Wednesday, September 30, 2009

Day #13: The Automatic Millionaire Workbook; Introduction, part 2

Yesterday, I discussed the American Dream and what it means to me, as well as a bit of what I'll need to realize the dream.

Today, Bach gives us the names of a couple, Jim and Sue McIntyre, whom talked to Bach about early retirement and how their values influenced how much money they'll need to live the way they wanted.  Bach suggested writing out a "Values Conversation", a pie sliced into six pieces.


Value
Enjoy my retirement life
Continue to tithe
Be able to see relatives regardless of distance
Travel!
Continue to educate myself in hobbies or new ways of enjoying work (ie a new skill)
Enjoy my home with a sense of happiness and security (ie sunlit room with a piano to create new songs)


After this exercise, Bach builds upon these goals with the Automatic Millionaire Goal Developer, which takes your 6 values and breaks them into smaller actionable goals.


The Automatic Millionaire Goal Developer
Value
Actionable Goal
How much will it cost?
Enjoy my retirement life
Save money in my 401(K) and Roth IRA
$2mil
Continue creating passive income streams through blogging, composing, etc
$?
Enjoy spending money on things that are important to me and not spending money on things that I don't care about
$?
Continue to tithe
Give 10% of my income (or retirement withdrawals) to the church
$500,000 (just a ballpark figure - I hope to leave a large chunk of money upon my death)
Be able to visit relatives and friends regardless of distance
Sign up for frequent flier programs or a credit card that gives back miles
$0-$50 (it better be a good deal if I'm going to pay for it!)
Have a vacation fund for this type of travel (not include the "Travel" goal)
$250,000
Travel!
New Zealand!
$15,000
Europe!
$25,000
Israel!
$15,000
Continue to educate myself through hobbies or learning a new skill
Get a Master's degree (perhaps PhD) in Music
$100,000 (ballpark, guessing large for inflation)
Exercise interests in music, writing, cooking, vegetarianism, minimalism, reading, investing
$0-$500,000 (depends if I just go to the library or if I purchase equipment for the hobby)
Enjoy my home with a sense of happiness and security (ie sunlit room with a piano to create new songs)
Buy/build a  house that suits my creative needs
$200,000
Have some sort of self-sufficient house (solar or wind power) if I can handle or hire for the upkeep
$100,000+


This is a great chart to remind myself of my long-term goals and as I age, I can revise them easily.

«Laura»

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