During this time of uncertainty it’s important to see the big picture. If you look at today alone, the day may be filled with self doubt and isolation. However when you step back and look at time in terms of months, years, and even a decade your big picture may look brighter. That’s why I decided to create the Decade Money Challenge. Recently I looked at the past, the present, and now the future.
What is the Decade Money Challenge?
The decade money challenge is an opportunity to see what your finances, career, and health looks like today. But also to see how far you and I have come since 2010, a mere decade ago.
This challenge is for everyone, not just those with a website. After reading I’ve added a link for everyone on [tweetshareinline tweet=”Twitter” username=”EvenStevenMoney”] to join in.
I challenge you to look back at 2010 and work your way towards today, the present here in 2020. It’s an opportunity to see how you have changed, grown, succeeded, failed, and everything else in between.
Now that you have seen your life displayed in decades from the past and the present it’s now an opportunity to look ahead and predict what 2030 will hold. [tweetshareinline tweet=”#DecadeMoneyChallengeTheFuture” username=”EvenStevenMoney”]
Age
In the year 2030 I will be turning 48. That number as I sit here is astounding to me. In a mere decade I will be cuddling up to an age of almost half a century.
At the age of 48 I mostly care about my health. Not so much in the sense of how fast can I run a 5K or complete a CrossFit workout. No my health will be about keeping all of my knobs and pieces together at that point.
Health Concerns
I rarely talk about my family as it relates to their finances or health. I don’t think it’s my place to share their story. However one of main concerns as it relates to my health is my family history. Diabetes is prevalent on my father’s side and Alzheimer’s on my mother’s side.
It’s especially important in my situation to be in excellent health both physically and mentally. Type 2 diabetes has much less of a chance to an attack a physically fit 48 year old than an obese one.
While Alzheimer’s attacks the brain neurons it’s important to stay both physically and mentally to reduce the risk.
One never knows as the change from 18 to 28 to 38 has been something of a roller coaster mentally and physically. In 2030 my age will be pinch of salt and pepper away from 50 years old but based on how I have been feeling today, I just might feel like a teenager again in the future.
Career
Predicting my job or career over the next decade feels a little like trying to predict the weather. Especially since I only recently have started financial coaching and self employment.
What’s certainly a factor in all of this is OUR goal of becoming financially independent by the end of 2022. While this has some impact on my career or entrepreneur path, it has more of an impact on my wife.
Will she transition from her current position to a job with less hours, pay, responsibilities, etc. I’m not sure the answer but it certainly impacts my overall career path as she is currently the breadwinner of the family as it relates to income.
As you can imagine reaching financial independence in the next two (2) years could play a pretty big role on a career path.
Choosing a Career Path is Hard
Over the course of time since I left my job at U.S. Bank in July of 2018, I started my own business as a financial coach and worked as a self employed analyst on an Anti-Money Laundering (AML) project.
I hunt down money from drug cartels. False, 99% of the time I explain in common language why this person (s) or business is not money laundering.
When I left U.S. Bank I did not have a specific career or business path, but rather an opportunity to start a business that I was interested in. Many factors were considered including risk, capital, and knowledge of the industry. So to predict my future career or business is actually incredibly difficult.
I enjoy financial coaching and helping others reach their financial goals. Based on that statement I plan to continue helping others as it’s incredibly satisfying.
Besides hunting down drug cartel money, what else interests you?
There have been times where I have sought other interests. I’ve applied for positions that interest me and fit my values and plans with my wife. Here are just a few that come to mind:
- Financial planner
- Risk analyst
- Personal finance writer
I also have considered many other business opportunities
- Creating a coffee shop with workspace
- Real estate investing
- Owning a sports related business
Over the course of having financial freedom I have realized for me to be truly happy I need whatever project I choose to be something that I really enjoy. You know the one that gets you outof the bed in the morning like the smell of freshly brewed coffee or bacon from an iron skillet.
Money has little to do with getting out of bed in the morning. However I have also learned that for me to continue with that same level of inspiration my project does need to bring in money. I suppose I’m a capitalist at heart.
D&G Venture Capital
In 2030 and the years that lead up to it, it’s more likely that I become an investment manager of our own portfolio. I think some and maybe all of these opportunities will be included during that span. In many ways I want to run my own venture capital firm of one.
Stocks. Bonds. Real estate. Small business.
I want to be involved in funding and creating multiple revenue streams over time. If I look back and see a mobile coffee shop, investment properties, and owning small parts of multiple businesses I would look back and smile at the last decade.
Financials
Over the next decade I see a similar financial picture to today.
I will make not having consumer debt a high priority. I’ll consider a zero percent loan as it relates to more expensive items that depreciate like a car, couch, or some other fancy purchase over $1,000.
Although I will still gravitate towards paying for it upfront and without debt accumulation whenever possible.
It’s certainly possible that a new mortgage, HELOC, or investment property mortgage could be added to our financials over time. A new home in a different location, solar panels, swimming pool, or investment property are all real possibilities.
These purchases would require a significant amount of capital and one that I’m more comfortable paying over the course of years rather than depleting our growing investment portfolio.
