2014 Goals Reviewed

Goals5The year of 2014 was amazing in so many ways. On the professional level, I took the leap necessary to pursue my passion for writing, taking on blogging and freelancing full-time while leaving my traditional job in the auto industry far behind. Looking at my personal life, I got engaged to my long-time girlfriend, Claudia. And financially, I moved even closer to my overarching goal of financial independence by 40 years old.

But that overarching goal is much easier to track and progress toward if I’m setting annual goals all along the way. And I don’t just blindly set goals based on irrelevant criteria. I set SMART goals every year and then follow up on those goals the following year to see how I did, so that’s what I’m doing today.

Below, I’m going to review each of the four goals I set for myself at the beginning of 2014 to see how I did, which will also help with setting goals for 2015. This keeps me honest and on track for the bigger picture.

Goal #1 – Receive $5,200 In Dividends During The Year Of 2014

This is probably the most important goal of all, as my ability to generate enough dividend income by the time I’m 40 years old will dictate exactly how financially independent I really am.

I can report with great pride that I absolutely knocked this goal out of the park. I ended the year of 2014 with a total of $5,721.60 in total dividend income. That number even counts all foreign dividend taxes that were withheld, so this number is actually a bit low since I’ll recoup all of that foreign tax as a dollar-for-dollar credit when I do my taxes this year. However, I count only the cash flow that actually hits my pocket at the time and the foreign withholding is really only a few dollars anyway.

I’m currently 32 years old and my long-term goal is to generate $18,000 in annual dividend income in eight years. Considering I started this journey as I turned 28 years old, I’m four years into a 12-year journey. So I’m on pace here, especially considering that the dividend income should grow faster as the base becomes larger.

This is a PASS.

Goal #2 – Save 50% Of My Net Income In 2014, Averaged Monthly

I knew this was going to be a goal that I was going to have a difficult time with once I decided to leave my job in the auto industry paying more than $50,000 annually. But if there’s anything I’ve tried to convey over the last few years, it’s that life is more than money. If I wanted the most amount of money, I certainly wouldn’t be aiming to become financially independent at 40. I’d just try to climb the corporate ladder until I was in my 60s. But I want time, not money. And the move I made to write full-time was staying true to myself in that regard.

Working from home comes with benefits and drawbacks, like anything else. I’ve taken a hit to the income, which is a drawback. With that said, I came short here. I ended the year with a 44.3% savings rate, which is the lowest rate I’ve achieved since 2009.

I’m hoping to get back to the 50%+ savings rate mark in 2015, but it’ll be difficult. I’m facing an uphill battle with a lower income base as well as the fact that I’ll likely owe a hefty sum for taxes due to the fact that my quarterly estimated taxes last year were not enough to cover my liability. However, I’m a fighter and I’ll continue to march toward financial independence with as much gusto as ever.

This is a FAIL.

Goal #3 – Maintain A Weight Of Less Than 180 Pounds During 2014

There’s always a method behind my madness. 180 pounds isn’t a number I pulled out of the thin air, just like the dividend income and savings goals intertwine with my long-term, overarching goal. The same with my weight. 180 pounds is right on the border for a healthy body mass index, but I do account for the fact that I probably carry more muscle on my frame than the average male of my age and height.

I do have to admit that I cheated a bit here, though not on purpose. I actually decided to take a quick break from my consistent exercise routine right around Thanksgiving. I was just burned out and my weight was about 175 pounds at the time. So I figured I could take a couple of weeks off. Well, I did take that time off. Unfortunately, I also ended up catching a particularly nasty case of bronchitis before Christmas and I’ve been sick ever since. I didn’t get a chance to weigh myself until the first week of January. I came in at 179 pounds.

Fitness is, in my mind, a huge aspect of this journey. It’d be hard to fully enjoy financial independence and take advantage of all of the possibilities if you’re in poor health. I think that’s what’s so attractive about being able to retire early in life. Who wants to finally have ownership of their time and be free in their late 60s if they’re perhaps too old to fully enjoy it? I’m hoping to overcome the bronchitis pretty soon here and get back to working out regularly.

This is a PASS.

Goal #4 – Earn $12,000 During The Year From Online Income

I had the thought of leaving the job at the dealership as early as the middle of 2013, but the opportunity just wasn’t there. I knew I had to increase other sources of income, especially income from writing. And I felt $12,000, or $1,000 per month, would be a huge step toward that.

Well, I knocked this goal out of the park. I mean I actually knocked it into the next city. I ended up earning $29,909 in online income this year. That’s just huge, especially considering that I only spent the past seven months tackling it full-time. Of course, I’ve been writing for almost four years now, so this didn’t happen overnight. Quite the contrary, as I worked 17-hour days for years, between my day job and blogging.

This goal, however, wasn’t specific enough. I didn’t specify whether it should be gross or net, or how expenses would factor into that. Either way, there was such a margin of safety that any way you slice it, the goal was exceeded. But I do plan to list a more specific goal relating to online income this year. I also believe 2014’s income is inflated because my quarterly estimated taxes were set up before I was making so much, so I wasn’t paying enough in taxes to cover my liability toward the latter part of the year. But I’m going to be far more conservative with estimated taxes in 2015, so the online income should be much more accurate.

This is a PASS.

Conclusion

I went three for four this year, which I actually consider a success. I think each one of these goals is challenging on an individual level, but all of them working together amounts to climbing a mountain. But I’m an enthusiastic climber, so coming up a bit short of the peak is a bit frustrating. However, I still had a great year on all fronts, and being closer to financial independence in a big way is a win. Not only is the dividend income now almost 1/3 of the final amount I think I’ll eventually need to live off of, but I’m now working on my terms and setting my own schedule. I have ownership over a lot more of my time than I did just a year ago, which is just a wonderful preview of what I imagine financial independence will ultimately look like.

