Financial Goals for 2020. | A Financial Conundrum. | 5 Financial Goals for 2020 and why I’m taking a balanced approach.
Life changed drastically in 2019 when I began working part-time. It changed everything.
Prior to accepting my current position, I was struggling with the daily grind. I enjoyed my work and respected the company I worked for, but I didn’t take kindly to working 5 days per week. Hence my quest to elude the 9 to 5 and put an end to the soul crushing grind.
But here’s the thing—I just needed more time and everything would’ve been ok. That job would’ve been the perfect fit with a higher salary and a few less days per week. I just can’t take that dreadful Monday morning realization that I have to repeat Monday for the rest of the week. I mean, you wake up too early, work without any creative input, force-feed yourself, and then force yourself to sleep. Then repeat, repeat, repeat, repeat, repeat.
Part-time Jobbing
Anyways, the good news is that part-time jobbing is working out well. Almost too well.
In fact, I haven’t even found myself wanting to write about FI as much because I seemingly have enough time and fulfillment. It’s as if I achieved the balance I was searching for.
On average I work 15 hours per week now. This means I work less in two weeks than I was during a one week stretch before. I hardly need to chase time anymore. Every other week I have 4 or 5 days off in a row, which is enough time to avoid that feeling of hopeless emptiness that jobbing 5 days per week left me with.
Additionally, I work for an organization that provides me with personal fulfillment. I don’t feel like a loser that contributes nothing to society, and I can proudly describe the company I work for in social settings.
My Financial Conundrum
This ideal situation and new found balance has left me with a financial conundrum of sorts.
If I no longer need to chase time because I have enough balance in my life, I no longer need to chase money. And if I no longer need to chase money, well, I don’t need to worry about saving as much.
It probably sounds crazy right?! But the only reason to chase money would be status or to own more things, or perhaps to brag about my net worth. Frankly, I don’t give a shit about any of that. I care about enjoying my time, the people I spend time with, and the quality of my life. That’s where happiness comes from. Of course, I do care about blogging and the challenge of building a dividend portfolio, but I can still be satisfied by working at a slower pace. This is ultimately why I’ve shifted to slow FI.
In turn, my financial goals for 2020 have become more balanced this year too. My goals are simple and a reflection of my financial conundrum.
Financial Goals for 2020
1. Pay off my student loan
My primary financial goal for 2020 is to pay off my student loan. This is because it’s the quickest way to increase my income, and since it’s within reach.
When I began paying down my student loan, it was nearly $23,000. Last year my student loan was around $7,000. Now it’s just $3,800. Finally!
Although it may sound downright stupid to be holding a 5 figure dividend portfolio while still owing $3,800 in student debt, my reasoning is not without logic.
First of all, I believe saving is more important than paying off debt because it provides options. I would not have been able to take a year off work without being a saver first. If I paid off my student loan and never saved, I would’ve needed to go into debt to afford a year off, so it never would’ve happened.
From the archives: Why taking a year off is Awesome AF
Second, I’m not someone that receives financial help. I never have. I don’t live at home rent free, nor have I received any help with education or anything. I don’t have someone to fall back on financially if I run out of money, so I like to have money in the bank. I wouldn’t have it any other way, to tell you the truth. Independence and being self-sufficient is something I have great respect for. It builds character. Financial help would make things too easy.
Thirdly, my returns in the stock market have outpaced the interest rate on my loan. I also find investing fun and haven’t been able to stop since I started. I enjoy incremental improvements.
2. Receive $628.27 from Dividends
The 2nd of my financial goals for 2020 is to receive $628.27 from dividend investing. This figure is based on the most recent forward dividend income projection.
Although I projected a higher number in last year’s financial goals, I am basing this year’s number on the most recent projection to keep things simple.
Rather than try to project how much money I will add to the portfolio, I am basing it on what is already invested because I know how much life can change in one year.
In addition, my income fluctuates from month to month now that I’m working part-time. I will admit that I want more hours so that I can pay off my student loan faster therefore increasing my cashflow faster. However, this is out of my control so my primary objective for the dividend portfolio is to maintain.
