Become a private person- how much money do you need to not have to work anymore

In the last days I was often asked about my goals asked. For one thing, because it’s the end of the year and many people Inspiration and look for answers.

On the other hand, because I have mentioned several different goals. Clearly, one’s own goals adapt over time. So the last few days I have been thinking about it more intensively.

The result is the goal Private at 38 years of age and never have to work again. The emphasis is on "not working anymore need" and not to "never work again".

There are many great things that I enjoy. And if, at 38, I no longer have to work to cover my material needs, then I can devote myself to the finer things (see the topic of trading time for money).

In the following section I will briefly describe, What a Privateer is. After that I will answer, what financial goal I set myself for it.

In the third section I will describe, like me this one Reach your goal and in the fourth section, how my progress and the current status is. Have fun reading and commenting on my contribution to the Privatier.

What is a privateer and does it mean never working again?

Plainly said, the privatier is a person who has the financial security achieved in life. The person has to work for cover the cost of living, I can no longer work.

He pays his expenses with passive income. This is not to be confused with financial freedom, where, in addition to covering fixed costs, you can also cover all other costs. So also fulfillment of one’s own desires such as travel, luxury goods, other assets, and so on.

So the privateer doesn’t have to work for his (excess) life for years and years. The status as a privateer has the following advantages:

advantages of being a private person:

  1. The privateer has no fears regarding the fulfillment of his basic needs
  2. The private person can freely divide and use his available time
  3. The privateer does not have a daily duty program, superiors or customers
  4. The privateer has less risk to realize himself creatively/professionally (z.B. self-employment)

From the four advantages I get the answer why it is desirable to become a privateer.

If I don’t have to worry about the job every day and whether I’m going to be laid off, then I can do a lot of sleep more peacefully.

Especially for people with poor education, as a temp or in temporary work this issue is a constant companion. And let’s be honest: If I have to worry every day whether I will have food and a roof over my head, then the quality of life extremely limited.

As a private person you don’t have to worry about this, because you have enough passive sources of income and wealth have, which do not break away overnight.

Besides, I find it very nice to be able to decide every day whether I want to sleep in and how I arrange my day. I can think about whether I have lazy, me further education, me arrange with friends, me to my to take care of my family or work on a own project work. And that motivates me immensely.

For example, last weekend (Saturday and Sunday) I spent 15 hours each on my blog worked. but I did not feel it as work. It has a lot of fun and I felt very productive.

Being a privateer you are by no means a lazy pig. You simply have the time and the freedom to spend your own projects get ahead. Because then you do things that to have fun and to create meaning. You just have to ask yourself the question "what do you do as a self-employed person"?

I am toying with the idea of devoting more time to my hobby of dancing, maybe even a dance school to found. I couldn’t do that if I had my normal salaried job. Then I have neither the time, nor the motivation to. Besides, I would always have the pressure that I would have to earn money to survive with it.

If I switch from the employee relationship to self-employment after a few years without passive income, then it must work out. If not, I am financially screwed. But if I make money passively through my assets, whether the self-employment works or not, then I have much less risk and pressure. Besides, I can do it any way I want. I have to not to be dictated by anyone.

When is someone private and how much capital is needed?

You are a privateer when living expenses cover by passive income from his assets or fortune Can. It depends very much on the Cost of living from. Thus, everyone reaches the goal after different years.

Someone who 2.000 euros per month to the life needs, can become privateer possibly earlier, than someone that 10.000 euros per month Needs.

In addition it plays a role whether one only provide for yourself or a family must. So it is important the amount of monthly income and the Amount of monthly expenses.

If these two items cover each other constantly and sustainably, then one is a privateer. Of course taxes are also counted as costs.

Surely someone can also get from Withdrawal from a fortunen live freely and call oneself a private.

But then the age, the amount of assets and the amount of withdrawal plays a role. If a 60 year old has assets of one million euros, every month he can divide 2.withdraw 500 euros.

That can he 400 months (resp. 33 years) make. So he could live as a privateer until the age of 93 years. Since he certainly does not have this money only on a 0% interest savings account, he will also receive interest on his assets and thus live even longer than until 93 years of age.

Nevertheless, for most, the asset withdrawal is not an option, they want to take out as a private individual a "infinite" passive income. Not because it makes more sense, but because you feel safer somehow.

How much money do you need to live?

Some question at what point you are considered rich and equate that with a great life. We can define rich as taking from one’s capital or one’s Passive income can live. So it is much more the question how much money you need to live and how high the assets have to be.