I actually plan on discussing what my schedule looks like these days, which I hope will give you readers some insight on what writing for a living looks like, as well as what financial independence might look like to some degree. Meanwhile, I’ll also be posting my 2015 goals very soon, which will be somewhat similar to the goals for 2014, but all of them will properly advance me even closer to where I ultimately want to be. So please stay tuned for that.

I hope you all had a great 2014 in regards to your goals. I believe every day, week, month, and year is another opportunity. It’s a chance to grow and further ourselves along. Let’s keep taking advantage of those opportunities every single day!

Thank you all for your support of Dividend Mantra over the last year. I’m blessed to be a part of this great community. To be able to inspire others toward their dreams is an amazing position to be in, and I hope to continue doing this for many years to come. If you keep reading, I’ll keep writing.

How did your goals turn out this year? Did you hit all of them? Any you want to improve on for 2015?

Thanks for reading.

Photo Credit: Stuart Miles/FreeDigitalPhotos.net

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103 Comments

  1. I’m always interested in seeing how you’re progressing on the financial front, but honestly what I’m most happy for you about is seeing you get engaged to Claudia and pursuing your writing career. Wishing you all the best in the coming year.

  2. Congratulations on all the achievement, DM. Your journey continues to be an inspiration to a lot of folks out there. Keep up the great work!

    R2R

  3. Mantra,

    Great JOB!!! You did knock it into the next city or even state by that means, over 150% times what you thought you were going to earn in online income is phenomenal.

    Additionally, $6K for an $18K goal… I think you hit it on the money – as your pot gets larger, you will no doubt beat this in another 8 years. Very excited to see what your egg/portfolio and the growth rate does to your income this year alone. Should be quite telling. You had $3.9K last year with $5.8K this year. I am going on a limb to say you may be 40% there by end of this year; give or take 3%… haha but why should I guess – we shall see you goals soon enough.

    Ever think about the possibility of tax rate changes on dividend income? I know it almost happened 2 years ago, but wasn’t sure on your stance if we may have another potential chance of a higher tax rate on div income. Would that change your viewpoint on our journey? Curious as always!

    Thanks DM and great job cruising – your savings rate will be back up in no time, especially after your income begins to increase more from online as well.

    -Lanny

  4. 6k per year will be exciting! There’s something nice about an even 5 hundos per month (on average, anyway) hitting your brokerage account. Given your recent number, even after a little churn in the portfolio, I don’t see it taking very long to get there.

    I probably need to write out some more SMART goals myself. Up until now, I have been mostly budget focused (i.e. save/invest $xx per month) and do believe it’s a good barometer to make sure I’m staying on track. After all, anything I don’t spend gets invested somewhere except for what I keep in cash savings and for any upcoming expenditures. I have been expanding my realm of investments (higher growth and lower yield than before) so I want to avoid setting an income target since that is easy to “game” if I start falling behind. I’d rather simply focus on making prudent investments as the market and my budget allow and let the chips fall where they may. So long as I’m happy with the progress, no need to get too picky about that.

    We shall see. Hopefully the market doesn’t leap ahead so much. I’d love to see the Dow settle in the 16.x range once again!

  5. It was a great for you, Jason. I followed your journey closely. Concerning the one goal you didn’t meet (save 50% of income), I think the word “FAIL” is incorrect. It has too much negativity associated with it. Look at it this way – you achieved 44.3/50 = 88.6% of that goal. That’s a strong B+, brother!

    I’ve followed your lead and set some 2015 goals of my own:

    1) Bike to work 100+ days
    2) Volunteer 50+ hours
    3) Meditate 100+ times

    Good luck to us both!
    Josh

  6. Stoic,

    Thanks, man. I agree. The financial goals are, at this point, kind of on autopilot. The habits that got me here are so ingrained in my life that I just automatically save and invest. The goals keep me honest, of course.

    But it’s the personal stuff that really makes the journey worth traveling, like it makes life worth living. The money buys time. And time buys us the opportunity to do what we want with our lives. Ultimately it is then what we do with our lives that matters most.

    Looking forward to seeing us both prosper, grow, succeed, and become better over the coming year and beyond! 🙂

    Best wishes.

  7. R2R,

    Thanks a lot. I hope it continues to inspire. That’s why I continue to write and share. 🙂

    Keep up the great work over on your end as well!

    Best regards.

  8. Lanny,

    Thank you!

    The online income was a big surprise, to say the least. But I’m so incredibly thrilled that all of that hard work is culminating into what you now see. I can only hope that I’m able to keep it up. 🙂

    It’s funny, but I don’t worry even one iota about tax rate changes. The way I look at it is this: Even if the tax rate on qualified dividends goes away and dividends are taxed at ordinary income levels, those of us looking to live off of our dividend income are likely going to be in low tax brackets anyway. Now, my situation is a bit gray right now because I’m not sure to what level I’ll be blogging when I’m 40. But $18,000 of dividend income isn’t going to be taxed at a high level no matter what.

    Appreciate all the support. I’m hoping for the best for all of throughout 2015 and beyond. Let’s keep it rolling! 🙂

    Take care.

  9. Ravi,

    I hear you there on gaming the system. I don’t think I’ve ever done that, though I suppose trying to hit a goal does weigh on you. My dividend income goals are more interrelated to my long-term goal of $18,000 more than some kind of target I *must* hit by the end of the year. So there isn’t a ton of pressure there for me. Even if I miss a dividend income goal by $100, it will make very little or no difference to what I’m really ultimately trying to achieve.

