# What are your financial goals?



## FrugalTrader

My goals are made public, but I'm curious, what are your financial goals? 

Besides my net worth goal, my ultimate financial goal is to have enough investment income to cover all of our expenses (and then some).


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## CanadianCapitalist

Our goals are fairly simple:

1. Financial Independence. I'd like to be at a point where we don't rely on a pay check and any work we do is because we love it, not because we have to.

2. Save for retirement; hopefully early, say when I'm 55. (Yes, I'm sticking to Freedom 55).

3. Save for kids' education. We do intend to pay for our kids' undergraduate education; after that, they are on their own.

I'd suspect most people's financial goals are along those lines.


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## Canadian Finance

Have the mortgage paid off by 50
Retire by 60
Survive the next 2-3 years while the wife is off work having kids!


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## Patricia

As a retiree my financial goals are:

1. Maximize savings afforded by income splitting to keep us in the lowest tax brackets. 
2. Continue to save at least until I'm 65. 
3. Continue to educate myself on investings and build a home resource library.


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## moneygardener

Make money less important in my family's life.

Achieve this through a high rate of savings, investing in dividend paying stocks for the long term, and making the most efficient use of money always.


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## darkwing_1978

Debt Free (with the exception of the mortgage) by 30 - complete
Mortgage Free by 40 - working towards this
Enough Investment Income to cover Expenses by 55 - working towards this


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## Sampson

1. Retire by 55. - by building up nest egg large enough to self sustain our $40-$60k expected expenses.

2. Pay of mortgage on principle residence in 16 years from inception. (1 year in )

3. I really like MG's - make money less important in my family's life. After just returning from Vancouver Island, I'm feeling like we could live a simpler (less expensive lifestyle). This really could be as easy as off-loading some debt (from the rental).


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## fifi

1. Primary mortgage paid off within 4 years.
2. Not have to worry about not being able to afford the occasional luxury, like a new pair of expensive runners, buying the 'good' ketchup, or ordering the odd pay-per-view event--my wife's making me work on that one (ie being ok with spending money too)...give me a couple years...
3. Pay off trailer for camping with family (3 months to go!)
4. Keep regular investing through highs and lows of economy.
5. NOT look at my net worth when I know it's less--only look on the good months..I guess a goal would be to see the positive more (ongoing, but getting there!).
6. Retire by 55.
7. Support about half of kids' college/university expenses (I think they should cover some of it).
8. Have at least one vacation condo, even if shared with some family, somewhere out of the city, by 50.


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## moneygardener

"buying the 'good ketchup'" LOL ... I love it.


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## The Financial Blogger

#1 make enough money so my wife can stop working
#2 make enough money online so I can stop working 
#3 get a loft downtown Montreal where I will have my office, work 8am to 4pm and play golf on Friday.

it doesn't hurt to dream, doesn't it?


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## Four Pillars

Mine are identical to Canadian Capitalist.

If I could only state one goal it would be to get to the point where I'm not sweating bullets on "layoff" days....


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## Financial Highway

Mine is pretty much the same as everyone else,

Financial Freedom, where I don't HAVE to work but want to. that is pretty much the ultimate goal and would like to achieve that by 45-50


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## mfd

CanadianCapitalist said:


> Our goals are fairly simple:
> 
> 1. Financial Independence. I'd like to be at a point where we don't rely on a pay check and any work we do is because we love it, not because we have to.
> 
> 2. Save for retirement; hopefully early, say when I'm 55. (Yes, I'm sticking to Freedom 55).
> 
> 3. Save for kids' education. We do intend to pay for our kids' undergraduate education; after that, they are on their own.
> 
> I'd suspect most people's financial goals are along those lines.


Mine and CC's are exactly the same. With the exception of education. We do intend to pay for their education but there will be a few exceptions that if we can muster it will pay for some extra education like medical school. We aren't going to pay for 8 years in some arts program though. They can find themselves on their own dime


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## refutor

Mortgage paid off in 8 years, retire at 50


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## MTNG

Long term? Financial freedom. 

