I’ve been writing this blog for 5 years …
… and, I made $7m in 7 years.
So, if you’re an early reader, that means that you should have added around $1m to your net worth since you started reading this blog.
If you haven’t, I’m guessing that it’s for this reason:
The things that I discuss in this blog aren’t for reading or intellectualizing [AJC: is that even a word?] …
… they are for doing.
If you don’t get out of your comfort zone and actually change the way that you go about things – and, I’m speaking financially, here, but this is equally valid for any aspect of your life that you wish to improve – then how can you expect your results to change?
As Albert Einstein said:
If what you’ve been doing hasn’t brought about the life-changing financial situation that you’ve been hoping for, then think about what you should be doing …
… and, just starting doing it.
SO true… I have been a long time reader and my networth did go up about a million from when I started reading this blow AND…. I still have this problem. I KNOW i need to get out of my comfort zone and I DONT DO IT I know I need to CHANGE bad habits ( like procrastination) but I still dont do it, I know I need to be MORE efficient by focusing only on those things that REALLY matter but I still don’t do it. I’m reminded by the Apostle Paul when he says in the Bible I know the things I ought to do and I don’t…. The good news.. KNOWING and recognition are the start to good things. The next step is a plan and ACTION. The other thought to remember is that an airplane is “off” EXACT target most of its flight but it still gets there to its end goal.. No excuses its time to DO IT and STICK TO IT and FOCUS ON IT.. Ill let you know if that works next year because if I can pull it off I think I can DOUBLE the networth increase from this year!!
@ Jimbomillions – if you managed to increase your Net Worth by a million in just 5 years, you and doing far better than 99% of the First World population. So, we’ll done.
Not a million but close… I placed my name in the hat for the “lucky 7” (where are they now?)
Looking back five years went by so fast and yet there is so much more to do.
Wow AJC- reading your blog really paid off, as my net worth jumped by 2 Million in the last 5 years… now just slightly above $3M… so do I get a chance to drive your car 🙂
@ Mike – Only if u keep your CGR up, so that you add another $4m in the next 2 years 😉
What’s your Number and Date and what are you going to do to make that happen?
AJC- that is a pretty tall order and probably NOT going to happen. We are re-planning the number and date since we have our first kid on the way in a month or so… so I’ll probably work another 10 years. I am slowly moving into dividend paying investments, if I can get a few hundred K of dividend income in 10 years or so that would be nice.
@ Mike – 10 years is a great timeframe (my daughter was 1 y.o. and my son 3, when I came up with my 7 year plan).
The only reason to focus on dividends now is to have an income stream to reinvest.
In other words, focus on Total Return: you can restructure your portfolio towards dividends in 10 years 😉
AJC- thanks. Total return is a great goal, I was looking at a growth in dividends that outpace inflation. Example is that $2M in dividend paying stocks would bring in about $60K USD per year of dividend income (which will be reinvested) but the same $2M portfolio 10 years later should be bringing in $200k per year or more in dividends… and should also rise above the rate of inflation, right?
Is this the right way to think about things?
@ Mike – I can’t really give personal financial advice, but can say:
– don’t forget inflation: your $200k per year will be (a still healthy) $150K or so in 10 years, but if your plan slips out to 20 years, it will only be worth $100k p.a.
– I don’t understand the obsession with ‘dividend stocks’: ANY stock can be a dividend stock if you sell a little each year, or as required.
@AJC: Of course you are correct in the sense that total return would not care if it was through stock appreciation or dividends or any combination thereof. Indeed running a business may be consuming all of cash flow but if it can go into growing the business and compounding net worth, then it is totally worth it.
My obsession has come from receiving a regular income source and I was first looking at a bond portfolio but realized dividend stocks and rents are more interesting because the regular payment can increase and the underlying asset remains somewhat independent of inflation… your point is this could easily be synthetically created by selling stocks / principal. I don’t disagree with this point.