Saturday, February 22, 2014

So, why $100 Million? It's about the Journey!

I received a few questions from folks about my goal of reaching $100 million net worth. How did I arrive at $100 million? Why not $5 or $10 or $50 million? What is so special about $100 million. 

I think I can sum it up with a quote from Michelangelo:
"The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark."
The journey towards a goal is more interesting to me than attaining the goal itself -- and the more audacious the goal the more exciting the journey.  Let's make this journey an exciting one with a goal if $100 million in net worth!  The process of  a) establishing the goal, b) setting out a strategy to meet that goal, c) establishing plans aligned with the strategy, d) taking actions laid out in the plan and finally e) seeing your actions translate to results is exciting .  If the path to move from point 'a' to 'e' is clear and easy the journey is less interesting.  Less interesting for me and certainly less interesting for someone else to follow along and learn from the journey.  If my goal was to move from where I am today to a $5 or $10 or $20 million net worth, I have a clear path to get there.  I can continue what I have been doing and have great certainty the journey will end with my goal attained.  It might only be a matter of degree.  I might need to cut a few dollars in spending to invest more or I might need to add another rental real estate property or two.  My established plans today will get me to these less audacious goals. 

I am setting out on this journey with you to develop those plans that will take me to $100 million.  This will take exploring areas for new investment and additional ways of generating income.  I will have to learn and grow in areas that I know nothing about today.  This is where I believe you and I can learn together.  I also hope that by setting such an audacious goal and making clear progress towards reaching it that I might inspire others to start a journey of their own with a goal that they once thought impossible.

Secondly, part of my definition of financial freedom is to have the flexibility to participate in the building of exciting new businesses that will change the world.  By participation I mean venture capital funding.  To participate in a meaningful way, I believe I need to have substantial means.  $5 or $10 million might be enough to ride away into the sunset and enjoy a life of luxury but it won't be enough to enjoy a life of luxury, participate in building new ventures and go to bed each night with little to no worry. 

To recap, here is a summary of why I have chosen my net worth goal to be $100 Million:
  1. I want an audacious goal that makes this journey more exciting for me and for you to follow along.  If there is not some level of risk to attaining the goal it wouldn't be a very exciting ride.
  2. I want to have the means to substantially participate in building exciting businesses that will change the world.  To do this I believe I need more than just a few million dollars.
  3. Let's face it - $100 Million Net Worth sounds cool.
What's your goal and how did you chose it?

Until next time, happy investing!

1 comment:

  1. It's is good to set high goals, 100 million is certainly high enough. My goals is a bit lower.

    € 1 Million - age 30
    € 10 Milion - age 40

    The first million is the hardest but if I reach the 1 milion before the age of 30, I will set a higher goal for age 40.