Closer term? 
6 months worth in my contingency fund
$1500/month passive income
Save for downpayment on another rental property


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## DrStan

Interesting how many of these posts are similar... These are the goals my wife and I have set:

1. House and all debts paid off. Done last year at age 30.
2. Retire at 55 with $80K net income in 2009 dollars. We're on track.
3. Take 8 weeks off every summer with the kids, starting in 3-4 years.
4. Raise money savvy kids. If only my parents had taught me better... Things like: put away 10% of everything you make; don't buy a new car as a 19-year old male, the insurance will ruin you; negotiate; invest in low-cost funds... my kids will know this.
5. Become millionaires next door. Keep the same lifestyle, but have money working for us, instead of the other way around. That's sweet.


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## UpNorth

Short Term: By the end of the year we want to pay off our student loans and the car loan, get married without going in debt and start to build our emergency fund.

Medium Term: Max out our RRSPs and TFSAs, avoid all consumer debt, ramp up our mortgage payments and build a good sized emergency fund.

Long Term: Over the course of our working lives, we want to continually use our employers deferred salary leave programs. Every two years we'll take six months off or every four years we'll take a year off (or some combination like that). To me, that's finanical freedom, but now. Ultimate finacial freedom by 55-60.


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## Alexandra

I don't know if this is bad or not, but my goals keep changing. I guess you'll miss your target unless you adjust to changes in the wind though, right?

Here's the deal:
My husband changed careers and now is self-employed in a field where he is building a business that can sustain itself all his life with less and less input as he ages. So he doesn't want to retire. Before this change I had wanted to retire early, but with my husband at my side, so now I don't see the point.

I am thinking that maybe later on I will leave my career to work with my hubby as an admin or something easy, that doesn't pay particularly well, but that is stress-free and allows me to spend time with him. We can half-retire to warmer climes in the winter months and work together in the summer.

His career move has really changed the picture of what our retirement will be like, so I am still trying to get a sense of what I will want. 

Anyone else in the same boat? What do your retirement goals look like when you are not really going into traditional retirement?


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## moneygardener

*Enjoyable Thread*

Great thread to read. DrStan I love your #5.


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## Tim

*Goals*

Goals?!?! Mmm, I haven't played hockey in years. I suppose I remember how to do it. 

Long term: Make working optional at age 45 (plus or minus four years).

Short term:
1) Pay off mortgage in under 9 years. 
2) Start a hobby business of publishing and try not to lose money at it.


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## wealthycanuck

- Max out my RRSP and TFSA
- Pay down the mortgage
- Build enough wealth and passive income to quit my day job to have more freedom


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## maelstrom

short term, pay cash for summer vacation
next 18 months, fill up emergency fund
next five years, save for bigger house


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## Hazelnut

My financial goals are modest (I've been a single parent living on one income for 15 years), public (I'm on a five year plan to retirement at age 58) but here they are in a nutshell (no pun intended):

1. Pay off all debt in 30 months (LOC only, my condo is paid off)
2. Save $125,000 (cash and RRSPs; does not include the equity in my condo)
3. Live small, leave a small ecological footprint; sell the condo and move to the east coast, buy land and be self-sustaining.

Simple and hopefully attainable. So far, I am on track...well a wee bit ahead of schedule!


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## Retireat50

Really only financial goal that I have is trying to increase the yield of my current investments while trying to maintain the conservative slant to them.


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## Rickson9

FrugalTrader said:


> My goals are made public, but I'm curious, what are your financial goals?
> 
> Besides my net worth goal, my ultimate financial goal is to have enough investment income to cover all of our expenses (and then some).


My wife and I have goal of $3M in assets by our mid-40s, $6M in assets by our mid-50s and $12M in assets by our mid-60s. We are on track and we feel they are realistic.


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## The_Number

Short-term (Within year)
- Save for Major Purchase #1 (in 1 month)
- Save for Major Purchase #2 (in 1 year or so)
- Max out TFSA and RRSP for the current year

Mid-term (4-5 years)
- Save $50k as downpayment for a house.
- Save enough money to afford a child.

Long-term
- Build large enough investment so that the gain (growth + income) exceeds all expenses
- Pay off the mortgage
- Save enough for the child's education
- Reach the net worth of $1 million (and more...)
- Build a large enough investable asset so that the income from the guaranteed investment (e.g., GICs, high-yield interest saving account) exceeds all expenses.


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## Emeth

FrugalTrader said:


> My goals are made public, but I'm curious, what are your financial goals?
> 
> Besides my net worth goal, my ultimate financial goal is to have enough investment income to cover all of our expenses (and then some).


