My road to financial freedom

Everyone of us is dreaming about financial freedom and to be caught in the daily treadmill hunting from one job to another. But what does financial freedom mean to me and how can I get there. Let’s have a look at it…

Financial independence for me means that I am not depending on a monthly paycheck and that my monthly expenses are covered by passive income (in my case dividend income as I have not found any other investment possibilities so far). This does not mean that I want to quit my job as soon as I have reached the goal, to live from my passive income, it just gives me the security that when I might loose my job I am able to cover my expenses. Also it means that if I do not like my job anymore it is not a big drama if I have to find another one. I think this is different to some other personal finance bloggers.

But how can I get to this point?

In the table below you will find my plan to reach that point. Of course it is just a plan how I can get there and it may change through the years But with this plan I will never loose the focus to reach that point and according to that plan I can reach financial freedom in the year 2028. That means in 11 years from now on :). (Please click on the image to make it larger)

Financial Freedom
 When creating this plan I included the following assumptions

  • Yearly portfolio Increase: During the year investments by 3% and existing value by 5%. Of course this can vary from time to time. There will be years with a higher return and years when the portfolio will crash. But with a yearly performance of a little less than 5% I have found a good average
  • Dividend Income: On average my assumed total dividend income is at around 3.8%. Currently it is at 2.9% after tax but with yearly dividend increases the 3.8% are not unreachable and also not unrealistic.
  • Expenses: I assumed monthly expenses of around 2 000 EUR.
  • Salary: This is probably the hardestone that’s why I chose an conservative approach. Having a net salary of around 60k EUR by the age of 40 would be a little disappointing.

Please note this only covers my potential income but a little more than my (single) potentials expenses. So again concerning salary and expenses it is an conservative approach, I am definitely aiming for a better salary/expense ratio.

My current status

  • Portfolio: 47 680 EUR
  • Cash: 9 700 EUR
  • Total: 57 380 EUR
  • Full year Dividend Income: 1 260 EUR


So as you can see I still have long way to go to reach financial independence but I am sure I can do it when I stick to my plan and always to keep focus on it. Also to reach my goal until the end of the year will be challenging but we will see if I can make :). All in all a first step to reach financial independence is, to have a plan how you can get there and to set yourself mid term goals.

What does financial freedom mean to you? When do you want reach it?


  1. Financial freedom to me means the ability to do whatever I want, whenever I want. Based on my calculations that loosely translates to having $7 million in assets (whether that be in cash, real estate, bonds, stocks).
    Similar to yourself, I’m trying to achieve this goal within 10 years.

  2. I have an idea of what I would like to have to be able to live comfortably and be able to travel anywhere I wish. I am a long way away from this, but I hope within 30 years I will make it.

  3. It is great to have clear goals and to be ambitious. As you said, there are years in which the portfolio will crash due a market correction and other years where it will soar. But keep focused and things will move forward.

    PS: you didn’t consider the eventuality of getting married and having kids… big drag on savings 🙂

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