    We’ll see what we get. I’d also love to see the DJIA hit 16,000 and stay there for a while. I still remember when people thought the market was going a little crazy when it crossed 12,000. I’d love to see that now.

    Best of luck throughout 2015!

    Cheers.

  10. Josh,

    Yeah, you’re really right about that. I suppose it’s tough for me to grade it like that because it’s a quantitative goal. But you are right in that it’s not a fail in absolute terms, only relative. It’s still a great accomplishment, and that’s what I was alluding to at the end there.

    Those are some great goals there. Very admirable. I especially like the goal on volunteering. I’m not sure when that’s going to factor in for me, but philanthropy is something that sits in the back of my mind. One day…

    Good luck to us both, indeed! 🙂

    Best wishes.

  11. Josh,

    Thank you very much. I’m certainly proud of how far I’ve come. I know deep in my heart there were a couple of missed opportunities along the way, but I also know I could have done A LOT worse. All in all, I’m on pace for what I want and I’m in a position now where ownership of my time is actually possible. I’m blessed and incredibly grateful. 🙂

    I wish you the best with your own Freedom Fund over there, as well as all of your other goals.

    Best regards.

  12. I would say I managed to achieve some of my goals, took 2 international trips, started my graduate degree, sold and bought a rental home, on the portfolio side my target was 100k but only managed 85k Congrats on your goals achieved!!!
    Dividend mom

  13. Congrats on meeting most of your goals. When you put your goals out there for the world to see, it makes you work more harder towards the goals. In terms of online income, keep doing what you are doing, and the rewards will follow. These rewards will be even more online income, and therefore more dividend income. You might get the title one of these days, “The oracle of Sarasota, Florida”. Derek Foster had a similar title put on him years ago, which was like “the Wise Man of Wasago Beach

  14. Hi Jason,

    Congrats on achieving major goals in 2014! Achieving ~45% saving rate is nothing to sneeze about 🙂 its a home run, especially with online passive income hitting it to another planet! All the best for 2015 goals.

    Best,
    PIM

  15. Awesome year indeed — you absolutely crushed it! I just want to say congrats with everything, and it’s well deserved. I’ve been following your journey for a few years now, and you’ve definitely come a long, long ways.

    Nice to also see what’s possible with blogging/freelancing. I hadn’t given it much thought before, but perhaps it’s an avenue I need to look closer into as a possible pretirement career… I already do it for fun anyway so why not? I’ll need your help in figuring what’s possible. $1000/month sounds like a dream right now… 🙂

    All the best!

  16. Congrats! It is always great to look back at what you have accomplished and what you have not, and reset your goals accordingly, if necessary, and also along with new ones. Your report cards always inspire and motivate rookies like me (yes, I wrote a couple of times previously as Dividend Rookie, if you remember me). I wish I were younger (since we all know the power of compounding) but better late than never, so here I am focusing on my portion of frugal living and early retirement. My dividend investing journey has been only just over 8 months with my first dividend oriented stock PG. Since then, it has grown into a portfolio of 30 stocks, and it is truly an exciting time to watch the dividend income grow. Not a lot yet, but it is an accomplishment that when I look at this time last year, and I had no dividend income then. I’ve decided to make bigger adjustments this year so that I can save more. We will see how that goes. Thanks for sharing your insights and writing so that rookies (I don’t know if I am going to keep calling myself a rookie even after a couple of years, but surely it feels like there’s always something more to learn) like myself never stop learning. Wish you all the best and that you will accomplish more this year! I’ll be surely following your journey as my journey toward frugal living and earlier (than later) retirement progresses as well. Once again thank you, and wish all the best!

  17. Congratulations DM.

    You kicked some serious butt this year!The only one you didn’t manage to hit was hugely influenced by you taking a leap of faith into writing full time. That’s not a bad thing. Like you said, you could have had over 50% and still be at your dealership. I have no doubt you’re happier now overall, and wouldn’t change that.

    Your Dividends and online income have been incredible, and I get a huge amount of encouragement from seeing what you’ve accomplished in those areas since 2010. I’m looking forward to seeing what your 2015 goals will be now, and I wish you the best f luck with the,.

    Overall I had a great year. I hit all of my goals, some of them easily, and I want push the boat out and aim a lot higher in 2015. I’ve broken my annual goals into 6 month, 3 month, and 1 month sections, and I’m tracking them on a weekly basis. The new process is working like a dream at the moment, and I feel more motivated than ever. I’m hoping to make a big step forward in 2015, and if I don’t hit the goals but get close to them, I’ll be pleased.

    Here’s to 2015!

    Huw

  18. Jason,

    Congratulations on what was an amazing and inspiring year of great change! I think we all knew you’d hit your dividend goals, so we’re looking forward to seeing the 2015 targets.

    Re your health, exercise is so important to the immune system, so it’s no surprise you got sick right after you stopped your usual routine. I used to suffer a lot in the past with bronchitis and all similar illnesses, but exercise and cutting out dairy has really helped.

    I’m really looking forward to seeing your targets for the coming year, as well as a look into what your daily routine is like. I wish you all the best for the coming year!

  19. Jason,

    Job well done! Congratulations on an excellent 2014. The progress you’ve made both financially and on a personal level are phenomenal. I think most people would take a 75% success rate for their goals any day of the week, especially considering that you only failed one goal because you decided to quit your job and started doing what you love doing.

    To me (and probably anyone else visiting your blog too) it’s incredibly encourageing and inspiring to see you do this well. Reading about your journey was one of the reasons why I started believing in my own financial independence project. So thank you for that!

