13 February, 2023 seen 3,046For many years, I have been envisioning how to optimize my personal finances. Despite my aspirations, I have never…
I'm 31 now, I have a goal to save one million dollars by the time I will be 60. That's 29 years. That's $34,482.75 I should save each year, next 29 years in the row. That's a lot.
I currently make less than $20,000 per year, by US standard I'm the one who falls into the category - working poor. However, unlike my colleges in US, I live overseas (see living in Georgia) where standard of living in much much lower if compared to US , and in fact with funds I have here in Georgia I can afford pretty decent life style - travel a lot, spend evenings in fancy Tbilisi restaurants and even build a rural country house in other country.
I have some hopes for the bright future and I believe I could make about $45,000 per year in next 5 years (still sounds unrealistic today, let's say hard but doable).
I love challenges - more than three years ago this blog born as a challenge - can you blog 365 days in a row. It has been more than three years now and I still continue writing an article per day.
I always have loved photography, for years I was hanging around with my simple power and shoot camera and shot a lot, but it was just about two years ago I decided to take my photographer skills to the next level, soon I started my first 365 days photo project, and my photography started to shine.
Now, its time to take a control about my finances. It's not that I'm a complete beginner in finances, a time ago I actually started my first adventures in savings. Back then I looked on compound interest rates in Georgian Lari, interest rates were at about 9% annually, shortly inflation started and I lost about 17% of my money in converted in USD. I stopped looking on savings in other currencies than USD or EUR.
So what's the plan for 2045
In 2045 I will turn 60 years old. Seems in far future, but in fact it's not. The last ten years disappeared as a flickr. For almost 6 years I have been living in Georgia, and it still feels it was just yesterday I first put step on Georgian land. Time flies.
My initial plan for the first two or three years of my bigger goal of saving a million dollars is to put aside money I have earn with the help of this blog.
I'm planing to save the same percent as how much old I am. Today I'm 31 year old, for this year I plan to put aside 31% of my total income.
In a matter of fact I still have no clue where this year end will end for me both financially and geographically, I believe for this year to end with something $20,000 or close. That would ask to put aside about $6,500 in 2017. Still nothing close to $34,482.75 I should put into savings account each year if I wish to retire at 60 with million dollars in my bank account.
What I'm looking for is not just put money in the sock, but rather reinvest it in stocks, mutual funds e.t.c.
Right now - my goal for 2017 is to work with peer to peer lending and try to figure out could I get back about 12% annually.
I mentioned I will put income from blog into savings, yes as a matter of fact blog helps me a lot financially and I'm making some dollars on it for the last three years (I made about $3,334 in 2014 and $9,819 in 2015 and will end at about $15,000 in 2016).
In 2014 I was 29 years old, idea is simple this year I will deposit 29% from income I made in 2014, 30% from income I made in 2015, and latter on this year I will deposit 31% from income I made in 2016.
I'm looking to deposit first batch of money in January, about $966,00, second batch in March/April (about $2,945) and third batch (about $4,650) throughout the year. In total it would make about $8,561 deposited in, most probably, peer to peer lending in the first year from my 29 year adventures on saving a million dollar. That's a load of money actually.
Now, I believe that I wont make probably any profit at first year, thus it's tempting for me to write down how much possibly I could make if that 12% annually might work out for me. $8,561+12% = $9,588.32, that's more than $1,000. Amazing.
As a blogger I'm making about $600 from Google AdSense annually. If peer to peer lending will turn out to be a successfully experience, it might be pretty successful way to make money earn more money,
The Bottom Line
Now, this sounds like an unrealistic goal, probably even a dream, some might say. But here is what I believe - it only takes a financial discipline and smart decisions. Anything is possible. I will keep updated (for the next 29 years)