Financial Freedom 4 All

Reducing Debt, Investing in the Future


Tips and Hints

Financial News

10 Year Plan, First Action

Today, I sat down with a nice spreadsheet created by tt from Retire At 30. I decided to throw in some round numbers, and make a basic financial plan. I decided that I want to start in 2006, end by 2015, and have $1,000,000. Also, I decided I would increase my annual contribution by 10%, and start out with $6,000. Here is what it looks like:

So, if I follow this plan, and get a return of 55% on my contributions, I will have just over $1,000,000 by 2015.

Now, I do not have $6,000 a year that I can contribute, yet. Once I start cutting down on some expenses, it will be no problem. But, my cars are not going to be paid off all that soon, and it looks as if I am going to have to wait a little over a year to refinance my mortgage. So, for 2006, I have to find $6,000 elsewhere. And where else can you find somewhat residual income? On the Internet. As you can see, I have Google AdSense on this blog. I do not get a lot from it currently, but there is potential. So, I am starting a new blog about mystery shopping called Mystery Money. This will allow for money in a few ways: 1) I will probably be able to get decent traffic for this blog, and get some AdSense revenue. 2) I will be able to refer people to various mystery shopping clearinghouses and make some revenue. 3) I will increase the amount of mystery shopping that I do, which will create more revenue.

So, I am going to try and create some more residual income, and hopefully put that towards my contributions.

Also, I am going to open a savings account with the credit union in my building. I have opened a savings account before, but it doesn't work out very well, because it is tied to my checking account... and with poor discipline, you know where that leads. So, this will not be attached to my checking, and it will automatically be withdrawal from my paycheck. I will only be taking about $25 from each paycheck, but it will add up, make me a member of the credit union, and give me somewhere to put my other contributions until I place them in some other higher-yeilding investment. Plus, by being a member of the credit union, I can easily refinance my vehicles at a much lower interest rate.

Categories: ,

Blogger Dave Says:

November 30, 2005 3:52 PM 

Yo. I don't understand how you can get a return of 55%? Am I missing something?

Blogger Dus10 D Says:

November 30, 2005 10:10 PM 

It is possible. It is just more work than sticking some money in a bank account, or stock and hoping to get lucky. Real estate is a good investment. You can put, say, $5K into a property, and get enough money on the mortgage to fix it up. Then, when you rent it out, think of it as a return on investment. They can pay the mortgage (which builds equity), and then still give you some spare cash. Just think if you made $250/month return on a property (equity included). That is $3000. That is 60% of $5000. Now, those deals don't just happen. You have to look very meticulously at the real estate market, get some good connections, pray a little, and maybe you can find a deal or two like that.

Then, there is the business aspect. If you start a business, think of it as any other investment. You put $5K into starting a business, as well as much of your own time. Come up with a certain value for your time (maybe that is based off of what you currently make). Anything over that is a return on your investment. Plenty of people have done. Some have become billionaires. It is possible to do this in 10 years... afterall, I think the current record for becoming a billionaire, from nothing, is 18 months.

Blogger Dave Says:

December 01, 2005 2:51 PM 

Excellent. I always regarded your plan as being quite ambitious. Now I know how you plan on carrying it out. Good luck. Keep us updated!

Leave a Comment


Search FinFree4All

Web FinFree4All


Previous posts

Blog Roll

Carnival Roll

Syndicate this site (XML)
Financial Freedom 4 All © 2006 Disclaimer
Ring of Conservative Sites Ring of Conservative Sites

[ Prev | Skip Prev | Prev 5 | List |
Rand | Next 5 | Skip Next | Next ]