The goal isn’t more money. The goal is living on your terms. -Chris Brogan
3. Increase Forward Dividend Income to $675 through raises, dividend reinvestment, and blogging
Of course, my main goal is to pay off my student loan and maintain my dividend business. But I still believe it can be increased through dividend raises, reinvesting dividends, and through blogging income.
This is an exciting challenge. Because like I said, I gain personal fulfillment through my job, dividend investing, and blogging. If I can still manage to grow the dividend business and blog while only working 15 hours per week, that’s winning in life to me.
4. Budget, Budget, Budget
The truth is that I occasionally feel like a personal finance fraud because I really don’t care about the numbers. I’m good at paying myself first but I’m also good at spending.
Related Post: View Yourself as a Business to Save Money
I mean, I care about dividend investing, analyzing companies, and documenting the incremental progress on charts. But this is not a competition to me. I don’t give a shit if someone else has a higher net worth than me, or if they earn more than me, or what have you.
In this blogger’s opinion, saving a high percentage of your income is only worthwhile if you have a goal of how to spend the time it will create. Otherwise it’s just numbers on a damn screen. And that would make the pursuit of financial independence an unfulfilling pursuit.
Related: 10 Meaningful Quotes About Pursuing Financial Freedom
Anyways, the point of all this is for myself to focus on my budget. I want to live within the budget I set. I must stick to this budget to maintain this perfect lifestyle I’ve created—the lifestyle that allows me to work 15 hours per week while still blogging and dividend investing.
Related Post: The Perfect Lifestyle is the reason behind Financial Independence
For this to work, I need to consistently stick to a budget that is outlined for the next month out. I must review and adjust my budget daily to stay on track. Otherwise, I get out of control with spending, even when I go slightly over budget.
5. Become more Frugal
As I mentioned, I occasionally feel like a financial fraud because I really don’t care about the status side of money.
I mentioned above how I’ve never received financial help. Well, this is great because I wouldn’t care about money at all if I had everything given to me. If I received a down payment for a house, or if my school was paid for, or if I received an allowance, I just don’t see how I’d ever value the challenge of building wealth. Like why would I care when it’s so easy?
Furthermore, I don’t come by frugality in a natural type of way. I like restaurants, traveling, and new clothes. I like to spend money and I value convenience.
But for my part-time lifestyle and financial plan to work, I must become more frugal. I need to stop buying lunches out, and I need to stop choosing convenience over money. Some people make it seem so effortless, but it’s really not for me.
Related Post: 5 Expenses to Cut-Out to Increase Cash Flow
In turn, my financial goal for 2020 is to become more frugal with the things that don’t bring value to my life. I still plan to spend money with the people I care about. However, I want to become more frugal with everything else.
Financial Goals for 2020 Conclusion
Long term I still want to grow the dividend business enough to cover my expenses. But I am ok with taking a slow FI approach because I have a flexible job that will still provide me with a pension.
In the grand scheme of things, I am able to build wealth at a slower pace because I have put myself in a relatively low risk situation. I don’t have much debt or financial obligations, and I’ve already obtained a position within an organization that offers room for advancement, benefits, and a pension. The worst case scenario is that I work part-time for a couple years and my portfolio stops increasing as fast. Even if that happens, though, I’ll be debt free and will have one of the best pensions in Canada during the later years of my life.
Plus, I have a chance to build this blog up, and I’ll always remember the years when I had all this extra time in my thirties if I ever do go back to full-time work.
In conclusion, I’m pretty satisfied with life overall. Frankly, it feels like I’ve achieved what I’ve always wanted from life: I have a respectable, fairly well paying job, time for creative endeavours like blogging, an opportunity to build my dividend portfolio, and time for the people I care about. I’m not sure if life has much more to offer than that.
Links to Previous Financial Goals
Financial Goals for 2018: Refining the Plan as Business Ramps Up
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The Final Dividend Income Projection of 2019 – $628.27
