If you’ve read my post on my plans to retire by 30, you know I have quite the undertaking ahead. In order to climb this mountain I’ll need to commit to the goal of financial independence. It won’t be
easy, but it wouldn’t be worth doing if it were.
“The best way to achieve your goals is to have accountability. And there’s no greater accountability than a public statement.”
Ok that’s more of a paraphrase than a quote, but the idea is clear.
So, what better way to hold myself accountable to this major goal than by setting several milestones to help me reach it? (Fair disclosure, this post is actually inspired by J. Money at BudgetsAreSexy) And similar to J. Money, I ask you to set your own realistic goals and tell someone – or better yet, send your pledge my way and I’ll make it public for you!
To help me reach financial independence, I will do the following:
- Max out 401(k)
- Max out IRA
- Reduce unnecessary expenses
- Take calculated risks to increase income
This means I should be saving a minimum of $23,500/year. According to CNN-Money’s Retirement Savings Calculator this will give me roughly $500,000 at 5% interest in 10 years. Not near enough (actually nowhere near) but it’s a start! This is why the final bullet point is crucial.
If you read the Update #4 on the link to BudgetsAreSexy, you’ll see he has the same thoughts as I do toward this goal. The $1 million would be nice, but ultimately it’s the freedom it gives you. I am well aware that 24 year old me has no clue what is in store for future me, but without setting a goal I’ll have no direction in the meantime.
Follow my current net worth HERE.