My FF status

This section tracks my progress towards Financial Freedom, particularly by following the growth of my passive income. Similarly to the P2P Portfolio and the at some point in time ready Stocks Portfolio sections will keep live graphs about my passive income sources. I decided to also include a very interesting initiative started by Thewealthyfinn to track the performance of us European (which technically I am not xD) FI-Bloggers, don't miss that part!

Goals

Well, the main goal is reaching Financial Freedom (eventually). And that stament I guess leads to the following question: what the heck is Financial Freedom? Chances are this means different things to different people. To me, Financial Freedom means being able to have enough passive income that allows me to decide what to do with my own time. Do I want to have a break? I take a break, do I want to travel? I travel, Do I not like my job anymore? I change my job, etc.

Setting goals is usually a crucial step towards achieving anything, and it's no different with Financial Freedom. I stated some of my goals in my Goal section, however they are rather loose at the moment. I target to be financially free by the age of 40, which is a few years down my road (about 6 years from today) so is quite a challenge. Here are some goals for the next few years to pave my way towards Financial Freedom:

• Have my passive income cover at least 5% of my current expenses by the end of 2021.
• Have my passive income cover at least 10% of my current expenses by the end of 2023.
• Have my passive income cover at least 20% of my current expenses by the end of 2025.

I understand these numbers aren't precise figures, in fact they are totally relative to my present cost of living in wherever I happen to be at the time but for the moment they are enough for me to track my progress.

As of today (July 2021), my passive income covers between 2% to 3% of my expenses, so there's a long way to go :)

State of the art

My passive income is a HUGE work in progress, at the moment (July 2021), consists of only 2 different sources. In the future I'd like to add at least one extra source, maybe some real estate? maybe income from the blog? who knows, whatever happens first :P.

Currently the main source of my passive income is a somewhat risky but high yielding portfolio of P2P loans (which you can see here). My P2P portfolio yields somewhere around 10% to 11% annually and at the moment represents 50% to 60% of my passive income. To be honest, I'm not very happy about having my riskiest assets providing more than half of my passive income xD, but this is just the beginning. That said, I don't plan to add more capital to my P2P positions at the moment, but I do re-invest the returns so the snowball machine keeps moving.

The second source of income and the one that is making me proud is dividends :), good auld dividends. My current stocks portfolio has a yield of about ~2.95% and a yield on cost of ~3.55%. I don't really own many high yielding stocks (hence the low yield), but rather focused on diversifying my positions by owning solid dividend payers and some growth dividend payers as well.

FI-European community

This is a very interesting idea driven by Thewealthyfinn trying to spark some healthy competition among the community. As soon as I saw it a few days ago I decided I wanted to join :). The graph basically tracks the passive income generated by the different bloggers in the community, plus you get to see the links to their blogs if you are interested in know how they are doing it.