My financial goals are fairly basic:

1 - To have enough savings and dividend paying investments to be free of the need to rely on a paycheck. Realistically I don't see this happening before age 60.

2 - To own a small place of my own. I still live with family (it's a good arrangement for everyone) but would like a place of my own.

3 - To be able to take a the occasional vacation without breaking the bank.


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## cobweb

My financial goals,

Short term:
Renew mtg. as close to current rate(prime -.55)(good luck)
continue financing Daughters college experience 

Mid term:
Pay off mtg by age 55(12 yrs.).Then buy Fla. retirement manufactured home.
Continue contributing to DRiPs,TD E-funds and company pension.

Long term:
Retire at 65
Sell house,buy condo
7 months Can.,5 months Fla.
golf


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## ShowMeTheMoney

My financial goals were side-tracked somewhat by divorce. So my new goal is to pay for my house, a second time. Then pay for my kid's education. I want to keep doing the job that I love, for as long as I love it. Since it's relatively well paid, I live well (only the best ketchup for us!) but below my means. I max out my Pension plan, RRSP, TSFA every year and invest it best for retirement so I can continue living well for a long time. I'm insured for everything important. I don't have any figures to aim for, as stock markets, inflation, interests rates, etc... are not under my control, and I'm not competing with anyone. Being happy living below my means is what I want to continue achieving.


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## Brad911

To create a tax-efficient income stream that supplements or replaces my annual income by age 50 and become debt free by 45.


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## augustabound

I'm the same with Brad, but realistically, retire by 55, mortgage free by 50. 
Moving to a less dense area is on our list, but there's no time line put on that.

Ideally I would like semi retirement as opposed to full retirement supplementing my income with a hobby that I can profit from. I'm a contractor so furniture building would be something I could enjoy while making some cash selling it.

Of course leaving time to travel and play golf is a must in my semi retirement.


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## michika

1. Become debt free, both as an individual, and the other half to a relationship. I'm in a better financial position then my partner, however its a joint effort overall. - Should manifest itself by the summer of 2010 for all of our debts.
2. Pay off/out my mortgage in less then 15 years - Started with adjusting the payment schedule, and so far thats all we can do for now.
3. Grow a nice comfortable savings cushion - I keep starting and getting set back, which is highly frustrating.
4. Go back to school - Started
5. Re-start and continue contributing to RSPs. - Started


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## vikdulat

michika said:


> 1. Become debt free, both as an individual, and the other half to a relationship. I'm in a better financial position then my partner, however its a joint effort overall. - Should manifest itself by the summer of 2010 for all of our debts.
> 2. Pay off/out my mortgage in less then 15 years - Started with adjusting the payment schedule, and so far thats all we can do for now.
> 3. Grow a nice comfortable savings cushion - I keep starting and getting set back, which is highly frustrating.
> 4. Go back to school - Started
> 5. Re-start and continue contributing to RSPs. - Started


Good luck with this. Going back to school is always a great investment.


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## michika

Thank you.

I really hope it pays off, and if not, this time around I'm taking two practical degrees that I like, versus my first degree that has done nothing for me in terms of helping my career.


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## FinancialJungle

Nice thread!

Short-term goals:
* Increase investment income to 100% of annual expenses - currently at 60%.
* Increase savings with salary raises - not much room to cut expenses.
* Optional goal - buy a house when the price is right.

No concrete long-term goals.

Don't have a retirement age in mind. I doubt financial freedom will stop me from working when the job is engaging enough. But then, maybe I'll change my mind when the nest egg is there.  What would I do to fill the free time in retirement? I can only play hockey/basketball for so much. I heard that we age faster when there isn't a sense of purpose.


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## FrugalTrader

FinancialJungle said:


> Nice thread!
> 
> Short-term goals:
> * Increase investment income to 100% of annual expenses - currently at 60%.
> * Increase savings with salary raises - not much room to cut expenses.
> * Optional goal - buy a house when the price is right.
> 
> No concrete long-term goals.
> 
> Don't have a retirement age in mind. I doubt financial freedom will stop me from working when the job is engaging enough. But then, maybe I'll change my mind when the nest egg is there.  What would I do to fill the free time in retirement? I can only play hockey/basketball for so much. I heard that we age faster when there isn't a sense of purpose.


