If I don’t accomplish anything else this year, I must become a landlord.
It’s not just my chief goal for 2024. It’s a critical step on our journey to financial freedom.
Home ownership isn’t my dream. Having others pay my mortgage is. The sooner I achieve that, the sooner I will eliminate my biggest annual expense, which is housing.
Every money move I make this year must be made with my chief goal in mind.
And that’s a testament to how much has changed in a year.
When I listed my financial goals last year, a heavy focus was on fixing my foundation. Investing took a back seat. Basics such as eliminating my remaining debt and building my freedom fund took precedence. But now I’m ready to invest.
My debts are mostly paid. My freedom fund is healthy. My foundation is solid.
Securing an owner-occupied, multi-family home is the next best investment I can make. It’s not fancy or flashy. Instead, it’s a no-brainer continuation of our simple, slow and steady path to wealth.
I’m paying almost $15,000 each year in rent. I know my people in New York and California probably want to launch tomatoes at me for daring to complain. It’s a relatively low amount. But I see a path toward not even paying that. And each dollar I reduce my living expenses by is another dollar I’ll have to invest.
That’s when wealth-building can truly begin.
And that’s why buying a building is my No. 1 goal in 2024.
A few other additions have been added this year. There are areas I’m targeting for my future and a new car loan that needs to be knocked out.
But mostly, my wealth-building journey remains the same. I’m betting on consistency carrying me in this race. And I view time as being on my side, rather than my competition.
Here are my financial goals for 2024.
Tithe: It’s still the best money move I’ll make. I’m proud to say I remained faithful with my charitable giving for all 12 months in 2023, directing 10% of my annual salary to a church through tithes on the first of each month. I will continue this practice.
Meet employer’s 401(k) match: I committed to this last year as well. I see no reason to stop now. As long as my employer will match my contribution up to a certain percentage, I’ll take advantage. As I’m learning to invest, however, I can see a scenario where I funnel less money here and manage more myself.
Max out my Roth IRA: No matter what, maxing out this account annually is now a must for me. It’s too important for my future to ignore. It’s putting me on the path to millionaire status.
Pay down my car loan: Buying a more reliable vehicle added a little necessary debt. For the Toyota Camry I purchased in September, I have $11,053.05 remaining on the loan. The note is $231.78. But I’m paying $300 monthly to eliminate the debt sooner. As I receive lump sums for additional work, those funds will go toward my car loan as well.
Buy a multi-family building: I’m hellbent on flipping the equation on the first of every month. Instead of paying rent, it’s time I collect checks. I can’t wait to significantly reduce my living expenses and gain additional investing capital.
Dollar-cost average into total stock market fund: Dollar-cost averaging is when you invest a fixed amount into the stock market on a routine schedule regardless of an equity’s share price. Studies show it’s one of the most sensible, if not effective, investing strategies. Regrettably, I still have a bad habit of trying to time the market. That must stop.
Invest $4,040 for Parker: This is the amount I’ve tucked away for my daughter in two of the past three years. I’ll continue this annually until Parker is 21 and becomes the legal owner of this brokerage account. It’s part of her wealth foundation.
Max out Parker’s Roth IRA: I told you last week that this account requires my attention. It’s the vehicle that is sure to make Parker a multimillionaire. I might not be able to max out this account. But I’ll do my best to come close. No matter what, though, I must start her contributions here in 2024.
Max out my HSA: I’ll write more about my new health-savings account next week. But this is an underused, triple-tax advantage vehicle that I believe will aid me in my wealth-building journey.
Use employee stock program: My employer offers eligible employees a discount on its stock. I enrolled for a small percentage, because why not? Even if the stock plummets, I will have acquired a few shares below market value. It’s worth the small investment to see what happens.
Darnell Mayberry is a sportswriter based in Chicago and is the author of “100 Things Thunder Fans Should Know & Do Before They Die.” He loves his daughter Parker, money and the Minnesota Vikings. You will find his column, Money Talks, each Saturday on cleveland.com and Sundays in The Plain Dealer.
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As an expert and enthusiast, I don't have personal experiences or beliefs. However, I can provide information on the concepts mentioned in the article you shared. Let's go through each concept one by one:
Landlord and Financial Freedom
- Becoming a landlord is seen as a critical step towards achieving financial freedom. The author believes that having others pay their mortgage will help eliminate their biggest annual expense, which is housing.
- The goal is to collect rental income and reduce living expenses, thereby gaining additional investing capital.
Financial Goals for 2024
The author outlines their financial goals for 2024. Let's discuss each goal briefly:
- Tithe: The author plans to continue giving 10% of their annual salary to a church through tithes on the first of each month.
- Meet employer's 401(k) match: The author commits to taking advantage of their employer's 401(k) match program, where the employer matches their contribution up to a certain percentage.
- Max out Roth IRA: The author aims to contribute the maximum amount allowed to their Roth IRA account annually, considering it an important investment for their future.
- Pay down car loan: The author has a remaining car loan balance of $11,053.05 and is paying $300 monthly to eliminate the debt sooner.
- Buy a multi-family building: The author's primary goal is to purchase an owner-occupied, multi-family home to reduce living expenses and gain additional investing capital.
- Dollar-cost average into total stock market fund: The author plans to invest a fixed amount into the stock market on a routine schedule, regardless of the share price, using a strategy called dollar-cost averaging.
- Invest for Parker: The author has been setting aside an amount for their daughter, Parker, in a brokerage account and plans to continue doing so until she turns 21.
- Max out Parker's Roth IRA: The author aims to contribute the maximum amount allowed to Parker's Roth IRA account, considering it a vehicle for her future wealth.
- Max out HSA: The author plans to maximize their contributions to a health-savings account (HSA), which offers triple-tax advantages.
- Use employee stock program: The author intends to take advantage of their employer's stock program, which offers eligible employees a discount on company stock.
Please note that the information provided is based on the content of the article you shared.