By admin@thesilverpetticoatreview.com 
I recently came across a statistic that said only 17% of people have long-term goals, and just 3% have written them down. It also mentioned that people who write down their goals are five times more likely to achieve them. A few years ago, I would’ve thought these stats were nonsense. I believed everyone had goals; they just found them hard to achieve. But after spending the past few years focusing on my dreams of financial independence, my outlook changed. I’ve realized that many people don’t set long-term goals, particularly in finance, making it tough to create an actionable plan based on their values.
So, where do you see yourself in 10 years? While it might be a common interview question, it’s a valuable exercise to revisit occasionally. I graduated from engineering school three years ago and have been working in environmental sustainability. I love it, but I don’t see myself doing it forever. In 10 years, I’d like to be preparing for a “retirement” from my traditional job to focus on either raising a family, becoming a high school science teacher, or running an environmental non-profit.
I aim to have a net worth of around $700K invested in stocks, bonds, and real estate, which should yield about $28,000 per year under a 4% safe withdrawal rate—22% more than I currently live on. I plan to achieve this by saving over 50% of my salary annually and investing it in diversified index funds and real estate. I’ve created a detailed spreadsheet to track my progress, and so far, I’ve surpassed my financial goals for the first two years. While there are many ways I could fail or my priorities might change, having a goal with actionable steps has made a significant difference.
Here are some decisions I’ve made to reach my goal of financial independence:
1. Housing Choice: I live in a decent apartment on Chicago’s north side with a roommate. It’s not fancy, but it’s affordable. Some friends opt to live in expensive neighborhoods, spending large portions of their paychecks on rent or mortgages. Without my clear financial goals, this might seem appealing, but I’d rather invest in my financial independence.
2. Driving Less: Driving used to be a significant part of my life, with a 30-mile commute each way. It drained both my time and money. After evaluating my long-term priorities, I realized driving didn’t fit my plan. Now, I commute by train and bike or walk everywhere else, reducing my driving significantly, unlike friends who invest heavily in new cars.
3. Investing Wisely: I once thought the stock market was like gambling. However, after learning more, I understand that index fund investing is a sound way to grow wealth over the long term. Consistently investing a steady amount in the entire market is a more reliable path to financial independence than trying to pick winning stocks.
4. Shopping Mindfully: Reviewing my spending on Mint.com made me realize I used to buy things impulsively. Now, I prioritize my long-term frugality goals, reducing my shopping allowance by 62% without affecting my quality of life. This small but powerful change has streamlined my spending.
5. Enjoying Life More: Before examining my true desires and financial dreams, I believed buying things made me happy. I’ve since realized that long-term happiness comes from experiences, not stuff. I now spend more time outdoors, with friends, and enjoying nature, all of which cost little but significantly boost my happiness.
So, is having a somewhat vague financial independence goal and a 10-year plan enough? Who knows? While many people set ambitious financial goals and fail, even if I don’t achieve complete financial independence by 35, I’ll have established passive income, reduced unnecessary expenses, and focused on things that truly make me happy. That doesn’t sound like failure to me.
There are numerous success stories online of people who have achieved their goals and shared their journeys. These stories inspire me to try too. By setting and writing down big, long-term goals, I’ve significantly increased my chances of success.
What long-term goals have you set and written down? What goals do you wish to achieve that you haven’t yet documented?