Saving Rate Comparison
Freelancer / Contractor in Romania
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual income is €19,800.
- Income grows annually at an average rate of 4%.
- An income tax rate of 10% is applied to gross income.
- The saving rate varies between 5% and 25%.
- Minimum annual living expenses are €9,000.
- Savings are invested with stochastic annual returns.
- The average annual return is 6%, with year-to-year variability.
- All values are expressed in real terms, assuming average annual inflation of 3%.
- The simulation includes stochastic life events such as unemployment, and health issue.
- These events may temporarily affect income, expenses, or net worth.
- Financial independence is defined as having net worth equal to 25 times annual expenses.
- Bankruptcy is triggered if net worth remains below €0 for 2 consecutive years.
Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 5% | 151,719.635 | 96,990.057 | 237,116.906 | 14% | 63 |
| 10% | 303,439.27 | 193,980.122 | 474,233.82 | 81% | 60 |
| 15% | 455,158.895 | 290,970.179 | 711,350.726 | 98% | 55 |
| 20% | 606,878.53 | 387,960.235 | 948,467.64 | 100% | 52 |
| 25% | 758,598.165 | 484,950.301 | 1,185,584.546 | 100% | 50 |
How Your Financial Life Evolves
These charts show how each scenario affects long-term outcomes, including expected wealth, downside risk, and the likelihood of achieving financial independence.
Net Worth Median
Net Worth Range
Fi Probability
Fi Median Age
