Sunday, December 03, 2006

Some more perspective

Just to make it clear, I am only aiming for one billion New Zealand dollars net worth, just in case you thought I was a raving lunatic.

So just how far am I away from this lofty goal which would place me 2nd on the NZ rich list:

Cash 68.03% NZD 38,460.67
Investment 31.97% NZD 18,077.27
Total
NZD 56,537.94

Quite a way to go... but hey I have a plan.

Step 1 - Quit my job.
Step 2 - Profit.

OK, I may have skipped a few steps there, but anyway...

The first thing I need to do, before giving a two finger salute to my boss, is to start generating enough passive income to cover my living expenses and go toward future investment. I have determined this amount of money to be 400,000 NZD a year. Currently I am generating about 3300 NZD a year passively, so I have a way to go yet.

I also want this income to be rock solid stable, so the majority of it will be in income providing type investments. I realise this might make my ultimate goal a bit more tricky, but hey I've got the rest of my life to get there!

So the magic interim figure I am aiming for is 10,000,000 NZD using the tried and true formula of 25 x planned retirement income.

More on how I'm going to get there later.

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1 comment:

Martin R said...

Your philosophy sounds similar to Robert Kiyosaki's. He's a bit old news but if you haven't read any of his books you'll find you're reading your own mind I think.

That said, there are a lot of holes in his theories and he oversimplifies wealth generation. I wouldn't pay for his books anymore, but worth borrowing from a friend or the library.

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