Do you have your financial goals ready for the new year yet? I usually don’t set very specific goals, but in order to track progress and have some motivation and accountability, here is a list of what I plan to achieve next year.
Grow my net worth by 30%
In 2012, my net worth grew by 20%, which is less than the year before, so this year I am feeling ambitious. I don’t feel like tracking my net worth here because it could mean trouble in Guatemala, but if you have been following me for a while, you should be able to make a rough guess. Part of the growth will be paying off at least $20K in debt, as part of the other goals below, and minimum payments on my 2.29% UK mortgage.
5 times more blog income
Blog income was good considering this blog was created in 2012 and many don’t make money at all during the first year. I want to make at least five times more in 2013.
Sell my cattle at the end of March at the earliest
My cattle investment is one of the most lucrative ones I have right now, so I need to hold on to it even though I will need a lot of cash to develop my 90 acres land. I plan on finding other sources of income in order not to touch that one for at least three months.
Get back the price of my land with the development
My little house in Guatemala came with 90 acres (37 ha) of land that I am starting to develop next month. If everything goes as planned, we should make more than that, but I will be happy when the sales allow me to keep the rest of the land at no cost for me.
Pay $10K credit card by June
It is a 0% balance that I do not want to transfer to another 0% deal.
Pay my 7% consumer loan
This is a loan I took to invest, so technically not bad debt, but I don’t like to have it on top of my head. I already took a year off it last summer, and plan to eradicate $9K balance by the end of the year.
Take a trip back to Europe
I am thinking around May, for a month. $2500 with flights.
Take a trip to the US
I used to criticize Guatemalans who only go to Miami for shopping and the malls but now that I can see the lack of quality clothing, household items and tech goods, I understand that a flight to the US is cheaper than having your items shipped and heavily taxed by customs. I plan on buying a laptop, and will have to leave the country for immigration purpose anyway, so just the shipping on the laptop and the visa run to Mexico should offset the flight to Miami. $1500, with flights and shopping.
Those goals are quite high. Coming up with $25K to pay off debt and travel, while at the same time putting a lot of money into the development and growing my net worth means only one thing: I need to sell some land, quick!
But people won’t buy until we start developing and I think we will have upfront costs (architect, streets, dig a dwell for water, electric wiring…) of at least $25K each. The good thing is we paid cash for the land, so it is a huge relief not to owe the bank anything, and a security for investors that we won’t go bust.
The plots will be priced at about $15K for 1500 sqm (over 16000 sqft) and we are targeting foreign people wanting to live a simple life under the sun, or retirees coming to spend the winter here. Some friends have showed an interest in buying and holding for future appreciation, as the road is about to be asphalted and the region is developing quickly, plus it is a really nice place. But until I don’t see a signed contract, nothing is sure.
Look at that view! For $15K you get a piece of land, a basic house with two bedrooms can be built for around $30000 meaning a dream holiday home for less than $50K!
1/4 mile to the lake and 30 min to the international airport, supermarkets and conveniences, I think we are pricing very cheap. I will start the marketing early this year too.
What are your financial goals for 2013?