I thought it would be helpful and fun to include a visual to chart my progress towards early financial independence. This illustration highlights the first five years of my professional career. It includes details of the different income streams and debt that I have taken on. The items that are crossed off are the ones that are no longer affecting me anymore. As previously stated, the goal remains to create a passive and semi-passive income stream that will exceed my monthly expenses. For expenses, I put in $1500/month ($18,000/year) to allow for some cushion. I typically spend less than $1400/month.
As of present day, I have three sources of passive income: Roth IRA, 401k, and taxable dividend account. I added a grey box for real estate investing, which is something I am currently looking into. I would love to see the day when the combined efforts of the various accounts brings in more than $1500/month. I used the dividends from last year to generate the numbers for the Roth IRA and the 401k. The numbers for the taxable dividend account are listed as TBD since this is year one. Same for real estate, since it hasn’t yet started.
When I look at the numbers, I get both a sense of excitement and anguish. The excitement comes from the fact that I am slowly formulating a plan to achieve my goal. I’m starting to see some seeds sprouting, so it feels good 😉 On the other hand, there is still a long, long road to traverse, and a lot of waiting that needs to be done. So I must remain patient even though deep down I want my fruit now! Slow and steady wins the race… indeed.