Ooooo this tickles my fancy.
For now the Financial side only even though the health side may be even more impressive … it Is basically the same but with different words 😊
My Milestones, in order of import:
Produce my first Written Financial Plan – This Living Document Prioritized Expenses (Outflow) and Allocates a job for every cent obtained (Inflow). This was the first BIG step in getting my silly expenditures under control, seeking efficiencies --- and really looking into making, tracking, and progressing towards large goals (large purchases, vacations, retirement at a certain age, etc). This plan provided the foundation of Cashflow Planning, Investment Policy Statement, Proper Insurance Guidelines, and Proper Estate Planning. Without this foundation it was very difficult to progress in life. Using this same concept applied to Health, applied to spiritual, applied to business, etc has been Amazing!
Eliminate Credit Card Debt - Any CC debt carried is now viewed as an emergency situation. I’ve realized that buying beyond one’s means is the quickest way to snowball away ones’ future happiness. I now consider the only acceptable use of using CC is for budgeted expense rewards harvesting – paying off the balance every 2 weeks. I now consider carrying a CC balance only IF the Emergency Fund has been depleted in the event of a Job Loss so that the family need not go hungry.
6 Months Emergency Fund - While not the dire situation that carrying CC debit is, funding a minimum of 3 months of my EF should take priority. The EF is ONLY to be used for base living expenses during the loss of a job, or during a major catastrophe (home ruin due to natural disaster, life threatening medical service, etc). This should be placed 100% into a ‘high interest online savings account’. At 3 months of savings the rate of accumulation to this fund may slow. At some point I may begin to move this into a Taxable Brokerage with the concept that each dollar in a broad market ETF is worth $0.5 of cash (with the thought that the market could crash 50% when I actually NEED the funds).
Zero Net Worth - Most folks live beyond their means and never achieve a positive Net Worth. I had EXTENSIVE negative Net Worth between silly frequent new luxury car financing, huge personal loans to pay off credit cards and medical expenses, huge cc balances, 100k+ student loans in a decimated industry, and a McMansion mortgage. Following my Financial Written Plan illuminated the path which led me out of this Joneses mess.
Zero Student Loans - Student Loans are the only debt that are seldom forgiven by the court system. Assuming the interest is below 4%, I personally do not pay more than the fixed rate minimum on these. My one and only remaining ‘small’ student loan hoovers just over 4% with a current balance of 38K.
Tracking Net Worth Quarterly - This one is fun. Over time, following a proper written financial plan led to exponential growth. Zero NW took a very long time. The first positive 100K took a long time. Now, even should I never contribute another penny to VTI/VXUS/Cash I expect my NW to double every 6-8 years.
Cost Financial Independence (FI) - The point in time when, if I never invest another dollar, those investments will grow to cover Lean FI at full retirement age (treating social security as if it will never be paid).
Giving up Income / Massive Stress / Reaching FU Money / Enjoying Sabbatical – stepping away from all income for 1/3 of a year, enjoying a mini-retirement, then saying yes to a low stress opportunity that covers base living expenses and provides the potential to grow into something fantastic.
Funded Kids UTMA (Convertible into 529 Should College Route be desired) – Lean CoastFi reached for each child before their 8th birthday. In this case defined as the amount that based on average returns may likely reach inflation adjusted 1.2M by age 65 (80% VTI 20% VXUS).
Not yet obtained but in-que:
Lean FI - The point in time when my investments are worth 25x annual cash outflows. Market Downturns may require part-time work or reducing expenses while withdrawing only from the cash portion should it be time to step away from the rat-race again.
Lean FI with Yield Shield - The point in time when my investments are worth 25x annual cash outflows AND I have 1.5 years of Cash (plus 6-month EF). Market Downturns may require pulling from the Yield Shield rather than liquidating equities.
Debt Free (Other than a 30 year fixed Mortgage) – hoping to milk this 3% fixed rate for as long as possible, however I have no desire to carry even this Debt going into RE.
Debt Free -
Fat FI - The point in time when my investments are worth 30x the annual cash outflows. At 3% withdrawal, adjusted yearly for inflation, this money is highly improbable to ever run out (Thanks Trinity & Re-Balanceable Investment pool: 60% VTI, 20% VXUS, 20% Cash/Bnd PLUS 6 months EF).