| Real Life Strategies for Building Wealth

Right! Have I mentioned before that goal setting and following is not really my strongest points? If I have failed to mention this one, now is confession time. Throughout my life I have mostly wanted and achieved; most of the time what I want and what I achieve are very different things. This is what not having clear goals leads to: how likely is it that one will get where they wish to be if they don’t know where they are going?

This is why, and as a part of a general drive for change and wealth, in May I published our financial goals. Did I publish them and promptly moved to the next thing, to the next idea? You bet I did. But today I am getting back to these goals and am going to report to you, my readers. A bit of accountability only focuses the mind; apart from me secretly hoping to generate some crafty and savvy ideas about how to achieve these goals.

I set myself to achieve the following within eighteen months:

  1. Generate £1,644 per month passive income. I still don’t have much passive income. It is true that I am on sabbatical for twelve months and it can be seen as a situation where all my income is passive. I would rather not: this was to be above and ahead of our current monthly income after tax. Work in progress.
  2. Transform non-income generating real estate into income generating assets. There has been some movement here: two real estate properties have been put on the market and we expect will be sold soon (one is as good as sold, really). This is not very much but some liquid wealth will be generated – have no idea what to do next. Apart from that I will discuss with an estate agent in Sofia (when I can walk and have a bit of independence) the possibility of renting out our apartment on very short term basis (two-three days at a time).
  3. Reduce our liabilities by £100,000. This is the scary one; or was. I put the number down and it sounded rather good. I never calculated that to achieve this will mean to reduce our liabilities by £5,556 per month; this is a lot! By some miracle, however, between May and today we have reduced our liabilities by £23,594 (a combination between John’s work, a small part of a useless pension fund and pay out by a naughty bank). This works out at £5,898 per month and spookily this puts us ahead of schedule. There is the small matter of continuing on this road but I believe that something will turn up

So far so good, long may it continue!