So, I’m a complete noob. I cracked on with my blog without outlining the key financial goals. At least I was assertive enough to start, eh?
I wrote the wrong, now I will right the wrong.
Setting financial goals are vital because they offer purpose and meaning to the overall process. Goal setting also means accountability.
With that said, here are my financial goals. The plan is to revisit these on a quarterly basis.
a) Retrieve 1.4k owed to me
£600 is owed to me from a friend who had an emergency. It was loosely agreed to be paid back by December but I am allowing for January. £800 is owed to myself. No, this hasn’t suddenly become a time travel blog, I have taken cumulatively taken £800 from a savings account (paying interest of 0.25%) for various reasons and I refuse to let it go. I will pay myself back if it’s the last thing I do!
Plan: i) stay in contact with the debtor to ensure January payment. ii) set up automated payment from current account to savings account (with an interest rate better than 0.25%!). How does £40 a month sound?
b) Pay off short-term debt asap
Right now, I owe around £185 on my credit card and PayPal credit. You’ll be happy to know this is all interest-free due to promotions. I am open to further borrowing but only if for investing or “Stoozing” purposes.
Plan: pay off all debt by the end of September.
c) Open a low-cost fund (or 2) on Vanguard
It’s very rare for an investor to regularly beat the market. That’s why I want to get involved with ETF’s and index funds on Vanguard where the fees are very low.
Plan: research the best funds available and save towards a February start.
d) Live within means every month
If you read my Wealth Building Update for July, you’ll know that I missed out on an easy £3 for no good reason. This is unacceptable. Moving forward I need to manage my money better so that I am not sweating by the end of the month.
Plan: i) monitor monthly investment spend. ii) build up a reserve in recently ordered Monzo account. iii) research budgeting & frugality techniques across personal network and analyse spending habits (maybe I should start using Money Dashboard again?).
e) Beat last year’s dividend total of £210.84.
So far, this year, £134.51 of dividends has come in. There are at least 7 dividend payments coming in between August and October so I am confident that I can make up the £76.33 before year-end.
Plan: not much I can do now so late in the year. Since January, I have entered or increased positions in 5 dividend companies. Need to start thinking about stock to buy to increase next year’s total.
f) Keep up the good work because…
…there’s so much more to do!
Plan: continue to invest monthly and save at least £300 a month. Continue to reinvest all incomes from investing to accelerate returns. Continue to source new revenue streams (Assetz Capital… You’re Next!). Continue to build a platform and develop skills by blogging. Continue to be on offence with side hustles.
g) Buy a property
Although I own (portions of) many properties on Property Partner already. I still believe in owning a property directly (as part of a well-diversified portfolio).
Plan: i) carry on saving into Help to Buy ISA. ii) increase knowledge of market by researching and networking. iii) shortlist potential candidates who may be interested in buying together.
Financial Independence, Retire Early.
The promised land. All expenses covered without needing to work. Stop work once I’m 50 (around 20 years from now). I’m visualising this as I type. Ahhh.
Plan: a, b, c, d, e, f, g and so much more!
Have any tips to help me achieve the above goals? How are your goals going so far, this year? I would really like to know!⬇