    Good luck this year, I’m sure you’ll knock your goals into another city over the next one! 😉

    Best wishes,
    NMW

  20. A really solid year and amazing numbers from the new online business. Do you think in 2015 you’ll be able to increase this figure, or happy to just keep it level and focus efforts elsewhere?

  21. It’s great to see you keep yourself honest and measure your performance against your goals, but anyone who has been reading your blog this year already knows what an awesome year you’ve had, personally and financially! One of your points above about habits really stands out to me. It does seem that this investing and saving process is a rock solid habit for you, like brushing your teeth – although still much more fun of course which is great to see!

    Congrats on a great year, and hope it all continues through 2015!

    Cheers,

    Jason

  22. Congrats! You really did amazingly well in 2014–nice! It’s exciting to see you making such great progress towards your goals. And, 3 out of 4 is definitely an overall pass in my book 🙂

  23. Heck of a year Jason – three of four isn’t too bad, when your miss is primarily due to you making a leap of faith and pursuing self-employment full-time. I’d say that you’re actually further ahead than the 44% savings rate would indicate. You’re happier while having the flexibility to do as your please and set your own schedule.

    Looking forward to seeing what 2015 looks like, especially with a full year of self-employment. Of course, getting married will be the best part!

  24. Great year Jason! Considering you exchanged $50k+ for TIME and some percentage of $29k, a 44% savings rate is amazing. Call it FAIL if you want — it is SUCCESS in my view!

    You’ve had some great experiences last year, including the Michigan detour enroute to a longterm commitment to Claudia. Along the way, you’ve continued sharing your experiences with this community with your passionate and positive outlook on life.

    Congratulations, and keep it up!

  25. Congrats on 3/4, that’s pretty good. Especially considering the massive online income for the year. I think 44% is still solid given the changes you made in your life for the year. I hope 2015 brings an increase to savings rates for both of us on our journey towards financial independence.

    I would really like to see what your typical day looks like, if only to show that its not sitting back relaxing all day. You still have to hustle to get things done to write for a living (maybe even more than at a regular job).

  26. Jason,

    Killer year, my friend. You almost hit $30,000 in independent business income, which is outstanding!

    $500/month dividends is even sweeter! Together, they spell out funding for your complete financial independence within a few years. Love it.

    On another note. Thanks for spending time with me while I was down in Sarasota this past week. It’s always great talking shop.

    Best of luck to you in 2015 and you’re always welcome up in Minnesota!

  27. All the best. I am looking forward to reading your blog for years to come. Keep up the great work.

  28. DGJ,

    Thank you very much. It was a really great year in just about every respect there is. I’m happy, which is what this is mostly about anyway. 🙂

    Wishing you a great 2015 as well. I’m excited for the opportunity in front of us!

    Cheers.

  29. Dividend Mom,

    Congrats on a great year over there. How do you have any regrets when you did all of that? Sounds like a very successful 2014. I hope you have an even better 2015! 🙂

    Best regards.

  30. IP,

    That’s funny. I had no idea Derek had a nickname like that. I actually interviewed him a while back. He never mentioned it. That’s pretty neat. 🙂

    Maybe I’ll someday be known as the Sage of Sarasota? I kind of doubt it, though. Of course, I definitely don’t need a nickname. Just being blessed with being able to work from home and do what I want everyday is an amazing gift in itself. I can only hope I’m able to keep it going for a few more years, at least until the dividend income is coming close to covering expenses.

    Appreciate all the support!

    Cheers.

  31. PIM,

    Thank you. It’s tough to swallow missing a goal, but I also know that saving that much of my net income is really pushing me closer to where I want to be. The dividend income is on pace, I’m working from home, and life is just plain good. I have zero regrets. 🙂

    Wishing you the best for your 2015 goals as well. Every year, the dividend income grows, pushing us closer and closer. That means every year gets easier. Good stuff!!

    Take care.

  32. FI Fighter,

    Thanks so much. I’m certainly proud of the success thus far. To be able to put up some of these numbers is just mind-boggling to me. Sometimes I still feel like the little boy who’s trapped in a ghetto of Detroit. Life is a lot different these days. 🙂

    Writing and blogging does present unique opportunities. If you have a passion for it, then I think it’s a great way to improve the world while also being able to work from home. Of course, it was potentially easier for me to make the transition to full-time writing as my hurdle rate (my day job income) wasn’t perhaps as high as others, and certainly not what you’re able to pull down over there. I never intended to walk this journey with the advantage of a lot of income, and I’ve certainly made it even more difficult for myself with the recent pay cut. But I’m also not in as much of a hurry anymore, so it’s a wonderful trade-off.

    Thanks for dropping by!

    Best wishes.

  33. Scorpio,

    Thanks for sharing that. I love hearing personal stories, especially where there’s this massive change in mindset, which is followed by a big improvement in finances and passive income. A similar change happened for me back in late 2009/early 2010, just like it happens for most everyone else. It’s great to look back and see how far we’ve come, isn’t it? 🙂

    Sounds like you’re doing really great over there. A portfolio of 30 stocks is a fantastic progression. For some, that’s a full portfolio. The power of compounding is already working for you. We all wish we would have started earlier, but the fact that we started is good enough. Imagine if you wouldn’t have started eight months ago? Imagine having zero now. I sometimes think about that – starting all over again. And then I realize it’s not so bad after all.

    Keep up the great work over there! Wishing you all the best over the coming year and beyond as well. Stay in touch!

    Best regards.