The amount of the assets depends strongly on, how much passive income you want to have in the month and from which sources you draw your income. If you calculate your income from Dividends on the stock market draw, then one often speaks of the 5% rule.

This is because you first have to annualize your income, then add the tax and then multiply it by the average return of your shares (for example 7% for the DAX). Here are the steps in detail:

  1. Take your monthly income that you would like to have. Example 3.500€
  2. Calculate this on the year up, thus times 12. Example 3.500 x 12 = 42.000€
  3. You have to divide the whole by 0.75 share, since you pay 25% tax on capital gains. Example: 42.000€ / 0.75 = 56.000€.
  4. You have to divide this sum by the expected yield. Example: 48.000€ / 0.07 = 800.000€

At first sight, this does not seem too much at all, if you take the correct savings rate has. Don’t nail me down on the 7% of the DAX, I don’t know so much about shares. But I think, with this calculation you can deduct from the interest resp. Dividends live.

If you want to do the whole thing with real estate, you also have to calculate backwards. For the sake of simplicity, let’s assume a paid off Portfolio from. We calculate with a rent yield of 7%, management costs of 25%, IHR reserve 10%, rent loss reserve 10% and a desired cash flow of 3.500 Euro per month

Calculate real estate portfolio for passive income:

  1. Take the 3.500 € and multiply it times 12. Results in 42.000€
  2. Take the 42.000€ and add the 20% IHR reserve and loss of rent. This gives 42.000€ / 0.8 = 52.500€
  3. Add the individual tax rate. This is about 33% here. So 52.500€ / 0.67 = 78.358.€> rounded up 78.500€
    The own tax rate is progressive and therefore more difficult to calculate. As a help you can calculate the tax rate with a reverse calculation on the page of the BMF.
  4. One calculates on this value the management costs of 25%. So 78.500€ / 0.75 = 104.666€> Rounded up 105.000€
  5. You divide this value by the rental yield. 105.000€ / 0.07 = 1.500.000€ .

How to become a privateer

Read: Tax calculator from BMF

So you need a paid off real estate assets of 1.5 million, to get a monthly cash of 3.500€ to have. This may sound much higher at first sight than the 800.000€ for the shares. But that is deceptive.

We must not forget that for the real estate we have to take into account debt financing and us the tenant the real estate paid off. We invest in real estate and do not just invest our capital.

With 100% financing throughout, we will only have to Incidental purchase costs pay. There we can as value 10% take. So we do not have to pay 1.5 million saving, but only 150.000€ and then wait the 30 years until the property is paid off.

As you can see the 150.000€ saved up five times as fast as the 800.000€ for the shares, one can redeem between by sonder and shorten the time to the paid off real estate.

As a conclusion: With real estate you become financially free much faster than with shares. But in return you have more effort in acquisition and maintenance of real estate. In any case, you have to make a financial plan and a budget plan.

What do I need in terms of income? How much do I have to save and how much to invest? And you should always keep in mind the risk.

How does the Privatier health insurance and Privatier pension insurance work??

This is a legitimate question, since you have to pay Leaving the employment have to worry about health insurance and pension insurance. So far the employer takes care of the health insurance / pension and partly paid the costs. As a privateer it is a little different.

It is easiest for those with private insurance. The remain in their insurance, but pay the full contribution. Members of the statutory health insurance can continue their insurance voluntarily. The contribution for voluntarily insured in the GKV will be based on income subject to contributions of at least 1.015€ and maximum 4.425€ per month raised.

For pension insurance, the question is even easier to answer. Since we receive our income from passive sources, which also exist at retirement age, we are no longer dependent on the pension of the pension insurance. We do not pay more here.

Certainly, one can still make one-time payments into the pension fund, but this money is guaranteed to be better off in one’s own stock portfolio or in real estate.

This is one of the main reasons why many people want to become financially free. Know that you can’t rely on the state pension and therefore prefer to build your own pension.

Unfortunately there are at present efforts in the policy that the entrepreneurs are to provide likewise for the pension in the form of an insurance. A law is being discussed that the entrepreneurs and self-employed should also pay into the pension fund. Apparently the government sees the ailing pension system and is looking for new cows to milk. I hope this will not come.

What financial goal do I have as a private person?

You often read about "early retirement at 55" or "retiring at 55". My financial goal is primarily oriented to the monthly cash and only from this my age is derived.

