Financial Freedom Goals

Below, are the long-term financial goals that I’ve set for The Wifey and me. Have a read and see what you think. Wish us luck.

Goal 1:

To be financially free by age 52.

This is the overarching goal. After running a variety of numbers here, I believe 52 to be a realistic target for The Wife and me to reach financial independence. To me, financial freedom means that all our expenses can be covered by our passive income streams. I’m not just talking about our weekly shopping trips, leccy bill, council tax and the like. I mean enough coming in money for us to live with opportunities to afford travel, have fun and be free. Essentially, a life similar to the one we lead now without the necessity to be reliant on employment. If I want, I’ll be able to retire early. Because of our ‘FI’, we could ‘RE’ if we want to. FI is more important to me than RE at this moment in time because I am fortunate enough to really enjoy my job. Things can always change…

Goal 2:

To have an investment portfolio of £750,000 by age 52.

To meet this goal, we will need to invest £1666.66 per month to max out our ISA. If it compounds at an average of 5% over 20 and a bit years we will have met the goal. I will be 52. The better the returns are, the quicker we get there. If the returns are pants, then financial freedom will be delayed.  Here is a table showing years 19, 20 and 21 of £1666.66 at 5% , compounded and starting at age 32 with £19,000 invested (end of year 1 goal).

Year Invested Yr. Interest Total deposits Total Interest Balance
19 £19,999.92 £32,940.16 £398,998.48 £285,706.48 £684,704.96
20 £19,999.92 £35,654.26 £418,998.40 £321,360.74 £740,359.14
21 £19,999.92 £38,507.51 £438,998.32 £359,868.25 £798,866.57

Goal 3:

To have paid off the remaining £112,300 on the mortgage

Because we live outside the UK, our house is currently tenanted which brings in passive income and pays for the mortgage. We have also set up a monthly over payment for a total of 18 months. We will decide whether we want to continue to over pay once those months are up. I fully understand that the returns are potentially greater in the stock market than the interest we save on paying the mortgage. I just feel like the mortgage carries an emotional burden and I want to see it gone. Perhaps the lower the mortgage principle decreases, so will my internal strain. Or, maybe it will just spur me on and be a driver to get rid of it. Time will tell. If we hammer it, it will take 6 years’ish. I personally think it will end up taking a little longer. This goal is certainly, subject to change.

Goal 4:

To have a £1,000,000 net worth by age 52

It’s just a good-looking number, isn’t it? Hopefully, the home we own will appreciate over the coming years. Although, I am doubtful that it will be worth £250,000 by the time I’m 52. Therefore, The Wife and I will have to find another way to make it to the magic mill’. Side-hustles? Another rental property? Find a pot of gold? Sell my butt? We’ll figure this one out on the way.

That’s it for now.

Let me know what financial goals are, if you want.

Close Menu