  34. Adamn,

    Wow. We had a very similar savings rate. Still solid, though. I think most people would love to have a 44% savings rate. Great you have the match as well. 🙂

    Keep up the great work. Let’s see what we can do in 2015!

    Thanks for dropping by.

    Take care.

  35. Huw,

    Thanks, man. You’re right in that I could have exceeded 50% by staying on at the dealership, but I don’t regret the move to writing for even a second. The point of this whole journey is happiness and ownership of time, both of which are way up after the transition. Life is very good, even if I never save over 50% again for the rest of my life. 🙂

    I’m glad you find encouragement from the progress. That’s what I aim for. What’s really great is that I didn’t even make a ton of money over that time frame. So if I can go from a few hundred bucks in passive income in 2010 to almost $6,000 in 2014 – a period of just four short years – then there’s no reason why others can’t dramatically improve their lives with a little hard work and belief.

    Congrats on a great year over there. Saving almost 70% of your income is pretty incredible, and especially admirable. Keep pushing yourself and you’ll get to where you want to be quicker than you ever imagined. The world is full of opportunities and there is only a small percentage of people (like us) really going after them. Keep up the great work!

    Best wishes.

  36. M,

    That’s interesting. I didn’t think about catching bronchitis because I stopped working out. Maybe there’s something to that. Of course, I used to get it every single year for years, and that was with exercising straight through even more than I do now (I also ate better back then). So who knows.

    Thanks for the support. I’m putting together some really challenging goals for 2015. I think they’re all going to be very, very tough. The financial and professional goals will probably be my toughest yet. But I’m okay shooting for the stars and landing on the moon. Hitting even 80% of my marks for some of these goals will keep me on pace for FI by 40, which is what it’s all about.

    Wishing you guys the best throughout 2015 as well. Looking forward to seeing how the year treats us all. 🙂

    Cheers!

  37. NMW,

    Thanks for the kind words. I’m glad that the blog and my journey has that kind of effect on others. I have this huge desire to change the world by being the change I want to see, because I know you can’t really change people directly. But I feel that by chasing after my dreams, which are relatable for anyone else who dreams of financial independence, and documenting the progress along the way, I can effect positive change. And that’s a wonderful thought. 🙂

    You’re doing fantastic over there with the savings rate and investments. I always hear about how tough it is to save in Europe because of the high taxes and what not, but you’re proving everyone wrong. I’m sure you’ll keep it up throughout 2015 and put yourself in an amazing position by the end of the year. Keep it up!!

    Best regards.

  38. ERG,

    That’s a great question there. I’m hoping to increase the net slightly, but not a lot because I’m confident I’ll owe a pretty big tax bill over the next month or so. Plus, my quarterly estimated taxes are going to be more accurate to reflect my higher gross. So I’m not expecting or hoping to increase this figure all that much. Over the long haul, I’d be happy with zero growth if I’m able to get the online income to the point to where I’m able to get back to saving half of my net income. I think we sometimes get caught up with growth at all costs, but I’m quite okay with static online income while the dividend income quietly grows in the background. To be able to work from home like this and write for a living is already a dream, so I’m not really after a big improvement there. Sometimes we have to just appreciate what we already have instead of looking for more. 🙂

    Thanks for dropping by.

    Take care!

  39. Jason,

    Exactly. Like brushing your teeth, but much more fun and tangible. 🙂

    Once you create great habits, they work for you in an incredible manner. It’s just like how bad habits can systematically ruin your life. Great habits can build you up almost automatically. It’s an incredibly powerful force to build great habits.

    Appreciate the support very much. It was a wonderful 2014. I think it was by far my best year yet by just about any measure you can throw out there. I’ve had a tough go of it with some family issues, but those things are really out of my control.

    I hope you had a great 2014 as well. And I hope you have an even better 2015. We have an incredible opportunity in front of us. 🙂

    Thanks for dropping by.

    Best regards!

  40. Mrs. FW,

    Thanks for stopping by!

    Thanks for the support. I’m incredibly glad with the way 2014 went down. Looking forward to more of the same in 2015 for all of us. Also looking forward to seeing you and Mr. FW get closer to your homestead dream. 🙂

    Best wishes.

  41. W2R,

    Thanks for that. It’s reading between the lines for sure. 44% on the surface isn’t as good as 50% or 60%, but when you see what the drop comes with, it’s actually much better than the alternative. I’m certainly very, very happy with the move over to writing. Who knows if it’ll work out over the next five or ten years, but just to have the opportunity to take the leap is a real gift. I’ll enjoy it every single day that I can. 🙂

    2015 is exciting. A lot going on, besides just the saving and investing. Getting married, the Berkshire meeting, maybe even FinCon in there as well. Good stuff all the way around.

    Looking forward to what 2015 has in store for you as well. I know you’ve been mentioning that you’ll be able to put away a lot more capital this year. Your portfolio is going to swell pretty quickly here. Keep it up!

    Best wishes.

  42. Good Job there Dividend Mantra! We both reached 3 out of our 4 goals.. both missing on the expense rate, thats to bad but atleast we made big profits! Yesterday here in The Netherlands a company named Alex got in the news badly their total return last year was -11% being a leading company with high returns for a lot of years. ofcourse everyone can have a bad year! It reminds me of how good of a job we did last year in comparison with these professionals! Nice article, Keep up the good work!

  43. Ferdi,

    Haha. Thank you very much. I definitely agree. The rate is a failure in absolute and objective terms, but the short-term hit to savings is more than offset by the long-term benefit to time and happiness. Since time is money, the rate is actually much, much higher than simple math would show. 🙂

    It’s been an interesting, wild, successful, and insightful year. I’ve grown and changed for the better, and I don’t think one can ask for much more.

