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How Much Money to Be Rich?

by SMD 



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This is probably as close as I’m going to get to a New Year’s goals or resolution post…resisting the urge to go into a lengthy diatribe as to why they don’t work…the short version…New Year’s is just another day, so if you can’t quit smoking / lose weight / get out of debt on any other day, forget it, you might as well just enjoy the parties and forget the resolutions.

Okay, what was I talking about?…Banff, sorry I couldn’t find an affiliate link for the Banff Springs. Just before Christmas my wife and I spent 4 days in this spectacular place, which happens to be about 4.5 hours drive from our place in Edmonton.

I’m not the kind who goes on vacations to see how many photo opps they can accumulate, that’s just more mental clutter, not relaxing at all. Our days consisted mostly of huge walks around town and the river valley. For 4 days I didn’t touch a computer…yes I had the shakes for the first two days but after that it was totally not missed.

Where this is all leading to is that I had the time and space to reflect, which is essential in business and life in general. Also to be noted was that I was in a town that is a world renown playground for the rich, which was inspiring to me. Just check out the link to the Banff Springs where the rooms start at $500 a night [I didn't stay there] and “afternoon tea” is $32 a person…I settled for an $8 cappuccino. To me these are all good things. The place is spectacular both in setting and architecture and it’s worth every penny of those outrageous prices.

So the question I asked myself was, “what would it take to get me to feel like a legitimate member of this snack bracket?”

I realized that I was building a company and working really hard to make money and didn’t have a concrete goal for where I was headed in terms of net worth.

The goal I came up with was $3 million and I gave myself a very generous timeline of 5 years [but I think I can do it in 3] to achieve it. Here’s how I see the breakdown: $2 million sitting in a corporation, invested conservatively producing a minimum of 150k per year in income. The other million will be my personal stash and probably about 750k of it will be used for 2 homes. One here in Edmonton and the other in Banff [of course]. Then I’ll have 250k in play money in the bank. With a home and vacation home paid for, $150k a year will put me in, by my standards, the world of the Rich.

I don’t think, in general, a person can get rich without making it a concrete goal. It is my belief that life will present you with what you are sincerely asking for, so I guess this is my New Year’s resolution, to become rich with a net worth of 3 million dollars. How about you, what is your target net worth and timeline…do you dare put down a concrete figure? Are you prepared to work for it?

Happy New Year and have a valuable 2006,

Jon

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Comments

5 Responses to “How Much Money to Be Rich?”

  1. Alison on June 13th, 2007 1:37 am

    Happy New Year! I would say that right now I have neither a target net worth nor a timeline, but that’s because my life is so in flux right now. So for this year my aim is to get to a place where I can actually set that kind of goal. That doesn’t answer your question, does it? ;-)

  2. chika on June 13th, 2007 1:37 am

    Happy New Year Specificity is important. I know my goals for my life and certainly know what I want to achieve by the end of this year. Thanks for sharing that.

  3. Jon on June 13th, 2007 1:38 am

    Happy New Year to you guys too. Alison, that’s a really good comment…I think I’ll need to write a post about the foundation that needs to be in place before goals like this can have a chance. Thanks for making me think!

  4. Ken on June 13th, 2007 1:38 am

    I want to share my goal with you. It’s 0.03% of your goal. But yes I plan to achieve it end of this year. Cheers!

  5. K on June 13th, 2007 1:38 am

    $3 million in 5 years. I’m going to hold you to that, Jon. If there’s anything I can do (in addition) to help, let me know!

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