Goals

2016 Goals

G1.1 Earn total dividend income > 2.0 times my monthly living expenses.

My monthly living expenses are $3,900 per Budget 4.0, so the target is $7,800.

G1.2 Emergency Fund >= 10 times my monthly living expenses.

Emergency fund target is 10 x $3,900 or $39,000.

Main Goal: Financial Independence

Here’s the progress of my Financial Independence journey year by year.

Planned vs Actual

Year Budget Contrib Growth Total Income Contib Growth Total Income
2011 3,650 7,000 0 7,000 0 6,742 53 6,795 0
2012 3,700 45,000 1,918 53,918 1,530 57,407 1,543 65,745 1,530
2013 3,750 45,000 4,967 103,885 3,975 45,816 7,218 118,779 4,299
2014 3,960 45,000 8,215 157,100 4,950 53,832 2,255 174,866 5,376
2015 3,900 45,000 11,674 213,774 5,850 49,359 -9,213 215,011 6,792
2016 3,900 24,000 14,675 252,449 7,020

Forward Projections

I use the following projections as a guide to see the minimum that needs to happen for me to meet my Financial Independence goals by age 65.

Year Age Budget Contrib Growth Total Est. Divs Target Months Yearly
Target $
2011 40 3,650 7,000 0 7,000 0 0.00 0
2012 41 3,700 45,000 1,918 53,918 245 0.05 185
2013 42 3,750 45,000 4,967 103,885 1,887 0.50 1,875
2014 43 3,960 45,000 8,215 157,100 3,636 1.25 4,950
2015 44 3,900 45,000 11,674 213,774 5,498 1.50 5,850
2016 45 3,900 24,000 14,675 252,449 7,482 1.80 7,020
2017 46 3,970 24,480 17,205 294,134 8,836 2.10 8,337
2018 47 4,040 25,480 19,947 339,560 10,295 2.40 9,696
2019 48 4,120 26,480 22,932 388,972 11,885 2.70 11,124
2020 49 4,200 27,480 26,176 442,629 13,614 3.10 13,020
2021 50 4,280 28,480 29,696 500,805 15,492 3.50 14,980
2022 51 4,360 29,480 33,510 563,796 17,528 4.00 17,440
2023 52 4,440 30,480 37,637 631,913 19,733 4.50 19,980
2024 53 4,520 31,480 42,097 705,490 22,117 5.00 22,600
2025 54 4,610 32,480 46,912 784,883 24,692 5.50 25,355
2026 55 4,700 33,480 52,105 870,468 27,471 6.00 28,200
2027 56 4,790 34,480 57,701 962,650 30,466 6.50 31,135
2028 57 4,880 35,480 63,725 1,061,855 33,693 7.00 34,160
2029 58 4,970 36,480 70,206 1,168,541 37,165 7.50 37,275
2030 59 5,060 37,480 77,173 1,283,194 40,899 8.00 40,480
2031 60 5,160 38,480 84,658 1,406,333 44,912 8.50 43,860
2032 61 5,260 39,480 92,695 1,538,507 49,222 9.25 48,655
2033 62 5,360 40,480 101,319 1,680,306 53,848 10.00 53,600
2034 63 5,460 41,480 110,568 1,832,354 58,811 10.75 58,695
2035 64 5,560 42,480 120,484 1,995,317 64,132 11.50 63,940
2036 65 5,670 43,480 131,109 2,169,906 69,836 12.25 69,458
2037 66 5,780 44,480 142,489 2,356,876 75,947 13.00 75,140
2038 67 5,890 45,480 154,675 2,557,031 82,491 14.00 82,460
2039 68 6,000 46,480 167,718 2,771,228 89,496 15.00 90,000
2040 69 6,120 47,480 181,673 3,000,381 96,993 15.85 97,002
2041 70 6,240 48,480 196,600 3,245,461 105,013 16.75 104,520

Assumptions

Budget assumed to increase at 2% each year.

Contributions assumed to increase at 2% each year.

Capital Growth estimated at 6.5% (4.5% real, 2% inflation).

Estimated dividend income is 3.5% of total value.

Values in the Target columns are approximations of the number of months that could be covered by the dividend income with some rounding to reasonable significant digits.

2015 Goals

G1.1 Earn total dividend income > 1.5 times my monthly living expenses.

My monthly living expenses are $3,900 per Budget 3.0, so the target is $5,850.

COMPLETED – 2015 income was $6,792

G1.2 Emergency Fund >= 9.5 times my monthly living expenses.

Emergency fund target is 9.5 x $3,900 or $37,050.

COMPLETED – EF was funded for a total of $37,913.29.

2014 Goals

I’ve set my 2014 dividend goal to cover 1.25 months of living expenses which is 1.25 times $3,960 or $4,950. This goal was completed in December 2014 by a total income of $5,376.

The chart shows the dividends from the stocks and funds in my Portfolio.

Historical Dividends

The following chart shows the total dividends from my Portfolio for each year.

8 thoughts on “Goals”

  1. Hi DL,

    I’m very impressed with your Historical Dividend Totals. You’re income has come a long way since Jan 2012. I’ve been Dividend Growth investing since Nov 2013. I’m making respectable progress so far, and I find it motivating to see what levels people can reach in such a short time frame.

    Good luck with your $5k goal, I wish you all the best!

    Cheers
    Huw

    1. Hi Huw,

      Yes back in January 2012, I received $5.46 in dividends from a collection of mutual bond funds which paid a monthly dividend. I was investing without any real aim at that time and it’s amazing the difference that creating goals and plans can have.

      Congrats on your progress so far – it looks really great! Dividends really are a gift that keep on giving…

      Best wishes on your financial independence journey!
      -DL

    1. Hi M,
      Thank you for the kind words! I appreciate it 🙂

      There’s a nice quote by Fitzhugh Dobson: “Without goals, and plans to reach them, you are like a ship that has set sail with no destination.”

      Wishing you all the best on your financial journey!

      -DL

    1. Hi Tristan,
      I was just thinking about this – the great thing is that even if I fail to beat my goals, I’ll still be in a much better position than had I not tried. So it’s a win-win all around!
      Best wishes,
      -DL

  2. Awesome goals and great to see such progress. Your snowball is about to start rolling and then it will be unstoppable!!! Glad I found your site. Onwards!
    Passive Income Dude

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