Lately, I felt that I have sort of neglected the importance of building my passive portfolio.
I have gotten too focused on achieving my one million net worth (after all that is the theme for my blog) that I have forgotten that my first step would be to fast track.
For those unfamiliar with the term, fast track is the term Robert Kiyosaki uses when the passive income is greater than the expenses.
Seeing that my passive income is virtually $0 now with the exception of a cash back credit, it seems that I have much to work on.
Fast track should be the first step
From what I have gathered so far, it seems that I have two goals financially. The first one being the obvious which is to achieve the one million. The second more subtle goal would be to achieve financial freedom.
After thinking about this, I have come to realize that I have been approaching this all wrong. Instead of trying to achieve financial freedom first, I was trying to save my way to one million.
Let’s face it, the one million is definitely a big milestone and it would require lots of effort, time and energy to achieve it. I believe that should I not be tied down from my day job, I will have more free time to indulge myself into personal finance.
To me, financial freedom is when I no longer have worry about my finances anymore and would be to free to do whatever I want to without being tied down to a j-o-b.
This is why I will now focus on getting to fast track and building my passive portfolio to free up my time for bigger things.
A realistic fast track goal
I still live with my parents and my expenses amounts to about $500 monthly. According to the definition of fast track, I will be on fast track when my monthly passive income is greater than $500.
However, my expectations for myself is much greater than this. Plus, I will eventually have to move out and I can’t smooch off my parents forever.
I believe that setting a realistic goal for my passive income amount is crucial. I have set one for myself that is realistic to the next 5 years and would allow me to live quite comfortably until I increase the amount later on.
My passive income goal is $4000 per month.
I have devised an end game plan that will guide me to achieving this $4000 by the end of 2020. I spent the entire weekend working on this and I will go into greater details in my next post.
In the mean time, the stock market will open in 9 hours. Quite excited for that. Happy trading week everyone!
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