Financial Samurai 2023 Goals for Simplified Living

As we kick off a new year, it's common to reflect on what we want to achieve in the coming months. Setting clear, actionable goals not only keeps us accountable but also adds an invigorating challenge to our lives. This year, I’m excited to share my personal goals for 2023, organized into vital categories: Health, Wealth, Family, Financial Samurai, and X-Factor. My aspiration is to successfully reach 70% of these objectives, creating a fulfilling and balanced year ahead.

Health objectives for 2023: Embracing a maintenance mindset

Instead of striving for drastic weight loss or radical fitness transformations, my primary health goal for this year is to focus on maintenance. Here’s how I plan to do that:

1) Maintain my current weight

This year, my target is to maintain a weight range between 167-168 pounds, which I feel comfortable with. Instead of fixating on losing pounds, I’ll engage in physical activities like tennis or pickleball four times a week, which will naturally enhance my fitness and mental well-being.

2) Avoid injuries

As I navigate my 40s, I recognize the importance of listening to my body. While my enthusiasm sometimes outpaces my physical capabilities, I’m committed to injury prevention. To achieve this, I plan to:

• Stretch for five minutes before and after each match.
• Make foam rolling a regular practice to ease muscle tension.
• Enjoy regular hot tub soaks on off days.
• Incorporate elastic band exercises for shoulder strength four times a week.

Staying injury-free is crucial, especially with young children at home. Activities like tossing them around in play require healthy joints and muscles.

Wealth objectives for 2023: Navigating a flat market

In the evolving landscape of financial markets, my focus is on preserving wealth rather than chasing aggressive growth. Here are my goals:

1) Adhere to the first rule of financial independence: never lose money

Given the current market fluctuations, I estimate a 40% chance that the S&P 500 will end the year in the range of 4,000 to 4,250. However, I foresee a 60% likelihood of a decline, potentially dropping below 3,500. With approximately 30% of my net worth tied to public equities, this decline could equate to a 3% decrease in my overall wealth.

Additionally, I anticipate a median home price drop of around 8%, impacting my real estate holdings, which constitute about 50% of my net worth. Here’s a breakdown:

Ultimately, I expect my net worth to decrease by approximately 3% this year, necessitating a strategic approach to generating after-tax income to offset this shortfall.

2) Increase passive income by 5% to $400,000

To combat inflation, my goal is to expand my passive income. In 2022, my passive income jumped to ~$380,000, thanks to rising interest rates. As I look ahead, I plan to explore:

• Private real estate deals with favorable valuations and yields.
• Reinvesting a significant portion of my online income into diverse assets.
• Maintaining a focus on cash flow over net worth.

By mid-2023, I anticipate a more favorable environment for real estate investments, which should contribute to my passive income growth.

3) Boost annual spending by 20%

In 2022, my after-tax spending was around $240,000, equating to $320,000 in passive income. This year, I plan to increase spending by $48,000, reaching a total of $288,000. Here's what this additional spending might cover:

• $5,000 for donations to charitable causes.
• $12,000 on gourmet food experiences.
• $10,000 on upgraded travel for family visits.
• $12,000 on memorable family vacations.
• $5,000 for childcare expenses.
• $4,000 on gifts for loved ones.

While this increase may seem significant, it reflects a proactive approach to enjoying life while facing economic uncertainties.

4) Resist real estate FOMO

With potential housing market shifts, it’s essential to avoid the urge to upgrade my home for the sake of appearances. The temptation can be strong, especially during times of market volatility. Instead, my focus will be on:

• Diversifying my investments rather than increasing concentration risk.
• Staying patient in a market with high mortgage rates.
• Investing in Treasury bonds that offer better returns without the hassle of property management.

Family objectives for 2023

Family is central to my life, and my goals reflect a commitment to nurturing relationships with my children and parents. Here’s my plan:

1) Spend quality time with my daughter

Recognizing that my engagement with my daughter has waned, my goal is to prioritize our time together. I aim to spend two hours each morning, two hours in the afternoon, and 30 minutes in the evening with her. This structured approach will foster a strong bond and create lasting memories.

2) Visit my parents twice

With my parents living in Honolulu, I recognize the importance of maintaining our connection. My plan includes:

• Convincing them to visit us for a week.
• Flying out to see them at least once, possibly taking the kids for their first airplane experience.

3) Teach my son how to swim

Teaching my son to swim is essential for his safety and confidence. While private lessons can be costly, I’m committed to finding ways to facilitate this learning, whether through lessons at Lake Tahoe or more accessible group sessions.

4) Align parenting styles with my spouse

To create a balanced approach to parenting, it’s crucial for my wife and me to align our styles. By recognizing our differences—my tendency toward tough love and her gentler methods—we can work together to support our children's development. It’s important to nurture resilience while also providing a supportive environment.

Financial Samurai goals for 2023: Fostering creative expression

As I continue to develop my online presence, I have set specific goals to enhance my work:

1) Publish consistently

I’ve committed to publishing three articles weekly instead of four, allowing me to focus on quality over quantity. This year, I’ll balance my workload between blog posts and newsletters.

2) Write shorter, more impactful posts

In response to changing reading habits, my aim is to produce shorter articles that engage a younger audience. This adjustment will streamline my writing process and lighten the load for my editorial team.

3) Record more podcast episodes

I plan to record at least 30 additional podcast episodes, utilizing my commute as an opportunity to capture fresh ideas and connect with my audience in a meaningful way. This practice not only enhances my communication skills but also creates a lasting legacy for my children.

X-factor goals for 2023: Pursuing passions

Embracing the unexpected can lead to enriching experiences. Here are my X-factor goals:

1) Elevate my pickleball game

I’m keen to advance to a 4.5-level pickleball player, setting the stage for future competitions. This sport brings me joy and a sense of community, and I aspire to make it a lifelong pursuit.

2) Write another book

After the success of my previous books, I aim to tackle a new writing project that inspires others. The joy of creating something meaningful is unparalleled, and I want to share my insights on financial independence.

3) Cultivate new friendships

As adulthood often complicates socializing, I’m committed to forging new friendships through school and sports. Building a supportive network is vital for personal happiness.

4) Consider re-entering the workforce

With my daughter's increased independence, I’m contemplating the possibility of taking on a full-time job again. It’s a challenge to stay in the retirement mindset when new opportunities arise.

A simple life for 2023: Prioritizing what matters

As the year unfolds with economic uncertainties, I’m dedicated to simplifying my life and embracing joy through family and personal endeavors. The intersection of early retirement and minimalism offers a pathway to deeper satisfaction.

Instead of stressing over financial gains during turbulent times, I’ll focus on enjoying the present. The return on effort diminishes in a challenging market, prompting me to allocate my time wisely.

As I look forward to the year ahead, I aim to cherish every moment with loved ones while remaining open to new opportunities for growth and happiness.

Reader questions and recommendations

As we embark on this journey together, I encourage you to reflect on your goals for 2023. What are your aspirations, and how do you plan to achieve them?

For those seeking to enhance their financial management, I recommend checking out Empower (formerly Personal Capital), an excellent tool for tracking investments and managing finances effectively.

Start your year with purpose by exploring my book, Buy This, Not That, which offers valuable insights for making informed investment decisions.

For more in-depth personal finance content, join over 60,000 subscribers in the Financial Samurai newsletter. Together, let’s make 2023 a year of growth, joy, and connection.

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