Hello everyone, I’m back at it again with another blog post. Today I want to talk about the reasons why I invest and what my short-, mid- and long-term goals are. You should always know why you are investing. Different goals could come with different strategies and expectations. I strongly recommend you all to take some time and think about what all monthly contributions and sacrifices are for!
Right now I’m still living at home. This makes saving super easy and I want to take full advantage of this. Right now I’m trying to save 85%+ of what I earn. I know this could be even higher but I still want to do the occasional activity with my friends and girlfriend. I also pay for most of my food myself so this is another cost I have but I’m eating as cheap as possible!
I will probably live at home for the next 2 years. The plan right now is to start looking for a small apartment around the summer of 2022. Fingers crossed interest rates will stay at least as low as they are right now! Assuming my income stays around the same as it is right now and my investments do nothing crazy, I should be worth around €76.000. Could be more but it could also be a lot less if markets were to take a nose-dive.
Don’t give much attention to the P2P part of the forecast. That should not be in my portfolio by then. This projection does not take market fluctuations into account, only the amount I invest. As you can see I should have €33.300 in cash. Together with my girlfriend, we should easily have enough for a down-payment on an apartment worth around €250.000
When I think about mid-term goals, I’m thinking about 5-15 years into the future. I’m almost 24 years old right now and by the time I hit 30 I want to have at least €100.000 in liquid investments (not taking into account the future apartment). Some simple simulations of the mortgage show me that the loan should cost us less then €800/month. This means my part would be less then €400/month. Keeping other expenses as low as possible will make it possible to personally save and invest at least €1000/month as well.
In about 15 years, I would like my girlfriend and myself to get a bigger place to live given that by then there could be a kid as well. Renting out the first apartment could be a valuable option by then. This is something I have to look into more. I don’t know all the details that come with renting out real estate (taxes, costs, …). Maybe It is not even the best financial decision. Luckily, I still have some time to figure all this out!
Long-term goals are always a bit difficult to determine with a lot of details. My goal is to be financially free by the time I hit 50. This does not mean I want to stop working when I get there. I like working, maybe I even work a bit too much? But I just want to have to freedom to have the choice. I don’t want to think about every purchase I want to make, although this is probably just in my nature!
Investment wise I would like to have the following (keep in mind that these are rough number and a lot can change in the next 25+ years):
- €500.000 of invested capital
- 1 (or more) rented out real estate properties
- A successful side-hustle
- An even better and more successful blog than I already have (*wink*)
What are your short-, mid- and long-term goals? Do you think mine are (not) realistic? We can always start a conversation in the comments or via mail!