- Our topic is Using Milestones to Achieve FI
- Milestones are important
- They show progress, growth and profit
- They help us overcome our bias towards spending today
- The relationship of goals, milestones and steps to one another
- Milestones break down a goal into significant steps that mark progress towards achieving the goal.
- Steps are the tasks that help you complete a milestone
- Use SMART technique to express goals and milestones – Specific, Measurable, Attainable, Realistic and Timely
- For example, assuming your goal is to achieve FI, you can state it like this: I want to save $1.2 m by 2030 to achieve FI.
- Here’s an example of a supporting SMART milestone: I want to achieve zero net worth by December 31, 2022 (assuming your current net worth is negative).
Examples of milestones that may apply depending on your situation.
- Reduce expenses by X dollars or X %
- Debt related such as Pay off student loans and/or credit cards
- Attain zero net worth
- Create a 6 month emergency fund
- Increase savings rate to x%
- Have $100k net invested
- Reach 50% of FI goal
- Achieve Coast FI
- Listen to Episode L2F 026 where LateStarterFIRE talks about what achieving CoastFI means to her!
- Reach FI goal number (watch my video on Financial Independence)
- Keep in mind that plans need to be updated on a regular basis because things change. Therefore, goals may need restating as will milestones and steps
- Writing down goals is proven to increase the chances of achieving them!