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My Secret Financial Goal
By JLP | January 4, 2008
I have lots of financial goals. Fund a comfortable retirement, build a 6 month reserve fund, push my credit score over 800, blah blah blah. Those are all abstract goals, though. I can’t really make my goals concrete without coming up with completely arbitrary targets.
- I don’t even know what a comfortable retirement will look like for me, or what one might cost.
- I have a confession: I actually don’t feel like I need to have 6 months of expenses stashed in cash (which is probably why I tend to take a vacation or go on a shopping spree every time that account creeps above $5,000).
- My credit score is pretty good already (all three are at or above 740) and can really only improve with time.
Still, every month I take dutiful steps towards those variable goals. I shove a chunk of my income into my EF, into my Roth 401k. I max my Roth IRA every January. (In case you were wondering about the absence of one other popular PF goal, I bought my own home last year) I know one can never really save too much, and the idea that I can have multi-millions by retirement simply by following these steps for 40 years is compelling…
But the truth is that I’m blessed to be relatively secure financially. Barring a total recession/depression (which my simple savings habits can’t supersede anyway), I should remain financially secure as long as I allow what I already have accumulated to compound. True, I don’t yet have kids, and other circumstances are sure to emerge over my lifetime that will require lots of financial resources. But as long as I continue to save (and especially if I continue to be blessed by the generosity of my parents and grandparents), then I should largely avoid all but the most unforseen financial struggles.
In light of these facts, I would probably be best served to think and plan less about my finances and throw my effort and attention towards other matters. But I’m veritably preoccupied with personal finance (obviously). There’s always another goal to achieve, and I’m lucky enough to have the kind of head start that should make me capable of just about anything I decide to do.
So what keeps me motivated to save, invest, and boost my income? Why do I spend my days reading and writing about finance when all I really need to do is passively add to my index funds for the next 40 years? My secret financial goal: I want to be a millionaire by the time I’m 30.
I want to have a net worth–including all real estate but not including cars and other personal assets–of one million dollars. I don’t want to publish my exact age or DOB, but let’s just say I have around half a decade to accomplish this.
Becoming a millionaire at a relatively young age is truly a measure of success in my eyes, as well as a serious challenge. I can’t just save a certain percentage of my income in index funds and hit the mark effortlessly, as one can with distant retirement goals. To become a millionaire in just a few short years will require serious investing and hard work. I will have to take risks and even get a bit lucky.
I’ve already begun my journey. I close on my first rental property in a couple of weeks, and I’ve created a plan that just might get me there. Wish me luck!
More from Meg at The World of Wealth
Topics: Miscellaneous |
