Five Year Financial Plan

our finest moments are most likely to occur when we are feeling deeply uncomfortable, unhappy or unfulfilled. For it is only in such moments propelled by our discomfort, that we are likely to step out of our ruts and start searching  for different ways  or truer answers” M. Scott Peck

Its always a great idea to have a mid term plan because it helps give your life some sort of direction and purpose and a mid term plan can span anywhere from three to ten years. I think its important to start thinking this way from around high school, I did not and that is why I suffered a couple of years “wondering in the desert” lost without direction. It does not mean that you do exactly whats in your plan because even if you do not, that plan gives your life valuable direction and sometimes the achievement of great things take time.

The other day, it just hit me that I need to have a mid term financial or career plan because if I want to elevate my career and earn allot more money then I am now, then something has to change drastically. I need a “vehicle” that will propel me to a higher income bracket so my choices are to start thinking about changing jobs or gain a good executive MBA. Self employment is also a very viable option and an MBA can also help me launch a business in terms of connecting me to the right people. So my five year plan should encompass all these different options.

I have calculated, that in my current job and  salary it would be nearly impossible to save enough to retire in say ten years even if I save the majority of my income. I just do not have many options where I can invest and make lots of money. Real Estate I fear is very overvalued in Kenya and mortgage rates completely unrealistic. In my plan/goals below you will notice there is no goal to buy a plot or a house but of course things can change in which case I may change my mind. So below are the things I plan to achieve in the next five years, that is before August 2021!

  1. Have paid the balance on my two credit cards in full and be completely debt free
  2. Have a six month emergency fund saved
  3. Own a car outright
  4. Have an investment portfolio that is paying me anywhere between 1,000,000 and 2,000,000 shillings per year in passive income
  5. Acquire the CFA Charter
  6. Gain a good score in the GMAT – above 700 if going the MBA route
  7. Gain public speaking skills by consistently working everyday on this – watching tutorials, reading books about public speaking and getting practice
  8. Have a great job managing a team of people and a portfolio ie be a proper fund manager
  9. Reach my goal weight
  10. Add hiking as an extracurricular activity
  11. Continue a regular yoga practice
  12. Public Service – find an avenue that I can contribute and give back to society

 

Happy planning!

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