Discussion – My goals for 2020
Setting goals is a good way to start the new year. Here are the outline of what I plan for my life in 2020.
Tl; dr;
- Straighten my finance.
- Purchase at least 1 more property.
- Grow emergency fund to 3 months living expense.
- Write at least 52 blog posts.
- “Challenge” gather a good deal to present to investors.
First thing’s first….
Reviewing my current personal financial situation, I think it is in a mess currently, with loans are everywhere and there are no system around them. So for 2020, I want to restructure my finance to have a better interest rate on my loans, better visuals on how the investments are going.
At this moment, my loans are as follow.
| Loan | Interest | Notes |
| Home loan (now investment) | 3.85% | fixed 2 years, ending 04/12/2020 |
| Investment loan | 4.16% | a bit high at the moment, can be lowered to a considerable amount |
I’m aiming to have them lowered, considering there may be further rate cut from the RBA going into mid 2020. I would consider fixing the interest if the RBA lowered the cash rate to 0.25.
The good thing from low interest rate is that my cashflow from the properties will be much better and I can save them up to invest in more properties.
Property purchase
As some of you may know, I want to be a professional investor, concentrated to properties. So in 2020, I will be active to find a suitable property for me to purchase, and looking to renovate it to make some instant equity, as well as structuring it to at least neutral geared after tax.
I have been reading up a lot about the topic. And it is challenging to not fall into “paralysis by analysis” syndrome. Basically it means that researching too much leads you to the state where you see risks everywhere and do not start taking action.
By leveraging the young age that I have, mistakes can be fixed. I will prepare myself to purchase at least another property, fixing it up, putting it up for rent, and reconsider my financial position to see if I can redo it all over again. If I find problems in any steps, there will always be people who are keen to help.
Emergency fund
This is what I learned from various books like The Barefoot Investor, The Total Money Makeover, etc. I have grown my emergency fund to be sufficient for about 1.5 months now. And the goal for 2020 will be growing it to at least 3 months of my monthly expense.
This way I have a good cushion to fall back on, should any unexpected events show up. I will just park it in a high saving account (I use ING, with their high saving account at 1.95% pa).
Blog posts
Of course I will continue writing blogs. It is entertaining and providing me a way to memorize what I learned, as well as sharing my knowledge and perspective to the world.
The goal for 2020 will be writing at least 52 blog posts, or 1 each week. This should be achievable, considering I only spend around 3 hours to create an article.
Upcoming blog posts will focus more on property investments, rather than just technology aspects that I have been posting. I feel like I have absorbed so much knowledge regarding property investment that I should go out and implement, then report my findings to you all.
“Challenge” present a good deal to investors
This is what I would like to try out in 2020. Where I can find an outstanding investment opportunity and gather all information needed. By presenting it to the investors, I hope to raise private funds to buy another property. This is a bonus challenge for myself, and I really hope that I can achieve it.
Summary
Well that is a lot of goals that I set for myself in 2020, and we have already finished the first week of 2020. I better be fast before the year ends.
By Tuan Nguyen
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