Goals in 5 years. Detailing my long-term goals to get a house and build a $100,000 portfolio that pays $5,000 annually within 5 years. This post may contain affiliate links.
As you get older, your ideal lifestyle becomes clear.
You know what kind of lifestyle you want and you understand how to obtain it.
In my case, I want financial independence through dividend investing. I want to be able to afford to live off dividends in 10 to 15 years.
However, since I’m a homebody, I also want to own a home or condo. It adds another asset to my portfolio as well.
Eventually, I want to retire early and pay off the remaining years on my mortgage with dividends. Technically, I will be reinvesting my dividends into real estate.
Of course, it’s challenging to afford real estate and build a dividend income portfolio at the same time. Both require a lot of funding.
But from where I stand, my plan is to make tremendous progress with both over the next 5 years. More specifically, I want to build a $100,000 stock portfolio while simultaneously obtaining real estate within 5 years or less.
Here is a summary of my goals in 5 years to get there.
Goals In 5 Years — Building A $100,000 Portfolio And Getting A Home
Below is a summary of my goals in 5 years for building a $100,000 portfolio and getting a place of my own.
Build $100,000 Stock Portfolio
The most important part of this process of the next 5 years is I need to build a $100,000 portfolio. This will ensure that I have enough money invested to reach $250,000 in 10 years.
Based on what I have invested already, I am on pace to have a $100,000 portfolio within 5 years or less. I haven’t mentioned how much I have invested and I don’t plan to. I do reveal how much dividend income I earn though. Check out my dividend income updates if you are interested.
Over the course of the last two years, I have made tremendous progress with my investment portfolio. It will increase significantly over the next few months as well.
Earn $5,000 In Dividends Per Year
Along with growing my portfolio to a value of $100,000, I want it to generate at least $5,000 in dividends annually.
This can be achieved through saving more money and dividend raises.
Once you earn $5,000 annually in dividends, you can increase dividend income by $200 annually alone by reinvesting those dividends in stocks that pay a 4% yield.
In short, my goal is to reach at least $5,000 annually within 5 years because the dividends with begin to significantly compound.
Grow the Blog to $5,000 Annually
Interestingly enough, my dividend income and blog income are about the same annually.
They will probably each generate $1,000 in 2021.
Based on the same trajectory as my dividend income, perhaps I could earn $5,000 annually in 5 years.
Of course, my job and my dividend income are my main priorities.
But my blog has become a legitimate income generator. It’s not a lot, but it has a lot of potential.
If I can grow the blog income to $5,000 in 5 years, I could earn $10,000 annually from blogging and dividend investing.
That would put me in a pretty great spot to retire completely in 5 to 10 more years.
Related: Blog Income Report For May 2021: How I Made $233.03 From Blogging
Have A Down Payment Or Buy A House or Condo
In addition to building my portfolio and blog business, I want to have a downpayment on a house or condo within 5 years.
In short, I want another asset and I want to build equity instead of pay rent now.
Eventually, I will be able to pay my mortgage with dividends.
Since it’s best to use my current income to get a mortgage, I want to get a mortgage within 5 years to put myself in a position to pay it with dividends in 10 years.
In truth, I have been starting to look around. I’ve been traveling to different cities to ponder whether or not I could live there and to see if they have decently priced homes. There are some with potential, but I’m also still considering staying in the Toronto area and just buying a condo.
Regardless of whether I choose a condo in the city or a house in a smaller city, I want to buy within 5 years or less.
So, I am saving some cash for a downpayment on the side of my investment portfolio.
Build a $15,000 Emergency Fund
When you rent and don’t have too many responsibilities in your life, you can get away with a small emergency fund.
Some people avoid emergency funds altogether.
But once you own a house or condo of your own, you have to have a real emergency fund in place. At some point you will need it.
As such, I want to have a $15,000 emergency fund on the side once I buy a house or condo.
Buy a Car
Admittedly, buying a car isn’t a high priority on my list.
My priorities remain building my dividend income portfolio and on acquiring a house or condo.
Depending on where I live, though, I might have to buy a car.
For example, if I buy a place in a smaller city, I would most definitely buy a car.
If I had to, I would likely buy a brand new Toyota Corola. I’ve already been thinking about it.
On the other end, if I end up getting a condo in a transit accessible area of the city, I might opt not to have a car. This way, I could avoid paying for parking, insurance, and maintenance.
When I need a car, I could just rent one.
But in my forties, it’s likely that I’ll want a car, so my goal is to buy one in 5 years or so.
Goals In 5 Years — Final Thoughts
My goals in 5 years are specifically designed to be on pace to become financially independent within 15 years.
Since my long-term goal is to be financially independent, my goals in 5 years are to build a $100,000 investment portfolio that generates $5,000 annually from dividends.
Additionally, my goal is to obtain a mortgage on a condo or house within 5 years or less. By obtaining a mortgage, I can add another asset to my portfolio and eventually lower my expenses.
Furthermore, I want to grow the blog business to $5,000 annually. This would put total income from dividend investing and blogging at $10,000 annually. I’d be well on my well to financial independence in 5 to 10 more years.
Lastly, I want to build a $15,000 emergency fund and potentially buy a car. The $15,000 emergency fund will be to pay for any house-related expenses that may come up. And buying a car will depend on whether I buy a condo in the city or a house in a smaller city.
In closing, these are my personal financial goals in 5 years.
What goals in 5 years are you working on?
Tell me in the comments below.
Other Personal Financial Goal Posts To Check Out
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