Goals and Aspirations

It has been a while now since I last tried to formulate my goals and having done some thinking I feel all the more certain that I can restate my goals here.

Short Term Goals:

  1. Monthly save 50% Of my current income and loans in low cost index funds and dividend stock.
  2. Beat the interest plus income tax with the returns on dividend stocks yearly.
  3. Pay of the forced mortgage and interest using dividend from stocks.
  4. Keep a 3-6 month buffer incase of housing crisis or a forced move due to critical changes in way of life.
  5. Minimize extravagant spending. ( See Post : Budget *hyperlink will follow as it is a work in progress)
  6. Rebalanced portfolio before the end of November.

Long Term Goals:

  1. Evaluate housing conditions; at the moment. high rents and low interest on loans.
  2. Diversify passive income sources to include but not limited to any of the following: affiliation on blogs, websites or other multimedia sources, influensors sponsorship, book or other royalties possibilities, renting e.g. rooms in bigger apartments to friends or smaller apartments in whole to strangers to offset mortgages and interest on loans.
  3. Start my own business in tech industry as a part-time expert consultant.
  4. Start my own business in tech industry as innovative problems solutions with a lease possibility for easily scalable production: More idea generation needed. [WORK IN PROGRESS]

These are various ideas currently being worked upon : tactical and strategic plans shall follow along side a budget.

Best wishes,




Money as a tool

My personal opinion on cold hard cash is that it is a tool.

It is a tool to achieve experiences, pleasure and comfort. But with that in mind its also a tool to achieve, security, peace of mind and a greater quality of life.

These are very different aspects of the power of money, and some perchance enjoy pursuing some over the other.

Extreme hobbyist might spend all of their disposable income on the pleasure of their hobby. Others on new experiences, or repetition of old ones. And others on comforts such as clothes, housing and other material goods.

Some use it to acquire security, with buffers and the capability to care for their loved ones in cases of emergencies and hard times.
Others use it to acquire a peace of mind, allowing them to focus on the small things in life while enjoying a lower work rate.
And others use it as a tool to acquire a greater quality of life, with education, affordable healthcare and being able to follow ones own pursuit in life with the monetary means to fund such expenses.

It’s vital for a person to locate where they are in life, what their aspirations are and to save accordingly. There are few out there whom enjoy slaving away at a job because they NEED the money to pay rent and they can’t afford to not work because they might loose their housing, though this could be a reality for many.

Therefore I encourage you who might have the means now, to set aside a bit of your current earnings to be able to provide for the future you want to live when you want to live it.

One of the lessons I have learnt is that to pay yourself first, with savings, before spending on expenditures. 1%, 2%, 10%, or whatever you feel capable of setting aside without diminishing your quality of life is what I strongly encourage.
Will that 2$ coffee at lunch, every really improve your satisfaction compared to having that 2$ coffee when you really feel like it?

We are creature of habit, but that means that habits form us and sometimes we stop enjoying the habits we acquire.

Food for thought today.

Best wishes,

// A.W

Story so far…

Currently I am sitting on a approximately 40% Cash and 60% equity balance. This is because currently I only have a partt-ime job with irregular hours so I feel the need for a greater safety net incase of release from employment, sickness or other extreme events. This sum should be able to sustain me for an approximated year and a half with no additional income.

Being a months since I started this blog I realized I think it would be nice for me to keep a journal of how my portfolio changes, the resource allocations and the asset allocations within these resources. I’ll start by making a list here in this post but I’m contemplating filing these away under a new tab. Potentially called one of the following “Portfolio Allocations / Portfolio History / Asses Allocations.”

Currently (2017-03-02):

CASH: (% is given of the total portfolio)

Low Interest rate account (0.7%) :  36.6%

Non Interest rate account (0.0%) :  5.6%


Stocks :  42.7%

Bonds:   15.1%


xxxx:xx %

Total Debt in % of net worth  78.8%

2016-06-26:  (Approximately start of my investment phase)

CASH: (% is given of the total portfolio)

Low interest rate account (0.7%)  : 92.2%

Non-interest account (0.00%)     : 0.94%


Stocks :  4.1%

Bonds :  2.8%


xxxxx: xx %


Total debt in % of net worth : 89.4%

I wish you all the best until next time,

// A.W

Dividend Portfolio

For my asset allocation I am looking to diversify in several ways, one of these being a cash return investment in the form of dividends yeild portfolio.

