In Investing, Money, Wealth

Goals for 2020

Net Worth: Hit $1 million in net worth

I would comfortably hit this goal by June, but I am aiming to make it by April.

This will take a lot of saving, investing and willpower because I’ll need to pay business and personal taxes as well.

I’m already at $900K but this will drop, certainly, as I have taxes, and expenses, and am dependent on my investments.

Whatever may come, I am hoping to stay on this contract for the long long term and to rock a big net worth jump.

Income: Hit $12,000 in dividend income

My current dividend income per year is $7300 a year.

I want to increase it to $12,000 this year on average. That has always been my goal, because around $1000 a month sounds nice.

I’d like to eventually get it up to $36K a year, but at a 4% average yield, I need a capital base invested of $900K. I am nowhere near that (obviously).

$36,000 would be ideal, as it would just cover my general budget that I live on. Ideally, I stick to a $40K budget ($4K is for travel / fun, etc), and I can just live off that money indefinitely if need be, working here and there as I pick and choose contracts.

To not rely so much on my career to give me boosts in income and savings, would be nice. But, I am also not so worried about it because if push came to shove, I could retire today if I wanted. I just wouldn’t be happy, honestly.

I want a comfier income with more room to wiggle, and $40K is my minimum for a “awesome f-ing life”.


Investing: Save $200K in index funds

I need to equalize up my dividend portfolio, so if I am planning on funnelling a ton of money into dividend purchases, I need to shore it up with money in index funds as well.

I have a two-pronged base capital approach – index funds and dividends. I don’t want to rely too much on one or the other, so I am spreading out my risk by having a diversified portfolio.

Other significant investments I dabble in?

Small business lending – Lending Loop in Canada, Lending Club in the U.S.!

I am even considering actual private lending, by finding someone to lend to, and to loan $30K – $50K in one chunk. This is another avenue I am about to go down on but need to investigate more.

Expenses: Spend $5000 or less on shopping

This is a real challenge for me.

I’d like to spend $5000 or less on: clothing, shoes, accessories, jewellery, toiletries and makeup.

Shopping: Buy 99% secondhand only

No more retail. Secondhand only, or not at all.

Thrifted, and I am working on reselling things I find, and slowly paring things down.

The only things I won’t buy secondhand are things like underwear. I just can’t.

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Sherry of Save. Spend. Splurge.

I got out of $60,000 of debt in 18 months using TheBudgetingTool.com. Since then, I have worked 50% of my career (taking 1-2 year breaks), and quadrupled my income within 2 years of graduating, going from $65K to $260K (savings rate = 85%). I could retire today if I wanted, but love my work-life balance as a freelancing consultant in STEM (Science, Technology, Engineering, Math). I also post daily on Instagram @saverspender.

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6 Comments

  1. Vnss

    Where/ which accounts are you using for you dividend income and which account for index investing? RRSP, TFSA, non-reg?

    Reply
  2. Aisha

    Hubby and I are debt free and would love to invest in things other than 401k and Roth IRAs. Do you have any suggestions of literature to read for starting to invest in other ventures?

    Reply
    1. Sherry of Save. Spend. Splurge.

      Unfortunately, most books if not all, and blogs only talk about investing in investment accounts, or in real estate.

      Dividends are something you might be interested in, and a lot of bloggers focus on that 100% (not me but it is part of my strategy).

      I also do private lending on the side which no one talks about, and the equivalent in the U.S. is Lending Club.

      Reply
  3. s

    those are great goals! my goals are to save enough to pay my 2019 taxes and to invest more in the stock market also. i would love to have your net worth and dividend income! also, i am considering a makeup low buy in which i splurge on a few items a month, rather than buy soo much discounted makeup. i think that might be even more expensive though O.o having expensive taste is hard.

    Reply
    1. Sherry of Save. Spend. Splurge.

      Expensive taste is hard. It is why I have to work so hard to be successful LOL

      Reply

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