In theory, I should be able to obtain at least 1 million dollars 10 years from now. As long as I stay frugal, and invest using principal of dollar cost averaging, and occassionally rebalance my portfolio (this is currently my biggest weakness), then I should be able to conquer that million dollar milestone.
How did I start believing that I could achieve financial independence?
I started by reading “The Millionaire Next Door” when I was young and just starting college. The problem with the book (at least the edition that I read), was that the numbers were a little dated, but the principals still rang true!
What is helping me focus on my goal of becoming financial independent?
- Automated investments. Using this technique, I’m saving for my Retirement and my kid’s future college expenses.
- Statistics on the rich and the bell curve distribution of wealth in American… This feedback helps me gauge whether I’m behind or doing okay.
- Spreadsheets to track my progress. Today, there are online site that can accomplish this now, like www.mint.com and www.networthiq.com. I also keep a milestone spreadsheet just for motivation.
- Quality books like “The Millionaire Next Door”. Examples of the wealthy in “The Millionaire Next Door” gave me hope. After reading this book, I realized that one don’t have to be born into wealth to achieve it. In the past, I read about the exceptions, but I always thought that I’d have about as much a chance of getting rich that way as I would getting rich via winning the lottery…, pretty slim. “The Millionaire Next Door” gave me hope and enabled me to Believethat in it was possible after all!
- Picking the perfect risk model for my core investments (especially those in my 401(k)). Although, I still do play with a little bit of cash in speculative investments.
- Saving more than 20% of my salary. It takes a little bit of sacrifice now to payoff later.
What tools are you using to obtain the financially independent goal?