10 financial milestones to celebrate with your loved ones (and financial advisor!)
Our lives are a journey towards achieving goals that matter to us with the people who matter to us. Celebrating is a way to mark and personalize your financial milestones achieved. You not only encourage yourself towards your next goal, but you also encourage those around you. So go ahead and celebrate your financial milestones unlocked! You are creating your own positive personal finances culture. Below, we have listed 10 financial milestones as a guide.
Milestone #1: Net Worth Positive
There is a line of thought that says that a homeless person on the street is better off than some folks in their nice shirts and fancy cars. Why? Because the homeless person at zero net worth still has more net worth than those who are in debt, or worse – broke!
The first worthy goal to celebrate is when your net worth is positive and you have emergency savings set aside. You may still be carrying some debts (they tend to stick around unless you work on clearing them) but at least your total assets and cash are more than your debts.
The first step is often the hardest. Thus, good work reaching the first milestone!
Now go celebrate (But don’t overdo it until you end up going net worth negative…)
“I don’t focus on what I’m up against. I focus on my goals and I try to ignore the rest.” ~Venus Williams
Milestone #2: Net Worth Hundred
So, your emergency savings are in place and you’re still working on tackling your debt. Your next goal ought to be towards reaching a nice round figure of RM100,000 in net worth. This can be relatively easy to achieve by ensuring that you have a budget, pay yourself first, and steadily save up. Key strategies would be looking at increasing income, keeping expenses low (live a student lifestyle if you can), and starting with some simple low-risk investments. Don’t neglect to keep learning and growing in your financial education as this will prepare you for the goals ahead!
Milestone #3: Me, Property Landlord
Malaysians have a love for property and buying your first property (whether for own stay or investing) is a worthy financial achievement unlocked. Hopefully you have done ample research before buying a good property that meets your needs in a good location at a good price. Where better to hold your celebration than in your new swanky place with your friends, family, and loved ones.
Milestone #4: Net Worth Five Hundred
Now the numbers are starting to become larger and more daunting to achieve. And you also have your property loan(s) and monthly repayments due. RM500k excluding your primary residence is a good milestone to celebrate once achieved. At RM500k net worth, you are above the average net worth of a Malaysian.
Milestone #5: I, Investor
Investing is necessary towards accelerating and reaching your financial goals while growing faster than inflation. You will be building up your investment portfolio especially towards your retirement goals. A milestone as an investor will be reaching RM500k in investment portfolio size (excluding your primary residence).
Milestone #6: Debt Freedom
The next milestone to work towards is debt freedom where you are free from all debt, except possibly for investment loans which are generating positive cash flow. Debt freedom also helps you accelerate towards the remaining financial milestones to achieve.
Milestone #7: Net Worth RM1m
noun, a person whose assets are worth one million dollars or more.
Being a millionaire today no longer means that you’re set for life unlike in times long ago. It still is an excellent worthy goal which you’ve achieved. Look at all the zeros in 1,000,000 and celebrate this milestone. It takes action and financial discipline to achieve 1 million in net worth excluding your primary residence. Find the best restaurant in town to have dinner with or take a dream holiday together. You deserve this! (but make sure you’re still a millionaire when you get back).
Milestone #8: Investment Portfolio RM1m
An investment portfolio of 1 million will make sure that for most folks your living expenses are taken care of (unless you live a lavish lifestyle). You are on track towards financial independence and need to wisely manage and grow your investment portfolio.
Milestone #9: Financial Independence
Congratulations on achieving Financial Independence! Financial independence is when your passive income covers 100% (and more) of your expenses. Your retirement goals are met and you have gained freedom of time, choice, and more. Do celebrate in style (and don’t forget your financial advisor and others who helped you on the way ;)). Do continue heading on towards the last milestone of financial abundance.
Milestone #10: Financial Abundance
You have achieved what a very small % of people will ever achieve. Your passive income generated ensures that you will not have to worry financially. Money is just a number to help you keep score. Check everything on your bucket list and enjoy what you’ve achieved. Then focus on making a difference in the world around you. Seeing how you touch, change and better many lives is the best celebration in itself.
“The roots of true achievement lie in the will to become the best that you can become.” ~Harold Taylor
You can now see where you are and keep moving forward! It’s ok if you missed celebrating a few financial milestones in the past. Focus on your next financial goal and keep moving forward! Everyone can achieve financial independence with the right plan, discipline, and advice.