Well, this year is going to be much different than I planned! Originally, I thought this would be a continuation of a killer 2020 or 2021. To be honest, 2021 was an amazing year for our investments. We were able to invest over $100K, which was driven mostly from a house sale and moving to renting, maxing my 401K, maxing our IRAs, and getting a few checks from my old employer as payouts.
But for 2022 after pushing so hard in 2021, having a baby, selling our beautiful house, switching jobs, and moving across the state, we wanted to slow down a bit. And with that slow down, I am also consolidating my goals down to a few per section. Last year, I had like 6-10 per section and MAN DID I DO… well.. not great at some of them. Completely forgot about them. I’ll try to keep it to 3-4 or less per section, except for Retirement and maybe Short Term goals/Vocational.
Now, I don’t mean that I’m not excited about investing. I’m just tired of the push and the strain it has on my family as well as the journey that was supposed to be so great towards the destination. I want to learn to enjoy money, so that when I get to the point of having a lot of it, I actually care to use it. I actually care to live a full life instead of hoarding it and being miserable, let alone allowing my wife to be miserable. So I did some number crunching.
Here is where I break down a general idea of what I want, what number goals I plan to reach, and some of the actions that may make my number needed to invest much lower per year.
It starts with the term BaristaFI. Now typical BaristaFI refers to shifting from full-time work to part-time jobs like Starbucks or a retail job or something random and simple minded. I plan to do something a little different. I think something similar to what Reverse The Crush talks about in his article about his version of BaristaFI.
This is a shift from full-time work to part-time work but usually part-time work in an area where you have expertise and can still bring in a high income. Reverse The Crush uses it to focus on his blog, dividends and ultimately a happier life more attuned to his ideals. This is definitely what I’m considered since my job could surely be done part-time and it would afford our current lifestyle plus some comforts like healthcare and a 401K match, pension, etc.
As far as time, yes, I would work a little later into my career years, but I have these added benefits:
- Pension grows as the number of years I work grows
- Healthcare subsidized by company paying part
- Still have a 401K match
- active income allows me to max my Roth IRA
- 10-20 hours a week can be helpful to have some sort of schedule
- $10K of active income replaces the need for about $250,000-$300,000 of passive income. That’s a big deal!!! That’s $300K less to have to save!
- So something like $30K-$40K helps a ton.
That being said, let’s get into the Resolutions!
SECTIONS TO FOCUS ON
Here are the areas that I like to focus on every single year. For me, it is enough. For you, you may want to add or remove any number of areas. These work great for me and fulfill all aspects of my life.
- Physical: Our bodies and their health are important to keep us having fun in the short term and in the long term. I want to be healthy so I can play with my kids longer, travel more and experience more of life without self-created health conditions.
- Intellectual: Along with our bodies, our mental capacities are important to take care of. Learning is a huge part of growing.
- Spiritual/Emotional: I hate getting angry or being scared of what might happen in life. This helps to center me and help bring me back to a higher focus and think outside myself.
- Vocational/Work: These are items to work on for my career. They help me do better at my current job and try things that may move me towards a dream job someday.
- Short Term Financial: Things that I want to have saved for that are coming to fruition this year.
- Retirement: Long term financial goals and things I will do this year to help push for that retirement.
Let’s go through each of them and talk about some of the goals in them that you might pick up as well.
3000 per month of Crunches, Squats, and Push Ups by December: I’ve been slowly increasing how many of these I can do each month. Currently I’m going to end the year at 1200 in December 2021. I want to slowly increase it to be 100 per day of each workout type on December 2022. I think that is perfectly doable.
Planks: Somewhere I read to try and do 1 minute of planks every day. That’s actually really easy if you can remember to do it. So why not put it on there? This is a carry over from last year.
Have a rough Food Plan for the week: Sunday nights I want to sit down with my wife and write out a rough plan. It might work better Friday night so that we can shop on Saturday. Nonetheless, I want to get more intentional with food.
Cook from my cookbooks once a week: I am keeping this one simple as well. That’s the goal of this year! I got a cookbook called Snoop Dogg, From Crook to Cook and I totally want to try out his recipes. I also want to try out some recipes from other cookbooks. Buy the ingredients and try it.
Reading Books: I’m going to keep this as is from last year.
Reading is very healthy to a growth mindset. Not only have I heard that successful people read, I think it is important to hear many things in many different contexts. I am going to shoot for 12 books this year. Mainly because I only read non-fiction and they can be 400 pages of tedious work. Moreover, I am a slower reader and my goal is comprehension first so the only way I will get through 12 books will be a concerted effort of reading every day.