My idea behind this portfolio is that I am looking for about 8-10 companies that have an established market share, good prospective growth and a potential for a long term sustainability. These stocks should have a history of seldom lowering thier dividend and often having a continued increase in dividends given out. These dividends will hopefully be the cashflow that allows me to pay my rent, and generall upkeep throughout my retirement.

If we expect an on average dividend yield of 4% of the assets and a monthly upkeep of $2500 in nomial terms this will mean that I’ll approximately need an asset size of  $750,000.

If we are looking at timespan of 25 years not accounting for inflation I will have to save approximately $30,000 dollars yearly, or $2500 monthly with a 0 percent rate of return.

But if we now persume that I will have a similar rate of return on my investmet this will accumilate up to $1,503,403  more than double of the amount that I need with an averaged 5% annual growth.

If we reduce the monthly savings to just $1500 per month, include a yearly standard tax on assets after the 25 year period the total capital should be $843,519 with is just above my goal.
Taking into account irregularities and pitfalls this feels like a decently goal to aim for for my $750,000.

More ideas and thoughts will follow.
best regards,

// A.W

Starting out

and how to get to where a am now, part one.

It began with a mental decision, “I don’t want to live in eternal debt for the rest of my life.” This idea came from watching most of my friends frivouslly spend their student loans on alcohol, trips, clothes, eating out and other non-essentiall trivialities. At the end of the month before the next payment was in they where always going on about how broke and poor they where, but once again when the next loan arrived out and away it too went. I was in the same situation with these groups of friends and was spending my money the same way. One day after much contemplating I took a stand. I was going to start savnig up enough money so I could be free for a couple of months and not need to strees for the next loan to arrive.

I started using my normal bank’s savings account. It had an interest of 0.7% when I first started using it. This quickly dropped down to 0% within just a few months. Eventually i started looking for another bank account with a greater interest rate. i found one with 2.5% that was governmentally insured incase the bank lost all its money I would recieve a compensation for up to a certain amount (way above what I was investing). There it sat for several years untill due 1.5 years ago when I got a notification saying that the interest for this bank account was also at 0.5% lower then my initial bank account.

I took a look at the amount of money i had saved up, and compared it to the interest rate on my school loan and realized my percentage rate of return was lower than the interest on my loan! Here is where I took the next step to learning more about private economy, investing ideas, and passive incomes. I will continue to discuss these in future posts.

best regards,


IPO gambling

For the past year there have been a series of initial public offerings (IPOS) in my local market and several friends of mine have jumped on the bandwagon in buying a fair deal of them and then selling them of at the initial time of release.
Currently they have made a great income on these transactions (about 15% plus after taxes) which is by my own investing means a great rate of return, but also these investments are liquidfied within a certain time period. Allowing for further greater investments into IPO’s like the interest on intrest effect that is the dirving force behind financial freedom.

I deem that these actions are considered gambles as you never know if you’ll strike gold or not, but if one plans it out: say I’ll use $100,000 in 100 IPOs for a 1000 dollars in each IPO. This would reduce the risk of an all out failure and still have a potential for great yields.

I’ll hopefully return to this subject after I’ve stabalized my current asset allocations to my desired positions. That is 20% cash, 30% estate, and 50% stock and bonds.

Best wishes,


A goal without a plan…

Is nothing more than a wish. –

My goal as previously stated is to be financially sound at the time of my retirement.
My plan to get there is rather simple to begin with. Its rough draft is as follows:

Acquire passive income in the form of interest rates, dividends, and rent.

There I aim for about 10-20% of all my capital to be invested as cash for interest rates, hopefully this will submit about 7% of all income, this is assuming a 2% ROE (return on equity). This cash will be kept for emergencies and potential drops so it will be easier to capture market drops when re-balancing my portfolio. I hope for about 20-30% to be invested in real estate, these can have mortgages which will not be included in my cash count but the interest rates will count against the income acquired from such properties. This will hopefully contribute about 28% of all my income, this is assuming a 5% ROE. And the rest will but put in the open market in funds and ETFs and will yield about 65% of income, this is assuming a7% ROE, which is in my opinion quiet high.

As you can see 7%+28%+65% = 100% so all my passive income will come from these three aspects.
This is just my plan from the beginning. It is bound to be open to changes and re-evaluations. More numbers shall be arriving shortly.