At the beginning of 2019, when I was dealing with Crypto for 10 months, I wanted to set some clear goals for myself with regard to personal finance and I figured out it was still 111 Months until I would reach the milestone age of 55 years old.
So it was time to put a target in place and check the progress. The target is very clear, Early retirement when the 111 months have expired. To make this happen, I decided to focus on three things:
- Eliminate all loans;
- Build a balanced portfolio of liquid assets;
- Create assets that generate passive income;
I created a wealth building plan to achieve a liquid wealth with the equivalent of 1,5 million USD, consisting of Private Pension, Shares Cryptocurrency. The wealth building plan assumes progressive compound interest:
Based on current circumstanses, I have simulated where the wealth would be at the end of the 111 months. As is visible, I am currently ahead of the plan, but with the current speed of accumulating wealth and the current value of cryptocurrencies, I am falling behind the plan at the beginning of 2023. Still some time to correct though.
On top of this, the passive income generated by the liquid assets should reach the level of passive income, which is 1,5 the current monthly spend on daily expenses, excluding loan repayments and wealth building as for both I would assume to have met my target by then. This passive income should be enough to live a relaxed life for me and my family without the need to use my build up wealth.
Month by month I am keeping track and after eight months, even with the big dip in the Altcoin market value occurring in July and August, I am still ahead of the progressive plan, both from wealth and passive income point of view:
The impact of loans (negative wealth) has reached 42% of total wealth and is slowly loosing importance, as I started out with loans being half of my wealth, meaning actually having a 0 liquid wealth. The value of the house, I consider non liquid and therefore is not taken into consideration.
In this process, the big unpredictable factor is the value of Cryptocurrencies as its volatility can swing the status from good to bad or vica versa in some days. This is why maintaining a healthy stock portfolio and building up a private pension fund besides the state pension are area's which need to remain in focus. In the meantime, I have established a stock plan, with six stocks in the portfolio. Three with the intent to grow in value and three which should drive passive income. The target is to have at least the same value in stocks as in cryptocurrencies.
The monthly passive income from has increased again after an a previous drop in July. The level reported on first of July still has not been reached, but it is growing again. The vast majority of passive income is generated by CITYUPTAKE returns, some returns from gambling platforms in TRON like Wink and CryptoVegas and Hungarian Zwack stocks have generated its first returns.
The value of $TRX has dropped to extreme low values in August and the hope is this will recover slightly in September, which will have an immediate impact on passive income levels.
Let's keep on building!