Varied parameter
Saving rate
5% → 25%
Saving Rate Comparison
Freelancer / Contractor in Madrid · Fast-track independence
This page compares financial outcomes for a Freelancer / Contractor living in Madrid, Spain, following the Fast-track independence life scenario.
A high-intensity saving and investing strategy aimed at reaching financial independence as early as possible. Strong outcomes require discipline, sacrifice, and tolerance for market risk.
Madrid concentrates many higher-paying roles and business opportunities, with a correspondingly higher urban cost structure.
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 €20,570.
- Labor income grows annually at an average rate of 4%.
- A labor income tax rate of 30% is applied to gross earnings.
- The saving rate varies between 5% and 25%.
- Minimum annual living expenses are €14,160.
- 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 2%.
- 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.
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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% | 81,839 | 44,728 | 140,666 | 0% | 64 |
| 10% | 189,287 | 119,431 | 305,159 | 4% | 63 |
| 15% | 290,458 | 190,832 | 455,501 | 31% | 63 |
| 20% | 384,577 | 253,300 | 602,488 | 61% | 61 |
| 25% | 471,594 | 310,773 | 728,062 | 84% | 60 |
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
