Path to my financial independence

December 18, 2020

I thought I will write down how am I doing with reaching financial independence, to track progress and see if it is doable, or I need to do major changes. So I’ll be updating this page yearly with recent passive income that is covering my living costs. And I’ll add a short paragraph to each year, might be nice to read in retrospective 🙂

TLDR table

YearCosts increase (compared to the previous year)passive income covering costs
2021+53% (bought a flat with 20% cash)12.37%
2019+24%6,14% (10% without car)

Goal? Get passive income to 100%. And then just slowly grow it and diversify to make it safer. Looking forward to seeing how will it look like in 10/20 years!


The goal is 20% expenses coverage


Let’s set a goal. 15% costs coverage in 2021 seems a reachable value! It all depends on how I will keep my costs down.

I did not succeed, at list not in a single number. Passive income would cover 12.37%, as I bought a flat and added 20% contribution to my expenses.


Corona year. As for investing, it was a great year. I have saved a lot by not having as many abroad holidays as I used to have in previous years. Stock prices in March were extremely cheap, I bought triple the amount in March that I used to buy monthly before. I expected this sell-off will last the whole year, but unfortunately for me, it rebounded within a few months. Still, this was probably the best year I will experience in the following decade. 11.68% is an important number for 2020 – the percentage of costs covered by my passive income. After 5 years of investing, it’s not much.

But I am optimistic for a few reasons:

  1. If corona crisis does not bankrupt p2p lending platforms, I will probably invest more there. It seems to be 11% stable XIRR, which is much higher compared to dividends from stocks (3-4%).
  2. Some companies cut or suspended their dividends -> hopefully, they will put them back in the following years -> increasing my passive income.
  3. On top of my monthly deposits, reinvestments of passive impact have a greater impact than ever before. Compound interested, let’s keep it rolling!

We will see, maybe I would find real estate in 2021 and it will trim my stock investments significantly. Also in capital gains (crypto and stocks), I have made probably 150% of all my costs in 2020 -> which is great, but I am not taking profit, and it may go back down.


This year was hopefully the year when my massive increases in costs stop. I have bought a car in 2019 – it is 10 years old Honda Accord, so not that expensive, but still had a huge impact on my costs (car itself, insurance, gas, repairs, …). Overall I ended up with passive income covering 6.14%, which is horrible after over 4 years of investing. If it grew 6% every 4 years, I would get 100% of my costs covered in 62 years. And that is assuming, I will have same costs in 62 years – looking at yearly increases and inflation, unrealistic.


For P2P lending, I started with 1000 euros on bondora, which did not prove to be that profitable. I then only slowly increased my deposit, that is why it does not have that big of an impact on my passive income.

For investing, I have started with small payments in December 2015, still being a student and doing only 1 small stock purchase per month. Luckily it stuck with me and I believe after 5 years, I build up a good habit of monthly investing.

Written by Lucas03 , who uses this as diary. Contact at admin[a]