My goal is monthly 5.000€ cash To have. It is of secondary importance to me as a private person, from which source this comes from. The main thing is that the money comes as passive income and I am financially free.

Currently I generate my passive income from real estate, from P2P loans, from my blog, YouTube and online marketing. Thus, I am not completely dependent on one source and already have a kind of mental freedom. If one source of income falls away, the others are still there. This diversification is very important.

Nevertheless, the real estate should make up the bulk, because I see real estate as very stable and there will always be a demand. Also, you can leverage real estate, so you can get there faster.

I would like to reach my target in the next four years reach, i.e. in 2021. Then I am 38 years old and that is a good age for retirement and more financial freedom. *grin

Become a private person – How do I reach this goal??

By the example calculation from above and my ambitious goal of 5.000€ in the next four years, it should be clear to everyone that I have to be very creative in my strategy. Both achieving freedom through stocks or paid off real estate takes me too long to.

I want to become private faster. Therefore, my goal 5.000€ through financed real estate want to achieve. So properties that have a Loan lies and the still cash yield.

This year I have bought properties that give me a cash of about 1.generate 000€ per month. I would like to do the same for the following four years. So every year buy so many properties that they give me an extra 1.Drop 000€.

There passive income scalable add up to the monthly 1.000€ from the years. Thus I have in the first year 1.000€ monthly, in the second year 2.000€ monthly up to 5.000€ monthly in the fifth year.

If you then add 2016 as a training year (where I built up my real estate knowledge), then I have my goal of financial freedom in total Reached in six years instead of ten. The ten years I had written in my first blog post.

Since I very much like the strategy of Doubling my goals for the following year, I might even reach my goal sooner. We will see. For me it means for now, continue as before. Save capital, search out real estate, buy. For 2019, my Goals again very ambitious, but I have a good feeling!

What is my financial plan and current status?

The Progress of my way to financial security and financial freedom I keep in a Excel spreadsheet firmly. At the end of each month I blog one Final Report via the development of the current month. In this excel you can see what percentage I have reached of my goal.

To find the individual blog posts, simply "Closing" in the search mask Enter on my page. As an example, here is the Excel from the November closing.

Cash flow November 2017

In November, I was already at 1.407€ from the targeted 5.000€. I have achieved about 28% freedom. Since P2P income fluctuates a bit, the percentage also fluctuates a bit. I always make the biggest jumps when a new property comes into my portfolio.

However, I would also like to try to get more income through my blog.

However, I can only do that if I continuously good content poste and the people Add value bid. Be it through good content or good recommendations. For me, the whole thing is so interesting, because I do not have to Feedback loops I do not have to wait with the real estates, but can constantly write and publish new articles.

Conclusion: My goal is 5.000€ per month in the next four years. Then I could retire at 38 as a private citizen. Then I would have worked 11 years (from 27-38).

Not bad at all, considering that most Germans work around 45 years (from early 20s to 67).

Do you have a similar goal? Until when do you want to be private and how do you want to achieve that? Post it in the comments!


My income and development in December 2018

Rent deposit

Rent deposit in cash, rent deposit account and bank guarantee

Earn money with the blog

Earn money with the blog

Reader interactions


Wow, passive income i.H.v. 5000€ in only 11 years as an employee, awesome!
I’m curious if you can do this, although I would be surprised if not ?

Do you still have tips for the people with a small purse? My husband is still studying a few months, I am on parental leave. Therefore, we do not get real estate financing from any bank. We are currently focusing on ETFs, company investments (Companisto) and from next week P2P loans (Mintos). First steps in the right direction?

Hello Sarah, regarding people with small income I had once written a post. In it the basics are described. Of course, you have to commit to it and not make excuses. There you have to know exactly what is most important to you.

Love greetings,

I have exactly the same goal. 5.000 with 40. This is mainly real estate and stocks and hopefully in the future the online brand I am building up ?

Then we have a very similar goal! Where can you read your progress? I am always super curious about such things myself!

First of all, I like the way you write, it’s very pleasant to read. I also have some immos and am on a good path there as well. With P2P loans I would like to start slowly now. Do you have any tips or have you ever written a blog about it??
Many thanks in advance

Thank you Peter! I have written a lot about P2P on the blog. On the top right in the navigation bar you will find a search mask. There you can enter P2P, then you get the appropriate blog entries displayed.

