Last year, I decided to use milestones as a way of tracking my investment income stream progress. I’ve used milestones as a way to help focus on paying down my mortgage. The advantage of using such milestones is that it provides an extra incentive to accomplish a given goal (in this case increasing my income stream from investments).
For my milestone marks, I use the following table:
I’m haven’t completed level one yet, but I’m pretty close to half way there. Level 1 is especially important to me, because once that goal is met, I’m planning on using that money for funding the kid’s sports programs and activities.
Once I conquer level 1, I plans on using the next $5,000 for 1 good vacation once a year. I don’t think I can afford overseas vacations on just $5,000 though, but it should get me some very good vacations in the US.
Once I hit this level, I’ll use it just as an enhancer. The money from this level would be used to have even better vacations and to continue to support sports programs that my kids are in.
This level should be used for providing entertainment for the year. I would be used for going out to eat, movies, trips to the zoo and other similar fun things to do.
Level 5 and all levels above this level would be used to accelerate the grown of dividend stocks. This is my going for gold level, where my main goal is to accumulate more money.
While these levels are subject to change, this is my plan for now. I think it’s a good one, time will tell.