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.