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L2F 030 Milestones on the Road to FI Milestones Bring the Future into the Present

PODCAST

Show Notes

  • 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!

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