    Hope 2015 is just as kind to all of us as 2014 was. Keep up the great work over there. Your portfolio is growing every single month.

    Cheers!

  44. Vawt,

    I might have a hard time really improving on this savings rate much, but considering the benefit to time, it’s certainly a great trade-off. It’ll depend on how large my tax bill is, which will reduce net income. We’ll see how it goes! 🙂

    I’m excited to write about the schedule at some point here. But I’m definitely not sitting back and relaxing all day. I probably work just as hard as I ever did before, if not more so, but it’s a very different type of work. There’s a lot of fun and passion there, and it’s mostly on my own schedule. I’m blessed.

    Thanks for dropping by! I hope all is well over there. Best of luck throughout 2015!

    Cheers.

  45. Kraig,

    It was great to hang out with you, bud. Glad you were able to meet Claudia as well. Hoping I can make it up to Minnesota at some point here. 🙂

    Appreciate bouncing all the ideas around. Great to discuss this type of stuff in person with someone who “gets it”. Tough to find people in our real lives that have any interest in this.

    Keep up the great work over there. Excited to see things continue to take off for you.

    Best regards!

  46. Impressive online income! I wonder if you’ll break $40,000 in 2015? I bet you will. Maybe $45,000?

    You’re doing awesome, your portfolio is solid as can be and your dividend income will be growing for the rest of your life. It’s a great spot to be in! I admire your ability to live a simple life with only the basic necessites and possessions. It’s very apparent that having “more stuff” does not make people happier, if anything it takes up time and adds to your stress level.

  47. Well done on achieving your goals and just missing out on one! You more than made up for that miss with your online income – you didn’t just pass that one, you annihilated it! 🙂

    All the best for 2015!

  48. Congrats!
    What do you think of Ford Motors, now with dividend increase. Is it a good purchase?

    Cheers from Spain!

  49. Awesome year in 2014. I hope the best for you in 2015. Two questions.

    1) I know you didn’t hit your savings rate in 2014 due to lessened Income. But how did your expenses compare? Maybe controlling expenses would be a useful metric as your income becomes less predictable.

    2) are your yearly dividend goals based on expectations at the beginning of the year or part of a 12 year progression already planned that will lead you to 18,000?

  50. DDI,

    75% is still a passing grade, right? 🙂

    I guess it comes down to how much closer we are to the versions of ourselves we ultimately want to be. And I believe I made a huge leap forward toward that end in 2014, so missing the savings goal by a few percentage points really doesn’t make that much of a difference for me. But I’m also fortunate in that I’ve been pretty hardcore for a few years now, so it’s somewhat easier to let off the throttle a bit now.

    That’s a shame that company had a bad year. -11% in an up year like we had in 2013 is pretty rough. But I guess it just goes to show you that experts don’t all have all the answers. You’re probably better off managing your own money, even if you don’t have much of an interest in it. It’s not difficult to throw all of your savings into a couple of index funds and autopilot the investing. Anyone can do that.

    Thanks for dropping by!

    Best regards.

  51. EWB,

    Thanks. It was a great year for the online income. Certainly surpassed all of my expectations and then some. I think if we’re talking net, then I doubt I’ll be up to those kinds of numbers this year. Perhaps in 2016, however. I’d be happy if I net $36k this year in online income, which would be a 20% improvement and also factoring in what will surely be a pretty hefty upcoming tax bill and larger estimated taxes as well.

    More stuff definitely doesn’t make us happier. The research on that has been done over and over again. So it makes no sense for me to fight nature. Once we have our basic needs met in life, things like autonomy, freedom, flexibility, and time mean a lot more to our wellness than a bigger house or nicer car. Some continue to go after the stuff, which is fine by me. No harm done. But I much prefer the things that I know have a lasting impact on my happiness.

    Thanks for all the support. Best of luck throughout 2015!!

    Cheers.

  52. Henry,

    If I can net $36,000 in online income this year, I’ll be very happy. If I didn’t have some tax liabilities, I think I could do better. But $36k still gets me to where I want to be, so I’ll be extremely pleased with that. We’ll see how it goes. I remain as busy as ever. 🙂

    Best wishes.

  53. Weenie,

    Haha. I did annihilate it, fortunately. Feels good! 🙂

    Thanks for the kind words. Wishing you the best for the New Year as well. Excited to see how much further we are along at the end of the year!

    Best regards.

  54. Hey DM,
    Congrats on achieving your goals and I hope that you achieve the goal that you missed this year, next year!
    I just started our as DGI last year sometime in Feb and till Dec 2014 i earned around $490 in Dividends(15-20) all of which were re-invested back(well, not all as Scottrade doesn’t buy fraction of the stocks), but sometime this year that cash in Flexible reinvestment account will be used to buy more(new) stocks.

    What % increase should I be looking at in dividend income? Is like 10% or 20%? I know it depends on how much quality dividend stocks i buy this year.But is 50-80% realistic growth on last years dividend?

  55. Javi,

    I’m not a big fan of auto manufacturers, in general. Extremely competitive, fragmented market, capital intensive, and low margins. Just not a great industry. I see no reason to invest there when there are so many other industries/companies with lengthy records of excellent profitability and dividend growth.

    Take care!

  56. Jordan,

    1. Good question. My expenses appear to be up overall, but I’m also lumping in my business expenses there with personal expenses as a complete picture of cash flow. Some people would subtract out the costs of hosting off the gross online income, but I think this is a more accurate reflection of pure cash flow. I also had to amortize a car purchase over the course of this year. But I think, looking forward and over the long term, the expenses are still at a good baseline. I don’t really think there’s a lot of room for improvement there without sacrificing quality of life. I think the expenses offer a great balance of frugality and quality of life right now.

