the books reviews.

- Corporate finances to study in detail.

This has been not very good. I gain some unique insights into corporate finance as part of my role on the job but underpinning knowledge gains by reading the books lagging.

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. –

Running wise it was worst year on the record. I only ran 250 miles  or once a week 5 mile run. This needs to be changed following year.

Overall, I completed my immediate the most pressing goals, but to break through financial independence ceiling I need to do more home work and self-studying. As a foreigner I am not receiving equal benefits as my colleagues working in the same roles.  “Equal pay” concept does not apply in the European Union.  

Instead of using my time wisely I discovered an old computer game, which still has is adepts in online battles and spent 60 hours playing in 2019. This is such a waste of time, although very pleasurable.

How was yours 2019 year? Did you achieve what you wanted? What were the challenges and how did you overcome them?