We've set ourselves a few baby steps for achieving our own version of Financial Freedom. We are living frugally while gradually building wealth and working towards our dreams.
- Pay off all consumer debt - completed 2009
- Fully fund a one year emergency fund - completed 2010
- Increase Net Worth to at least £100k/$162k by December 2011 - achieved £91,608
- Save 50% of our net income from January 2012 onwards - completed July 2011
- Increase Net Worth to at least £125k/$200k by December 2012
- Be earning > £500 a month in alternative/passive income by Dec 2015
- Increase Net Worth to at least £185k/$300k by December 2015
- Pay off UK mortgage by
20172015?? - Increase Net Worth to at least £300k/$487k by December 2020
Ongoing Five Year Financial Plans:
2011
2011
Fully fund a ‘First 6 Months Abroad’ Fund (£6,000)– achieved £5,000Fully fund a NY 2012 Travel Fund (£4,000) -achieved £3,000Mortgage balance – savings target is below £90,000– achieved < £85kIncrease Net Worth to at least £100k/$162k by December 2011- achieved £91.608
2012
- Save > 50% of our net income
- Complete Manhattan travel goal (2012) moved
- Fully fund a NY/Washington 2013 Travel Fund (£4,000)
- Reduce our mortgage debt below £83,000 (by December 31st)
- Achieve our 2012 financial goals
- Increase Net Worth to at least £125k/$200k (by December 31st)
2013
- Save > 50% of our net income
- Fully fund a NY 2014 Travel Fund (£4,000)
- Reduce our mortgage debt below £60,000 (by December 31st)
2014
- Save > 60% of our net income
- Fully fund a West Coast USA 2015 Travel Fund (£5,000)
- Reduce our mortgage debt below £35,000 (by December 31st)
2015
- Be earning > £500 pm in alternative/passive income
- Reduce our mortgage debt below £15,000 by December 31st
- Our mortgage balance – savings = zero by December 31st (stretch goal – mortgage free)
- Increase Net Worth to at least £185k/$300k by December 2015
2016
- Move abroad
- Rent out house in the UK