    2. Well, I’ve had to modify that. At first, they were based around the long-term progression. However, I’m actually ahead of where I thought I’d be, so I had to modify my annual goals (increase them) to factor that in. Assuming that compounding will take over quite a bit toward the latter end of the journey, I’m actually about a year ahead of schedule. Of course, I’ve also potentially taken a hit to income. I think it’ll balance out. But I’m setting these annual goals based on what I received the following year, what I think I’ll be able to invest in the current year, as well as dividend increases and reinvested dividends.

    I hope that helps!

    Cheers.

  57. Looks like you had a fantastic 2014. Really appreciate you sharing your personal experiences in 2014. 2015 should be a great year!

  58. Looks like you will have to keep writing because I’m going to keep reading! 3 out of 4 is pretty good especially since your happiness level is through the roof and that’s the reasoning you failed at the 4th. I look forward to hearing your 2015 goals. I really want to hear about the dividend income goal and the online income goal. Good luck in 2015.

  59. Abhi,

    Congrats to you as well. Sounds like you’re off to a fantastic start over there! 🙂

    As far as dividend growth goes, it largely depends on how much fresh capital you’re adding right now. I anticipate 10% growth as a baseline, based on dividend raises and reinvested income. Somewhere about there. The rest will be from fresh capital. Starting from a low base like that, the growth in percentage terms should be pretty large for you, but the new investments you’re making will by far make the bigger difference. Once you’re further along in the journey, the snowball will start to roll away from you and the dividend raises/reinvested dividends will start to have a bigger effect.

    Best regards!

  60. YOLO,

    Thank you. It was indeed a great year on multiple fronts. I’m blessed in so many ways, not the least of which is being a part of this great community. 🙂

    Wishing you a prosperous 2015!

    Cheers.

  61. ADD,

    I appreciate the readership! 🙂

    The new goals for 2015 should come out later this week. Excited to put forth some really challenging stuff. It’s going to be a tough year out of the gate with no W-2 income, but I’m looking forward to taking on that challenge and enjoying it all the way long.

    Thanks for dropping by.

    Best wishes!

  62. You totally nailed most of your goals. I wouldn’t be too bummed out about lower than projected savings rate. At 44.3% this is a very respectable number, especially considering you quite your job and became a full time writer.

  63. I’ve never really thought about having “SMART” goals as far as finances are concerned. I use SMART goals in my professional life, so it is not new to me. THANK YOU for opening up my eyes to using this tool for other aspects of my life.

  64. Awesome year Jason….i am so happy for you….moving forward with Claudia and living with your blogging income are two wonderful achievements….All the best and keep inspiring us !
    LTI

  65. Fritz,

    Glad you found some value in the post. The SMART system is great for all aspects of our lives, but especially in relation to setting financial goals. 🙂

    Thanks for dropping by!

    Cheers.

  66. LTI,

    Thank you so much. The support in this community is really wonderful. Appreciate that! 🙂

    I hope 2015 is an even better year for all of us. 2014 will be pretty tough to surpass, but I’m excited for more opportunities ahead. Let’s keep rolling those snowballs!

    Thanks for dropping by.

    Best regards.

  67. Congratulations!!!!

    Your journey has been a wonderful ride in 2014 with its own highs and lows.
    Wishing you a great year ahead … Waiting to see your 2015 goals

  68. Congrats, looks like a great year overall. It’s nice to see someone specifically mention how much time and effort was involved in making your online income. A lot of people think it can be done overnight and that is because they read numerous income reports showing a good monthly income without mentioning the time and efforts it has taken to get to that point. Well done!

  69. Hi, Dividend Mantra.
    Congrats on another solid year! Your progress is very inspiring. The snowball is really starting to pick up some nice momentum. Best wishes for a happy & healthy new year!

    Goosemann Jones
    Flight to Dividends Blog

  70. I think you did pretty damn good DM. 3/4 completed and the one you ‘failed’ is still a very good savings rate, not to mention you’ve had a lot of one time, and not necessarily planned for expenses coming your way. And I am sure once some of your monthly amortization expenses drop off you’ll start crushing your savings goals. Not to mention your actual free cash flow is higher than it shows, so you’ll be able to invest your extra cash into more dividends going forwards 🙂
    Keep up the inspiring work!

  71. I had some questions about your online income since I work from home as well. Please shoot me an email when you have some free time.

  72. shankar,

    Thanks!!

    You’re right. It was definitely been a bit of a roller coaster in 2014, which was an interesting change in comparison to the last few years. I guess I’ve gotten used to a more…linear personal life. 🙂

    Appreciate the support very much. Wishing you all the same for 2015 and all of the years ahead. A lot of opportunity ahead for those willing to take it!

    Take care.

  73. Allan,

    Thanks, man. It was my biggest year yet in a lot of ways. Writing for a living is a dream come true. I’m blessed. 🙂

    Keep up the great work over there. Congrats on an excellent December and 2014. Things are moving along pretty nicely for you!

    Thanks for dropping by.

    Best wishes.

  74. Dan,

    Absolutely. I get emails often about online income and how to grow it to these levels. And my answer is always the same: Work extremely hard for years on end. There’s no secret that I’m aware of. Maybe others are aware of shortcuts, but I’m not. I simply created a blog that didn’t exist back in early 2011 and I try to write content that I’d personally enjoy reading. I believe in this journey, the power of frugality, dividend growth investing, and the community. And everything I write, say, and do is for the benefit of those things.