Very interesting goal,
How do you generate the own contribution for the purchases of future MFHs?
I would like to expand my portfolio too,
Currently, my financing bank has required for my first 110% financed property EK as a fixed value

I can put aside about 2000€ every month from my salary as an employee. Plus bonus payments and the cash from the existing immos. That’s about 30 every year.000€ that I have new to invest. Once the ball is rolling, it gets easier and easier. The current MFH has me around 13.000€ in ancillary purchase costs cost. Within 1.5 years I have the cash from the house again in it.

Many greetings,

in advance again many thanks for your blog and this post. I just read it after coming across your profile and then your blog via a Facebook Page.

I am very excited about the transparency and the quality of your content and would like to motivate you to continue to give gas!

Very good and rational decisions – keep on pushing!

thanks for the positive feedback. I will stay on the ball&

Many greetings,

also from me all the best for you and that you reach your goals.

One question only about your properties. I myself have 2 ZFH. Have you hired property managers or do you take care of it yourself??

Best regards

Hi Benny, I only use WEG management for ETWs and normal management for MFH for everything. The condominium management of the apartments I do myself at the moment.
Here you can read why and how that works:
Remote management

Hubu! Just had boredom on the beach and read the post again.
Where can I find in your exel list the taxation of your P2P loans?
Greetings from Cape Town

I don’t pay tax on the P2P income until I cash it out. And that can take a while&

Hello Alexander,
Do you have a company that owns the P2P or do you keep it private??
I have already dealt with the tax law, but I have to visit a tax advisor soon.
So the current situation is that if you reinvest the interest you get and don’t cash anything out, you don’t pay taxes? Do I see that correctly?

P.S. Just came across your site through your comment under Aaron’s Youtube video. &

Great Blog, I follow already longer time with large enthusiasm and much interest. Especially this article motivates and inspires me for my own investment plans. One question: when calculating your monthly cash flow, how do you determine the percentage costs for IHR and management?

Greetings from Cologne,

Hi Felix,
I calculate the IHR for condominiums with 0.5 cents x square meters of living space x month. For an apartment building it is 10€ per square meter per year.

One question,? I am new in this business at the moment. I would like to buy an apartment.
Could you recommend a bank that offers a good interest rate? ? Would be nice if you had an answer for me.

With kind regards

I can recommend you my bank, with which I myself have financed very often. Take a look here:

Many greetings,

I already have but unfortunately I do not get any feedback. Pity!

Very interesting. I have also watched the channels of Alex Fischer and co. sucked up.
I like your way of thinking: I make more> Less competition&
Comes very close to mine&
Mine means: In life it is always about probabilities. So increase your probabilities to win! &
I would be financially free, according to the current situation, if I had an annual cash flow of ca. 6.000€ (In words six thousand) would have&

I am interested in your point of view on my Little inner critic:
Some things have always kept me from investing in real estate:
1. You can’t get out of real estate quickly. Say if z.B. in Europe times is no longer so stable
2. You take an investment over 30-40 years> The politics can change very often and accordingly the return expectations, fiscal, depreciation possibilities can change very much.
3. We are at the end of the boom, apartments are EXPENSIVE> rather wait, because then more rental yield ?
4. Lump risk.
5. What do I do with rent normads, how does it affect the return on investment? Is there insurance, as insurance makes risk calculable&
6. What happens if I become a job seeker for a while??

(The questions would also lend themselves to a blog article :D)

The leverage effect that you mention can also be used on the stock market (Lombardo loan), only that on the stock market the prices can be determined daily.

I have rented for over 30 years with a similar model in several cities and am very glad that I no longer have to do that today.
All who go this way may be clear that they are acting here massively entrepreneurial and of course there are risks that m.A.n. keep on increasing. Further "tightening" of rent laws, the interest rate, the political situation. If you once had rental failures in another city and then do not reach anyone, the key no longer locks. it gets interesting. Just from "older people" who have gone this way a few decades there are also quite different opinions. (less rent.en / gburek real estate / kommer real estate)
I do not advise against this path, but it is by no means as "easy" as it sounds here in the comments. Especially with "overfinancing" not so much can go wrong anymore. Keyword: "margin call" of the bank. Again, all who go this way act massively entrepreneurial and by no means low risk.

The privateer is prejudged as a bum in today’s worker-slave society
Partly that’s true-because one behaves differently over time-one becomes more sensitive, more sensitive, more lazy etc !!
But of course you have an advantage as a private person despite the disadvantages (you can change them)

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