Varied parameter
Saving rate
5% → 25%
Saving Rate Comparison
Freelancer / Contractor in Cluj-Napoca · A volatile financial ride
This page compares financial outcomes for a Freelancer / Contractor living in Cluj-Napoca, Romania, following the A volatile financial ride life scenario.
A highly unstable financial path combining income uncertainty, market swings, and repeated adverse events. Outcomes range widely, from recovery and growth to prolonged stagnation.
Cluj-Napoca combines strong tech opportunities with a high quality of life.
The comparison focuses on how changing the Saving rate influences long-term results, while all other assumptions remain constant.
Simulation Overview
Base scenario assumptions
- The simulation starts at age 30 and runs until age 65.
- The initial annual labor income is €21,780.
- Labor income grows annually at an average rate of 4%.
- A labor income tax rate of 10% is applied to gross earnings.
- The saving rate varies between 5% and 25%.
- Minimum annual living expenses are €10,350.
- Savings are invested with stochastic annual returns.
- The average annual return is 5%, 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, health issue, 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.
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Scenario Comparison
Results are shown as a realistic range. P10 represents a pessimistic outcome, while P90 represents an optimistic outcome. Most simulations fall between these two values.
| Scenario | Median Net Worth | P10 Net Worth | P90 Net Worth | FI Probability | FI Median Age |
|---|---|---|---|---|---|
| 5% | 45,436 | 3,733 | 131,729 | 2% | 62 |
| 10% | 148,339 | 72,175 | 339,233 | 21% | 61 |
| 15% | 263,540 | 137,199 | 548,248 | 56% | 59 |
| 20% | 372,952 | 190,269 | 757,405 | 80% | 57 |
| 25% | 486,690 | 246,118 | 963,222 | 92% | 55 |
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