I am going to list a few books and I will add to this as the year goes on. It’s tough to know all 12 books before I start. Reading focuses change, non-fiction for all or maybe some fiction books. Here is what I have so far:
- Will Smith: autobiography (my current amazing book)
- One Up On Wall Street by Peter Lynch
- How To Do Nothing
- How to Stop Worrying and Start Living
- Atomic Habits
- Crucial Conversations
- Totally Fine and other lies I’ve told myself
- Five Steps to Financial Wellbeing
- Get Rich or Lie Trying
- The Psychology of Money
- Zero to One
- The Inner Game of Tennis
- Red Notice
- Billion Dollar Whale
- Bitcoin Millionaires
- One Fiction Book
Now this is just a stab at things that interested me. Please feel free to comment if you DO like some of these or have other recommendations. I am all ears and I plan to purchase ones I am really excited about. The rest, I am hoping will come throughout the year. I will also have to dedicate a bit of funds to this. Books are not cheap in stacks.
Blog Article Once A Week: Blogging is a great way to express your opinion to yourself as well as write down your thoughts. Currently my entire blog is basically just an accounting of things I am learning. It will be good to go back and have something to read about what I was going through 5 years ago or even last year. Once a week works for me since I probably won’t always have something to write about if I did it every day but it is enough to push me to log time and gets words and experiences down.
Travel Related Helpful Knowledge: Same as last year. Simple put, I just want to spend some time reading up on and understanding new places or old places better so we can travel more and feel more comfortable doing it more. Understanding cultures and location proximity and attractions of an area are key to not wasting time on vacations.
I can’t really think of many other intellectual goals. Many goals will be vocational that require my mind but really, that is enough to satisfy my mind.
Read Scriptures every night.
Morning and Nightly Prayers: This is tied in with my goal of Gratitude so I will make it short. Knowing there is someone looking out for me and remembering to try my best to communicate my gratitude and my shortcomings where I need help and a fresh view will change my attitude in how I view the world and then push me to act accordingly.
Gratitude: Basically with this, I just hope to take each day at a time and be thankful and act thankful for each good thing that happens. Maybe a 1GoodThing a day would help.
Understand Machine Learning / Python: This goal itself is not super finite or defined, but I think spending some time learning different uses for Python and how to create solid models will be helpful with future goals and promotions. This year, it gained me a promotion and that was killer for my finances!
Working on Pizza and Pizza Recipes: This is a simple fun thing to do with my foods goals.
Crypto Mining Space: Now, this one is more weird one for those of you who haven’t dove into the Crpyto space much. As a simple way to understand it, some Cryptocurrencies need help from computer processing power in order to verify transaction (kind of like how Visa verifies transactions) and as you participate with your computing power, you receive rewards/payment for your work. It’s called a Proof of Work consensus model. For myself, I have a few computer pieces that I plan to use towards this. I have been testing this for about a month now and it actually works really well.
Another reason I want to get into this space is that I think there are some very interesting companies forming in the crypto space and as a miner, I can get tokens of those companies for essentially free. Having more tokens is basically the same as using my computing power to produce myself more shares of a stock. Now it makes a bit more sense doesn’t it?
Currently, I have a single computer GPU that I mine on that makes around ~$2 a day. That is ~$60 a month and around ~$720 a year. Just to keep my computer running. I don’t do any work. But I’d like to build a bigger rig that hold up to 6 GPUs. More on this $$ in my Short Term Financial Goals.
SHORT TERM FINANCIAL
Crypto Mining Space: Aaand we’re back so I’ll finish up with this thought. My plan this year is to build a mining rig. With my technical knowledge, I have a knack and educational skills to put together a computer that can hold up to 6 GPUs which can make anywhere from $12 a day to $30 a day. I hope to sit around the $12-$18 mark. That would bring in around $450 a month and $5,400 a year. Now maybe that doesn’t sound killer, but I think it is a great addition to my original income.
And who knows. Maybe it is so profitable that I go beyond a single rig (6 GPUs) and build more. It is very fun.
I also plan to switch to fully mining $FLUX at some point when I feel comfortable. I think $FLUX has the great growth potential of the 3 things I could mine and it will be good to get into the space before everyone does.
Crypto Node Space: Alright, before I jump off the Crypto Work Space, I think Nodes are interesting. You basically hold a certain amount of tokens from a certain company and set up a bit of hardware to support the network and they will pay you to do so. Some I am interested in are FLUX and PRE. I plan to have my PRE node set up by the end of the year and FLUX will take some time, but I can mine FLUX.
PRE is for Presearch. Presearch is a fully private decentralized search engine. It allows one to search for things without all of your data being taken and sold by Google or another company for profit only to be bombarded by ads. It allows the people to own their own data and even allows PRE token holders to create ads with no charge like Google takes. You simple buy some token (which you get to keep) and then you do the same ad bidding but with tokens. (which you still keep) I expect a PRE node to cost about $700 of PRE tokens which I stake (I keep them) and it will make me somewhere around $0.50 cents a day worth of PRE. That comes out to about $180. That’s an ROI of around 26%. Plus, the PRE that I have AND gain by having the node can go up, which could be a great future play.
