Being a Millionaire at the age of 43

Aiming for financial freedom does not only mean working hard and getting your personal finance in your control it also means setting ambitious goals. For me financial independence means I do not want to depend on jobs where I have to work for the success. It also means not having any debts at all. OK guys I don’t have any debts luckily but I am still working for someone else success’ because I am not creating enough passive income so far, as I mentioned here.

So I began to start making a financial long term plan when my net worth will reach the one million Euro level. It will be at the age of 49, that means in 18 years from now, I will be able to create enough passive income through shares, rental income to have a good life. The first time the passive income will be higher than my expenses will be in 12 years.

Enough of my theory of when and how I am going to be a millionaire. I will just briefly explain you my assumptions for the next 18 years per year:

Average Portfolio Investment: 21 600 EUR

Average Portfolio growth rate: 4.4%

Average dividend yield after tax: 3.8%

Average Net Salary: 48 200 EUR

Average Expenses: 20 500 EUR

Additionally, I plan to have my first rental income in 12 years with a monthly income of 700 EUR and my 2nd one in 18 years with around 750 EUR per month. So in 2034 my net worth should look like this:networth

What should I think about that?

To be honest I want to have my first million EUR earlier than what the plan says, no matter how realistic the assumptions are. So let’s come back to the title of the article, I honestly want to reach my goal in 12 years, it is quite tough because according to my plan I just would be at a net worth of around 500k EUR.

But how can I reach that? Well I see some potential in my salary even though Austria is not known to be a high income country. But this will not be my main focus as it is against my other goal not to work for the success of others. In the end I need to find an additional income stream, this  blog would be something but to be honest right now there is no income coming from it at all and to be realistic there wont be any in the next 2 to 3 years. Just way too less traffic. But it is an idea to monetize it if there is enough traffic and especially my articles will be better.

So what am I doing right now besides setting up my blog I am all the time looking for additional online income like doing microjobs, searching for other investment possibilities etc.. Right now I am reading a lot in other blogs what possibilities are out there to make more money.

But let’s come back to my long term plan, of course it is based on assumptions which might be unrealistic or too optimistic. Nevertheless and most importantly I learned to set a goal and where I want to be and I am curious and eager to reach the goal earlier than what the plan.

To sum up this leads me to a new part of my blog, beginning with October I will post my monthly Net worth development.

As a starter as of today I reached 4.52% of my goal.


How do you keep track of your net worth and have you set a similar goal?

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