Achieving Financial Independance

This post details my Financial Independence Goal System

Perhaps the first step of achieving anything is to have a Goal System.

As such, i have adopted Google's Objective and Key Results (OKR) system* for achieving financial independence as follows:

Objective:

To achieve financial independence by 2030

As measured by the following Key Results:

(1) At least 1 Million in liquid assets with no debt

(2) Savings of 60K per annum from 2021 to 2030

(3) Annualised investment return of 6.6% from 2021 to 2030

(4) Initial investment capital of 200k by Dec 2020

(5) Annual Expenditure of <50k from 2031 onwards

Feel free to adopt the template for your own use by changing the underlined sections.

The reason why i will start investing proper in Jan 2021 is to give myself time to research on the various investing options available and also to be on the cautionary side given the unprecedented 10+ years bull market. A financial correction would allow me to maximise my gains. Regardless, beggining in Jan 2021, i would adopt a cost averaging approach and deploy my capital in phases. Right now, my current thinking would be to eventually adopt a Stock to Gold ratio of 70:30. I would be blogging on a monthly basis as a form of update as well as to log specific actions taken to (1) improve my savings rate, (2) reduce my debts and expenditure, and (3) grow my capital. Happy new year to all!

#FIRE #FINANCIALGOAL