It’s been a while since I’ve been working towards a really big financial goal. To be clear, I’m no stranger to big money goals. Last year I bought my ‘new’ car in cash. And in 2015 I paid off nearly $100K in student loan debt and then saved a 6-month emergency fund. I’ve been in chill mode since making the decision to pursue slow financial independence. But now I feel it’s time to challenge myself with another big money goal. And this one might just be my biggest challenge yet.
My next big money goal is to save $100,000 in cash. This goal is in perfect alignment with my financial independence plan.
Truth be told, I feel a bit cash-strapped. Over the years I’ve done fairly well at aggressively investing for retirement. But beyond a typical emergency fund, I’ve never prioritized creating a strong cash buffer.
It’s ultra-important to invest for long-term growth in order to outpace inflation. But I do think there is value in having cash on hand, just in case of recession come some major emergency comes where you’re out of work for an extended period of time. Or just in case this lengthy bull run ends, I won’t be forced to sell off assets at a loss to keep afloat financially.
Documenting Project $100K
I’m referring to this new savings goal as Project $100K. And I want to just kind of document my progress towards saving in the same way that I previously documented my debt payoff. With Project 100 K, my aim is to save $100,000 in cash in 10 years or less.
My current monthly savings goal is $833 minimum but my monthly stretch goal is $1,000. I think these numbers are reasonable because they will leave me enough wiggle room to still save money in other areas, to put money into my Roth IRA, and to continue to put money into a taxable brokerage account.
I hope that you are working towards some sort of large financial goal as well.
“Most people overestimate what they can do in one year and underestimate what they can do in ten years.”Bill Gates
Please keep this quote in mind as you set goals for 2020. Don’t overwhelm yourself this year only to lose sight of your ultimate plan. Start with where you want to be in 2030 and work your way backward.
Me, 10 Years From Now
For me, 10 years from now looks like a $1M+ net worth, downsized/paid off home, multiple streams of passive income, and work 100% optional.
What kind of financial life would you like to be living in 10 years?
And most importantly, are your spending, saving, and investing habits of today aligned with your ideal future?
5 Comments on My Next Big Money Goal: Introducing Project $100K
I think is important to have a big financial goal to achieve on long term and have micro gioals on short and mid-terms, I’m sure you’ll achieve yours!!!
Project 100k, I like this goal! I definitely agree there is value in having cash on hand. I have settled on $51,436 (to the dollar), which is exactly how much we spent in 2019. That said, our 2020 spending is coming in much less : )
As for ten years from now, my wife would love to open her own business. Time will tell!
If I retrench spending down to survival level I can save 40k in a year to buy a car cash and renovate house. The thing I need is the will to maintain that level of frugality for a year.
I think is important to have a big financial goal to achieve on long term and have micro gioals on short and mid-terms, I’m sure you’ll achieve yours!!!
Absolutely! Thank you so much.
Project 100k, I like this goal! I definitely agree there is value in having cash on hand. I have settled on $51,436 (to the dollar), which is exactly how much we spent in 2019. That said, our 2020 spending is coming in much less : )
As for ten years from now, my wife would love to open her own business. Time will tell!
Thank you so much! Starting a business is a great 10-year goal to have.
If I retrench spending down to survival level I can save 40k in a year to buy a car cash and renovate house. The thing I need is the will to maintain that level of frugality for a year.