FLUX is a fully decentralized Cloud Computing solution. It is comparable to AWS or google server. AWS supports thousands of businesses that run on their cloud computing. When the central server bank goes down at AWS, all of those companies go down. With Flux being decentralized, when one server happens to go down, it doesn’t matter as much because there are many servers helping to stand up the service. Flux can do what AWS can not do. However, it is really expensive right now to buy enough tokens to run a Flux node. It currently takes 10,000 which is right now about $22,000. They make about $260 a month right now. So it’s not bad. You also keep your tokens. They may allow smaller nodes, but for now, I am just planning on mining FLUX and buying it as well to get there.
Baby Expenses: Pretty simple. Baby is gonna grow and I like to set aside a certain amount to fund baby needs. Food, formula, vegetables for eating solid foods, toys, bottles, etc. When we go buy something for the baby, we just pull it out of that account.
Save for a down payment on a car: Well I got a newer car this year but it keeps dying. Once the battery died once, the battery dies all the time now. Great. So I am going to look for something a little nicer. Think I’ll save up a bit and then get something to replace it.
Build Emergency fund up: Our normal emergency fund was $6,000. It is currently at $8,000. I think I like it here but may push it up to $10,000 as a nicer safety net. I am very curious about having some of it in Stablecoin since Stablecoin makes around 9% APY right now.
Max Out My Roth IRA: Last year we maxed both of our Roth IRAs and I maxed out my 401K. But we realized, if we do continue making some sort of active income like a part time job, that money is most likely locked up for a while and won’t help our immediate needs. So we are going to switch it up from a total goal to some smaller refined goals like this one.
Get The Match! 401K: Yep. I maxed my 401K last year and this year, I plan to just get the match. This puts my investment there at around $4000-$5000 as opposed to the $20,500 that would go to it in 2022 per the new investment information that just came out. This will leave some money for us spend our ourselves like I talked about, but also will leave some more money to put into dividends and other projects that we want to look into to make passive income. Maybe I’ll pay for my wife’s website to go back up. Not 100% sure.
Passive Income: I am going to start charting all of my monthly investments with the hope to see how much passive income we are generating. This will help determine when we can slow things down.
Dividends: Wow. Well, looking back on last year’s goal to go form $540 to $800 was silly. Once we sold out house, we had a lot of tax-free money to put into our Taxable account. However, that big amount won’t see all of its yearly dividends until next year. So this year, we hit somewhere around the $1,090 mark. With all of that Taxable money added in, our Forward Annual Income expected is about $3,000. That comes from an account around the $60,000 mark. I think it’d be really cool to hit $100,000 in that account but that doesn’t seem feasible this year. So I am going to try and say I’d like to add another $1,000 to our Forward Income to make $4,000 in dividend income. That should take about $25,000 invested altogether, which is helped by my current dividends coming this year. This seems doable compared to $40,000 last year.
Here are my holding and plans:
- Buy $TGT each paycheck: ~$100
- Buy $VYM each paycheck: ~$100
- Buy $JPM each paycheck: ~$100
- Buy $STOR each paycheck: ~$100
- Buy $MSFT each paycheck: ~$50
- Buy $COST each paycheck: ~$50
This is about $600 a paycheck, but I plan that some of this is subsidized by current investments dividends. This should add quite a bit of dividend income this year.
Crypto Interest: This one is tricky to put a goal to. I think the crypto space is here to stay, but it is going through a lot of changes now that the government is taking note of the accomplishments in this space. The article in that link is really cool. I didn’t think Congress was that excited or involved. That being said, Crypto can generate much more income than a normal investment. I currently have somewhere around $1,000 to $2,000 in my Crypto Interest Accounts with BlockFI. I am in the process of using about $700-$1,000 to buy some hardware I mentioned previously for Presearch.
However, with $1,000 in there, I will actually generate about $90 or about 9% APY. That’s crazy great! So I want to see where that goes and be cautious but optimistic.
Here are my holding and plans:
- Buy $USDC on BlockFI each paycheck: ~$100
- Buy $FLUX on CoinMetro each paycheck: ~$100 (They have a $5 fee for US bank account transfers… so I’ll figure this out. Maybe I’ll buy once a month? or just eat the cost.
- Buy a mix of $ETH and $BTC each paycheck: ~$50 each.
These should add up to quite the amount this year. Close to $7,000 in total generating maybe $500 by the end of the year. That should help hit that passive income goal along with my other projects.
Vacations This Year: We are planning on 2-3 vacations this year. We are looking at possibly California, going to Hawaii, and maybe a cruise if we get a right opportunity. These will come with time. Once my wife finishes her schooling, we have a deal that we will go to Costa Rica in 2023. Exciting!!!
Well there you have it! That’s all the goals I set. Who knows if we will hit them but I hope they give you some ideas of what you can do for your year! Let’s get it this year! Be happier and move towards better lives whether we hit the goals or not. Thanks for reading!