It is important to have goals. Without goals, where are we going? Our DividendMonkey Goals will allow us to have enough passive income from dividend stocks to give us financial freedom.
Here is our main goals to achieve the bare minimum needed for financial independence.
- Get $480,000 in Dividend Stocks: This is the amount of investments I predict that I will need at 5% to earn the passive income I need to become financially Independent.
- Receive $24,000 a year in passive income: This will provide me with $2,000 a month in cash to live off of. We do want more than this. However, this is an amount that I would need to pay all of my basic expenses. I can still afford to eat, pay the bills, and keep my house, without working.
- Become debt free: If I have a bunch of loans to pay, then the amount of passive income I need will go way up to also cover debt servicing.
- Own our house: We could have included this in paying off debts. This one is special because this is the hardest loan to pay off. It will probably be the last debt we pay off.
- Building a successful website: I enjoy writing and documenting my journey to becoming financially independent. It would also be great if it can become a source of passive income to help me in you journey.
These secondary goals will help make sure that after we achieve financial independence, we do not fall off the bandwagon.
- $24,000 emergency fund: It would really stink to have achieve financial independence and have some kind of financial emergencies that forces us to sell some of our assets.
- $3,000 in our checking account: Dividend stocks do not pay a steady paycheck. We will have good months and bad months. Dividend stocks can change the day they pay. This will allow us to smooth out the dividend payments without worry.
- $20,000 fresh cash to invest: We would hate for a stock market crash to happen right after we achieve financial independence. If we get to a point with a fresh 20% market correction, we want to have the finances to invest more money to solidify our passive income.
Our Stretch goal is simple. We would want $1,000,000 in invested assets with $50,000 of passive income. With this amount of money, and the other above goals achieved, we will have not only have enough to live, but also to enjoy more in life. Starting a business, travel, eat at different fancy restaurants, and everything else we want to do. Now this will not afford $10,000 a night hotel rooms, but we can still have a lot of fun.
Every Year, we need to make some goals to help us keep making progress. These goals cannot be achieved in 1 year, and can take longer. You can view our Yearly Goals Here.