Friday, May 27, 2011

Progress with my million dollar goal

I often get asked how on track I am with my goal of becoming a millionaire. Currently it is going well, but could be better. I know by the end of this year things will be a lot different to what they are now and I know that my life now is a lot different to what it would be like had I not set this goal.


Why will it be better by the end of the year?

1.) My book 365 Ways To Make Money will be on the shelves, in bookstores, online and I will begin to make some money from it

2.) I am selling my house. It is about $200 a week cheaper for us to rent in a suburb we actually like vs. own/pay off the house we have in an area we don’t like. We do plan on buying again later, but prices in our area have been going up and up and we would like to sell on an up!

3.) I will have sold off everything I can and paid off our car loan. So I will not have so much ‘stuff’ cluttering my life and no debt. I will own the car I love outright. Even with the interest on the loan we will have paid by the time our car is paid off we will still have paid less than what the car is currently worth by about $1,500 - $2,000.

4.) My $40,000 challenge will be complete, so all renovations, holidays for family and the above car loan will be done. No more renovations/house to suck out all our money, no more repayments and no more holidays for a little while. (Well, big ones anyway, probably do a few camping trips though.)

5.) I have another project I am working on I plan on launching in 2 months. I won’t say much now, but I am pretty excited.

The above things will not only increase our income but significantly reduce our expenses. The difference in the mortgage repayments compared to the rent, the car loan, house maintenance, land rates, house insurance etc... equals about $450 or so a fortnight. That’s right. I will be $450 a fortnight or $11,700 a year better off. That is a big difference!

I won’t own a house, but since to me (and most financial people I know and read) a house is NOT an asset, I am ok with this. I can grow my investment portfolio instead and create streams of income THEN look at buying a house.

We are also not 100% sure where we will live, so we would like to rent first to see if we like it. If we don’t it is much easier to move on when renting rather than trying to sell and buy again (which is ridiculously expensive.)

Since I have had some privacy concerns recently, I am not really comfortable disclosing my current net worth, but needless to say I am well on track.

4 comments :

  1. You're doing great! I hope I can be as focused as you with our plans and goals. It seems we write up our goals and make a plan on how to get there, but then we always seem to go off track. Well done :)

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  2. Thanks Tubbah. I think the execution of our plans is the hardest part for most people.

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  3. I'm really interested in your comment about a house not being an "asset", as this is one of the big parts of my wealth plan - I'd love to hear more of your views about this!! Maybe an idea for a future post? Anyway, keep up the great work!

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  4. Hi Scather. Good idea, I will write a post on it later. Basically I do not class it in my assets because an asset is something I can liquidate for cash and if I had sold my home I would still need to live somewhere. I still see property as an asset, just not the one I live in. HTH. I do still think owning a home should be part of a wealth plan.

    I'll explain it further in a post soon. Thanks for the suggestion. Love your blog too.

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