The following is a guest post from Ross at Cash Rebel. He’s a young engineer who writes about frugality, sustainability, and persistence. He’s aiming to reach financial independence by the age of 35.

Recently, I came across a statistic claiming only 17% of people have long-term goals, and just 3% have written those goals down. It also mentioned that those who write their goals down are five times more likely to achieve them.

A few years ago, I would have dismissed these statistics, thinking everyone had goals but struggled to achieve them. However, over the past few years, I’ve given a lot of thought to my dreams of financial independence and my aspirations for the next decade. This focus has changed my relationship with money and clarified what truly matters. I’ve also realized that many people never take the time to set long-term financial goals. Without such goals, forming a coherent, values-based action plan is challenging.

Where do you see yourself in 10 years?
Although it’s a common interview question, it’s a valuable exercise to revisit occasionally. I graduated from engineering school about three years ago and have been working in environmental sustainability since then. I enjoy it, but it’s not what I want to do forever. In 10 years, I hope to transition from my full-time job to focus on either raising a family, being a high school science teacher, or running an environmental non-profit.

I aim to have a net worth of around $700K invested in stocks, bonds, and real estate, generating an annual safe withdrawal rate of $28,000, which is 22% more than my current living expenses. I plan to achieve this by saving over 50% of my salary each year and investing in diversified index funds and real estate. I have a detailed spreadsheet to track my goals and have exceeded my financial expectations for the first two years. Although there are many ways this plan could fail or my priorities might change, having a goal and actionable steps has made all the difference.

The decisions I’ve made so far
My goal of financial independence has influenced several key areas of my life. These individual choices may not be drastic on their own, but together, they have had a significant impact.

My Housing Choice: I live in a modest apartment in the north side of Chicago with a roommate. Although I could afford a more upscale place in a trendy neighborhood, I chose to save money for financial independence instead of higher rent. Some friends prioritize living in the best areas and spend large portions of their income on rent or mortgages, but my financial goals have helped me resist that temptation.

Driving Is Soul-Crushing: I used to commute 30 miles each way in heavy traffic, which was both time-consuming and costly. After reassessing my priorities, I realized that driving didn’t fit with my long-term goals. Now, I commute by train and bike or walk everywhere else, reducing my driving significantly. Meanwhile, friends upgrade their cars and incur more debt, but I’m saving both time and money.

Don’t Try to Beat the Markets: Before focusing on financial independence, I viewed the stock market like a casino, thinking the odds were against me. After educating myself, I learned that index fund investing is a reasonably safe way to grow wealth long-term. Instead of trying to pick stock market winners, I now consistently invest in the whole market over time.

Shopping: Reviewing my spending habits on Mint.com revealed that I used to make impulsive purchases without a second thought. Since prioritizing long-term financial goals, I’ve cut my shopping allowance by 62% without noticing a decrease in my quality of life. This simple change has streamlined my spending.

Enjoying Life: I once believed that buying things made me happy, but now I realize there’s little correlation between purchases and long-term happiness. I now focus more on free activities like spending time outdoors, laughing with friends, enjoying nature, and staying healthy. These activities increase my happiness without costing much.

Is that enough?
Is having a somewhat ambiguous financial independence goal and a 10-year action plan sufficient? Only time will tell. Even if I don’t reach complete financial independence by 35, I will have established passive income streams, reduced unnecessary spending, and focused on what truly makes me happy. That doesn’t sound like failure to me.

Many people set ambitious financial goals but fail due to burnout or lack of follow-through. However, many have succeeded and shared their stories, inspiring me to try. By setting large, ambitious goals and writing them down, I’ve not only created a game plan but also increased my chances of success significantly.

What long-term goals have you set and written down? What goals remain unrecorded that you still wish to achieve?