Wow, 60% of your expenses are covered by passive income?? That is very impressive, do you hold a lot of income trusts?


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## archanfel

My goal is worth 20X my income, then I would consider myself financial independent. Far behind the curve right now.


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## FinancialJungle

FrugalTrader said:


> Wow, 60% of your expenses are covered by passive income?? That is very impressive, do you hold a lot of income trusts?


About 20% of my portfolio is income trusts, but I have virtually no oil and gas trusts except for a bit in Canadian Oil Sand.


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## Mockingbird

1) Mortgage free by 41 (Initially planned 15yr amortization, but now on target for 7yrs)
2) Purchase a secondary income generating business by 45.
3) Retire by 55. (or earlier if #2 works out)


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## refutor

*goals (updated)*

1. investment totals more than my yearly pay
2. investment totals more than what's left on my mortgage
3. pay off mortgage by 40
4. quarterly dividends more than one paycheque
5. buy one share of BRK-A http://www.google.ca/finance?tkr=1&q=NYSE:BRK.A
6. monthly dividends = two paycheques = financial independence
7. assets worth my weight in gold http://www.onlygold.com/tutorialpages/YourWeightInGold.asp


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## Shayne

Pay off a $316K mortgage in five years. I am on track and have 4 years left. I will then quit my secure government employment and say good-bye to shift work forever.

www.debtfreeby43.com

I would love your feedback on the site. Not much experience blogging, but so far it is fun!!


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## ethos1

wendypollman said:


> Everyone wants to be Debt Free... so all you have to do is to develop the habit of saving!!! Pay your monthly bills to avoid
> past due and interests may increased as higher as it may be!


agree & payday loans wont help you out of any debt mess that someone is currently in

Wendy do you own a payday loan franchise or just work for them?


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## canadianbanks

My ultimate goal is financial independence, which is ever shifting target


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## moneygardener

Am I alone in stating that paying down my mortgage is my last priority right now and does not even enter the realm of my financial goals?


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## FrugalTrader

moneygardener said:


> Am I alone in stating that paying down my mortgage is my last priority right now and does not even enter the realm of my financial goals?



We're aggressively paying down the mortgage, however, that just opens up space in my HELOC to invest with.


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## Sampson

We don't put all our resources into mortgage pay-down either, although we do top up a fair amount annually - BUT our RSPs and TFSAs are maxed, and we have some non-registered investments.

Since we bought our second place, we're on schedule to pay-off the mortgage in about 12 years. I'm comfortable with that number considering we've got a very good interest rate. We could be one of those people paying off the mortgage after 5-7 years, but I see no point.

What I don't understand, is that if people are so debt adverse and want to pay off their mortgage in 5 years, why not just invest/save for 5 years, then payout the house upfront? I think its because most people appreciate the benefits of the relatively low interest leverage mortgages provide.


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## moneygardener

My rationale for not putting any emphasis on my mortgage, besides using accelerated bi-weekly payment versus bi-weekly, is that if I allocated funds to mortgage paydown I would essentiallly be choosing to skip several years of potential invesment growth.

If I wanted to, I could eventually sell my investments and use the funds to pay down the mortgage in full (avoiding as much penalty as possible). I could then borrow the entire amount back against my home and the interest would then be tax deductible. This seem to make more sense, rather than paying the mortgage off as the years go by and then borrowing against it to invest. I guess it all depends on interest rates vs. rate of return though... I guess I just like challenge and risk better than certainty...


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## Sampson

Preaching to the converted. 

Only if people believe the will not get an annual post-tax return of 5% over 10-20 years should they be paying down the mortgage first. I'm guessing most DIY investors believe they can achieve that and higher over that time frame.


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## Cal

Moneygardener - another advantage of not paying down the mortgage, is if you have a home business/office, the tax advantages of claiming 1/15th (as an example ratio of home to office space square footage) on a $1500 mortgage payment can add up over the year.

If your mortgage is paid off all you get to w/o would be the 1/15th of you expenses for the home office.

I guess it depends on your business....but every little bit helps....especially when it comes to tax dollars.


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## Maria Charon

The answer is probably the same for a person as it is for a corporation.Businesses maintain budgets in order to create and enforce what they call fiscal discipline. Somebody usually makes sure the budget is followed.


