SMART goal for passive income

In Coaching Call #1 Leedo told me that it would make sense to refine my goal. I sat down and looked at my Monthly spending, both personal and business-wise. Oups. That’s about 2x of what I was guessing I’ll need. Good I checked. My jaw kinda dropped, when I looked at the figures of my Passive Income in June 2012. Argh.

But let’s focus on the task at hand:

What does SMART goal actually mean?

S: Specific
M: Measurable
A: Attainable
R: Realistic
T: Timed

So my goal for passive income should entail all those features. Let’s give it a try:

When I turn 30, I want to have a passive income of 4000€ per month

Specific: I need to define what passive income means. I did that in the Coaching Call #1 and said 4 hours / week would still count as passive. The 4000€ consist of both pre-tax and after-tax money, because I counted business and personal spendings. So let’s add a rough 500€ for taxes. In the last coaching call I also said that this money was gonna be gains. Given that this is much harder to track than income – let’s go for income and hope that I didn’t totally suck on the estimation of business and private spending. Ah shit. I just added another 500 bucks to business spending. Maybe the goal should be dynamic? Something like “Business earnings after tax > monthly private spending”. Let’s stick with that amount for now and build in a correction loop every month, when looking at income.

Measurable: Yes – income is pretty easy to measure. Just add up the numbers from the bank sheet.

Attainable: Yes it is, however making the goal dynamic will be a problem. I guess it’s better to collect Data until the end of the year and then set the right amount.

Realistic: Absolutely. This isn’t some hooky-spooky idea. Many people have done it. I know I got that in me. hey..but maybe I should have a anonymous survey asking my FB friends how much they make in passive income. Would be interesting…

Timed: Yup – I got 15 month to go.

So what is my final goal for now? I put it like this:

Have a passive income of 4500€ pre-tax with max. 4 hours work per week when I turn 30

 

 

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