Varied parameter
Saving rate
5% → 25%
Saving Rate Comparison
Freelancer / Contractor in Madrid · Independent and uneven
This page compares financial outcomes for a Freelancer / Contractor living in Madrid, Spain, following the Independent and uneven life scenario.
A non-linear income path shaped by project-based work, variability, and self-managed risk. Flexibility is high, but consistency must be actively created rather than assumed.
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 5%, 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% | 69,778 | 39,507 | 117,695 | 0% | — |
| 10% | 160,797 | 103,768 | 252,640 | 2% | 63 |
| 15% | 246,402 | 163,357 | 384,581 | 15% | 63 |
| 20% | 327,156 | 216,797 | 502,166 | 43% | 62 |
| 25% | 400,526 | 267,959 | 611,053 | 67% | 61 |
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
