EXPENSES, NET WORTH, AND GOALS

WHERE I STAND, WHERE I AM AIMING FOR

I won’t drive you crazy with my numbers, I will try to explain in the clearest way my expenses, net worth and how far I want to go to get my ticket to FINANCIAL INDEPENDENCE. Remember that once you get to your magic number you will be able to RETIRE, the goal, and do what you want.

OBJECTIVE:

Accumulate an amount equal to 30x times your annual expenses in a diversified portfolio that can yield enough without depleting the main chunk and live off the benefits (YES, THAT’S MY MAGIC NUMBER). There are many articles that explain how to reach this amount, most experts talk about 25x times, such as, here, here or here. Even some other approaches such as this one or this other. I prefer to use 30x times to have a little more peace of mind (yes, I am also scared-excited about the R-day!).

hang in there, find your pin . . .

hang in there, find your pin . . .

NET WORTH:

As of today, I have managed to accumulate 12x times my annual spending. A LITTLE MORE THAN A THIRD OF THE WAY!

You can use these free tools to calculate your net worth.

Mint.com

Personal Capital

For me these work perfectly, and most of the bloggers I read also endorse them

(WARNING: I do NOT get any money from referrals from these companies, absolutely 0. I use these tools because I find them useful)

 

EXPENSES:

In my case, my annual expenses are equal to about 1/3 of my salary.

Yes, I live a frugal life, but I guarantee you it is full of sensations and is very satisfactory, I do not deprive myself of the things I love, yes, I value experiences over material consumption and I care tremendously about my expenses.

As you see, it is not just about investments. You also have much room for savings to make a better use of your money if you control your expenses.

 

CHEER UP! IT’S A GREAT AND HARD GOAL TO ACHIEVE, BUT THE MOTIVATION IS INTENSE, PREPARE AND EMBRACE THE LIFESTYLE!

DO NOT FORGET TO ENJOY THE JOURNEY, THE DESTINATION IS IMPORTANT, BUT THE ROAD IS FULL OF INDUCEMENTS