Investment Growth
A growing investment portfolio is the main goal. Based on the rule of 72 our portfolio should have no issues of doubling its size assuming of course a 7-8% return over that time. Based on the 10 year track record of most of our index fund related investments this is a reachable goal.
Rule of 72 Examples
1%, it will take 72 years for your money to double (72 / 1 = 72)
3%, it will take 24 years for your money to double (72 / 3 = 24)
6%, it will take 12 years for your money to double (72 / 6 = 12)
9%, it will take 8 years for your money to double (72 / 9 = 8)
12%, it will take 6 years for your money to double (72 / 12 = 6)
What will be more interesting during this time frame is the amount of our contributions. With our current projections to reach financial independence in 2022, will our investment contributions shift because of decreased income or a shift in priorities?
It’s a difficult question to predict but I think it’s more than likely that we no longer max out our retirement accounts for the last decade and contribute a significant amount to our brokerage accounts.
Maybe I am being naive thinking that my wife’s income will drop drastically and my business or self employment will not contribute to make up for any shortfalls.
In a way I suppose I’m asking myself will I continue to save money at a significant rate compared to our overall income or is it more likely that our income will drop to a level closer to our overall spending. I think the latter is more likely.
Assets
As mentioned in our financials I would expect our investment portfolio to grow and double in size. I predict our level of investment contribution will fall off some as we reach financial independence.
We will most likely own the same home we have free and clear, maybe with the addition of a solar panel or a pool.
But I think it’s just as likely this home goes back to being a rental home providing monthly rental income and our new home is somewhere a little quieter with a little more land.
If we both are not working what’s the need for being close to a grocery store, gym, etc.? Wouldn’t a bigger garden, garage style gym, and a little more space fit our wants and needs.
Vehicles
If the 2007 Toyota Sequoia, the Sacagawea as I have affectionately named her, makes it to 2030, she will be on the edge of receiving antique collector plates. The odds of us acquiring a different vehicle like a Toyota 4 Runner or Toyota Camry are expected, but maybe we will become a two vehicle family for the first time.
Assets & Wants
I go back and forth on many potential assets so I thought I would have some fun and list them off, maybe that will slow me down from making any large purchases.
- Vespa scooter
- Home gym
- Pool
- Boat
- Vacation home in a cooler outdoor friendly climate
- Season tickets to a sporting team
- Partner/Silent Owner in a business
Now not all of these assets are exactly income producing or appreciating assets, but it’s fun to make a list and decide if that’s really what I want and need. I look forward to seeing how these purchases potentially fit into my values over the next decade.
[tweetshare tweet=”Everything I spend time, energy, and money I want to be part of my values. ” username=”EvenStevenMoney”]
Health and Fitness
What does health and fitness even look like at 48? Should I be happy to just not have a beer belly or Dad bod?
Realistically because of my family health history those things are not an option for me. I’m sure you have seen it in friends and family that as one ages things become a little harder.
What inspires me is to see individuals in my own gym be able to do some amazing things. For example there are two individuals that at the age of 60+ and 70+ are doing Crossfit workouts both at an RX level and a scaled level.
I think my favorite example is my former coach as she is 50+, built like Wonder Woman, and has the flexibility of a yoga master. She is my inspiration as I age towards 50 in the decade. I would like to stay healthy, fit like Wonder Woman, and have some above average flexibility.
It’s important to me that I stay healthy, flexible, and strong as I get into my later years.
I really do think CrossFit is a great way to do that even as I get closer to 50, like these guys and gals.
Today it’s amazing to be able go for a long run, bike ride, or ocean activity and not be sore for days or out of breath. My plan is to continue this same line of fitness.
I look forward to maybe even adding in a bit more golf, surf, kayak, and hiking to the mix as part of my overall fitness.
If I’m living near a mountain I want to hike. If I’m living next to an ocean I want to get in the water.
My health and fitness is extremely important to me and my values. I plan to keep my same level of fitness, at the very least and as time goes on I would like to even increase my level of fitness.
Summary Decade Money Challenge The Future
As I glimpse into the next decade I can already see my tone begin to change, it’s like I’ve already aged right alongside my decade money challenge.
It’s important for me to remember that 2010 was difficult and 2020 has brought me to a humbled and blessed financial position including my current health and fitness levels. The next decade is about allowing my assets to grow and understand what got me to this blessed and humbled position. What is that you ask?
Keep things simple
Earn income, spend less than I make, and invest the difference.
Save and invest in what I can understand and explain to my 60+ year old mother. Don’t buy things, but rather enjoy experiences. Choose to do work that interests me and puts a smile on my face most days.
One thing as I close the chapter on my 1, 2, 3 part series of the Decade Money Challenge is that while financially a lot of the hard work has been done, don’t be afraid to do a little more. If the right opportunity is available take advantage of your financial position.
Above all enjoy the moments, the journey, hard work, success, failures, and everything in between.
Coming Soon
I hope you enjoyed reading my Decade Money Challenge The Future. I enjoyed writing this so much I actually created a three (3) part series.
Over the course of May I released the remaining articles of the Decade Money Challenge. While this article focused on the future, the others will focus on the present and the past. Make sure to subscribe so you don’t miss out on future series just like this and of course my monthly newsletter.
Want to be included in the Decade Money Challenge, click on the below link and share with us!