Friday, December 19, 2008

Financial Freedom Goal Setting

I have learnt from previous workshops that goals must be SMART:

S - Specific
M - Measurable
A - Attainable
R - Realistic
T - Timely

In my earlier postings, I defined financial freedom for myself as when my passive income exceeds my expenditure. I gave myself the timeline of 2022 to bring down my monthly expenses to $2800 and to bring up my monthly passive income to $2800.

Based on increasing my passive income by $2400 every year, I will be able to increase my monthly passive income by $200 each year. The plan is as such

2008 - $200 (achieved)

2009 - $400
2010 - $600
2011 - $800
2012 - $1000
2013 - $1200 (Car loan fully paid for)
2014 - $1400
2015 - $1600
2016 - $1800
2017 - $2000
2018 - $2200
2019 - $2400
2020 - $2600
2021 - $2800 (Housing loan fully paid for)

Therefore, by 2022 I will be effectively financially free! Of course, this is based on the assumption that I have paid off all my car and housing loans by then.

2 comments:

  1. hello ff,

    I think monthly expenditure will only go up, not down.

    Thanks for the good post. It has always been a good read for me.

    Merry X'mas and all the best in generating more passive income.

    Cheers!
    dream

    ReplyDelete
  2. Merry Christmas to you too. Thanks for dropping by =)

    ReplyDelete

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