- Keep job (pretty much the opposite of the forum objective, huh?) - believe there is a potential for me to increase my pay substantially this and next year
- Steady, monthly investments in index funds
- Locate and invest in more real estate if possible/lucrative
I am increasing index fund holdings each month and have recently started investing in real estate. I need to invest some of my cash if I want to reach my target (see outlook below).
I found it interesting how my networth fluctuates. Since I put more money in the market each month fluctuations should get even larger.
Looking towards 2030
An outlook on the cash flow I expect going forward attached below (not adjusted for expenses and taxes). If all goes well job income, dividends from stocks and real estate should increase massively from next year. Real estate investments yield quite a nice dividend (5%) compared to stocks these days (2%). The new investment will make for a nice concurrent cash flow base. Please do not pay attention to historic data as it may be slightly inaccurate.
Assumptions (increases start from 2021):
- All numbers adjusted for inflation
- Yearly pay increase: 3%
- Yearly dividend increase: 10%
- Yearly real estate income increase: 0%
- Yearly expense increase: 10%
2030 outlook - passive and job income parity
Below graph illustrates that job income and passive income will reach parity already from next year!!
Seeing above graphs makes me realize a few things...:
- My career has picked up speed this past year
- A major windfall has made the aggressive ramp up of passive income to come possible
- May not reach passive income goals next year due to aggressiveness (shooting for the stars)