    Appreciate all the support. Wishing you the best moving forward!

    Best regards.

  75. Goosemann,

    Appreciate it! The snowball’s momentum is starting to show itself now. Looking forward to the next couple of years, when dividend growth takes over a bit. That’ll show the true power of this strategy. 🙂

    Wishing you a very happy and healthy year as well. Let’s keep it rolling!

    Take care.

  76. DW,

    Thanks for the support there. I also think it was a pretty solid year, all things considered. Most of the amortization is behind me, though I also have a trip to Omaha still yet to fund. I still have to book a hotel. Plus, we’ll have expenses while we’re there. Just one of those things, but I’m sure it’ll be worth every penny. 🙂

    I hope we all have another fantastic year in 2015. Keep up the great work over there with the budgeting.

    Cheers!

  77. harsh,

    Thanks so much.

    Wishing you and yours all the best as well. Let’s hope 2015 is even better than 2014 was. And every year after that is better as well. 🙂

    Cheers!

  78. Congrats Jason on your goals !! this is amazing and inspiring !!

    I see OKE is one of your holding and its now fallen big time. I’m thinking of adding it in my roth. Will there be any kind of tax complications now or even in future ?

  79. Hey DM,

    Congratulations on an incredible year. I believe your major success in generating online income more than covered the failure to reach 50% savings rate.

    Congratulations!

    DividendVenture

  80. cxrmike,

    Thank you. I’m extremely glad that others are finding inspiration in what I’m doing. 🙂

    There’s definitely some value in the energy sector now. OKE pays qualified dividends, so there will be no issue with holding it in a Roth or any other account.

    Cheers!

  81. DV,

    Appreciate that. Though these goals are objective, I agree that the success in one category can easily outweigh a failure in another…especially when they’re somewhat of a means to an end, and that end has been somewhat accomplished.

    Thanks for all the support. Let’s see what’s possible in 2015! 🙂

    Best wishes.

  82. My goal was to pay off the loan I took out for a used car last July. I missed it but it’s ok because it was an unrealistic goal. I did make a huge dent in it though. When all is said and done I will have saved about 1100 in interest.

  83. Very interesting. What would you say are the primary risks of a DGI-strategy that you are employing? And if you were starting out today with $0, which would be your first company purchase and why?

  84. DE,

    Sounds good to me. Sometimes we miss our goals a bit, but as long as we’re getting to where we want/need to be, then that’s really what matters most. And the fact that you’re setting financial goals at all and doing your best to adhere to them puts you in very rare company. 🙂

    Keep up the great work.

    Cheers!

  85. dzogen,

    Well, the risks of dividend growth investing are much the same as investing in anything else, especially stocks. I would say risks specific to DGI would be dividend cuts, which can precede pretty dramatic collapses in stock prices. So you’re not only looking at less income if/when such an event occurs, but also less capital with which to reinvest elsewhere, if you so choose. That risk is primarily mitigated with broad diversification, however.

    As far as my first stock right now, it’d probably be PM. Seems to be a solid value, plenty of growth yet ahead, great brands, global exposure, and an attractive yield. Not much to dislike there other than the debt load. Their main risk is further government regulation, including possible plain packaging mandates.

    JNJ is another great choice, and one I started my own journey with pretty early. I just think the valuation for PM is a lot better right now.

    Hope that helps!

    Cheers.

  86. Congratulations Jason.

    44.3% savings rate is something to be proud of. And kudos on the online income this year. You are living the dream and give us normal folk someone to look up to.

    DivSaver

  87. Have you ever given thought to “a plan or strategy” in case we go into another bad bear market and there is a large drop in values of your stocks like in 2008-2009? Some companies suspended or cut their dividends. Do you have stops on your securities? Will you soldier it through and buy at the sale prices?

    I’m sure you must have come across Derek Fosters millionaire story in your travels, he retired early lived on dividends then panicked during the meltdown. Then later was upset with himself for doing so because almost all his holdings rebounded and even surpassed prior levels.

    Your holdings are getting pretty significant in value, I just wonder if you have considered personally how you would tackle that. Maybe you have already done a post on this topic and i am asking something already covered?

  88. DivSaver,

    Thanks so much. Really appreciate the support!

    It was a great year. I can only hope that 2015 is just as prosperous for me and everyone else. Plenty of opportunities still yet ahead. 🙂

    Best of luck as you continue to save and invest your way toward FI.

    Cheers!

  89. Paul,

    Well, I don’t know if I’ve ever written an article about what you’re asking specifically, and that’s because most of my content is really discussing this strategy and why market booms and crashes really don’t matter or bother me. So most of the content relating to dividend growth investing and stocks will probably answer your question.

    For instance, this article discusses your question a bit:

    https://www.dividendmantra.com/2014/10/what-have-we-really-lost/

    As far as what I would do if the market were to fall by 30% this year, I’d probably dance. And then celebrate. After that, I’d continue to buy stocks, but much more enthusiastically, as cheaper stocks come with higher yields and I’d be even closer to my goal. I definitely wouldn’t be selling anything, unless there was a fundamental problem with a specific business. Pricing doesn’t cause me to sell, however.

    Hope that helps!

    Best regards.

  90. Actually I did a Google search later on, and found your post where you actually interviewed Derek in 2013. So that answered one point and your second paragraph answers the other.

    I know a lot of people who seemingly had a solid plan in place. But when they saw $500,000 K become $250,000 K and dividends get cut and/or suspended even the toughest of us could get a little nervous. So that’s why I wondered if you had any floating target that might be set to sell or re-balance / diversify?

    Thanks for your reply

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