Setting Goals & Action Planning

I’m going to learn Spanish. I’m going to learn to be a good swimmer. I’m going to write a book. I’m going to retire early. These are all goals that I have. It’s important to have goals, they give you something to strive for. I believe in improving myself everyday and so should you.

Each of these goals has a different end point, which makes planning difficult. The result of writing a book is a book; simple. How does one quantify being able to read, write, and speak Spanish? It’s a little bit subjective. What is a good swimmer? Early retirement just means you stop working. Seems easy enough? If only it were.

Money makes the world go round. You need it so survive in this day and age even if you farmed all your own food and made your own clothes, you have property tax to pay which requires Canadian Dollars. To retire early you need to figure out how much money you need per year to survive, and figure out how to get that amount as a return from your investments. It’s impossible to know how long you’ll live, so it’s ideal to live off your dividend and your principle investment amount will be a great emergency fund.

I found my goal amount, and setup a number of milestones to hit along the way. In a spreadsheet I have an additional column to make note of when I hit the milestones. Here’s what I have:

  • $15,000 Net Worth
  • $30,000 Net Worth
  • $50,000 Net Worth
  • $75,000 Net Worth
  • $100,000 Net Worth
  • $150,000 Net Worth
  • $200,000 Net Worth
  • $275,000 Net Worth
  • $350,000 Net Worth
  • $450,000 Net Worth
  • $600,000 Net Worth
  • $750,000 Net Worth

Feel free to put in smaller milestones if you really need to see the progress. The idea of reaching financial independence to me is a milestone enough, but these are nice to see, too.

Happy Saving!

-Mike

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