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## Organic Trader

I just sold my business after 10 years. My goal is to wisely invest the proceeds of the sale so I never have to work again. I'm passionate about stocks and personal finance so I guess this is my new job, but it doesn't feel like work - it's way too fun!


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## Chigu

Quick question. How do you get passive income? Do you invest in dividend paying stocks/income trusts etc? Because most regular stocks just have capital appreciation and you don't see any 'income' until you sell the stock/mutual funds. 

Note: OTHER than rental property, what would be the source of your 'passive income'. Thanks


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## Shayne

*Paying off Mortgage*

There are obviously some different opinions out there in regards to paying off the mortgage. Depending on your mortgage rate I don't believe you will find a better *guaranteed* after tax return as paying off your mortgage will give you.

We are going this way because we both have defined benefit pension plans and I have a considerable amount in my RRSP. 

Not sure what new goal we will come up with after our mortgage is retired, but I do see a 2 month vacation coming in the summer of 2013.


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## remin12

To be financially secure, having to worry about debt, loans how how many points your credit rating says you have!


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## tom_ford

- to have enough money for our own house
- to be able to send our kids to a great school
- save for retirement
- have enough savings for emergencies


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## Rickson9

Elmira Nancy said:


> Well, most people, hopefully, want to be financially independent. Writing your goals is an excellent strategy. There are many biblical principles that mention this as well as many "gurus" who say the same thing. This is one of the suggestions we mention to our new business partners as they join our organization. What it does is keep you focused and provide you with a road map. Think of it as driving to a destination you have never been to. Without a map, you may reach your destination through trial and error, but you will reach your destination much quicker if you have directions
> 
> Best wishes...


I never found writing things down to be very helpful. IMO.


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## Steve19

Rickson9 said:


> I never found writing things down to be very helpful. IMO.


I have to agree. I've tried writing things down and tried to keep myself on track, but let's face it, life sometimes gets in the way and you will have to change your plan. 

My financial Goal? KISS. How am I going to achieve this? By not worrying about it, saving my pennies, and most importantly, be practical. I read and listen to a lot of sound financial advice, and the fundamental principals are always apparent - live within your means.


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## John_Michaels

Rickson9 said:


> I never found writing things down to be very helpful. IMO.


Different for everybody but for me, I find the >process< of writing down anything I want to do always very helpful. Once it's on paper and I'm able to read it, I always find better ways to do it. I'm not saying I have a written financial plan but I have many different draft versions, each more refined than the last.

Financial goals are;
1. make wage slaving optional asap
2. child's education


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## logicfirst

Well given that 2009 is done and over with my financial goal for that year was to have saved 44k and that is what I did. I am extreamely excited and hope that in the next two years I will be able to come up with a 30% down payment on my first home.


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## Wealthy1Day

Congrats on achieving your goal and good luck moving forward!


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## OhGreatGuru

FrugalTrader said:


> My goals are made public, but I'm curious, what are your financial goals?
> .


Live rich, die poor.


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## steve41

Hey that's close to my (company's) tag line... "Live Rich, Die Broke"


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## HaroldCrump

steve41 said:


> Hey that's close to my (company's) tag line... "Live Rich, Die Broke"


Let me guess...ummm...Enron


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## steve41

Well, no. It doesn't refer to the enterprise, rather it refers to the product I sell (PFP Software)


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## ssimps

steve41 said:


> Well, no. It doesn't refer to the enterprise, rather it refers to the product I sell (PFP Software)


Sorry if I should know this, but what does PFP stand for? Personal Financal planning?


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## steve41

Yes. The program is RRIFmetic (sounds like 'arithmetic') and the enterprise is Fimetrics Systems Ltd.

A tip to wannabe entrepreneurs.... think long and hard about your choice of product/company name. I wish I had.


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## Y&T2010

Live Rich Die Poor haha that's a good motto to live by!

It makes me think of that "Lotto Max" theme song. Man I love their commercials...


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## HappyCat

Short Term Goals:

1. Pay off Credit Cards.
2. START paying off Student Loans.

Long Term Goals:

1. Pay off Student Loans
2. Save up money to buy a home outright (a fixer-upper at best).
3. Marry someone who works at Forex Trading (Just kidding).


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