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  • Molly's Money

Her goal: 2500 EUR a month in passive income



Disclaimer: Investments are always made at your own risk. Historical results on the stock exchange are no guarantee of future results. Before investing, always seek advice from a completely independent, fee-only, certified financial advisor. This text is for informational and entertainment purposes only, it should not be considered as financial advice.


Ann:

Hi Miss Investments (Fröken Investera in Swedish) and welcome! Thank you for taking the time to talk to us about your personal journey and destination. When I found your blog, I was completely stuck for hours reading your blog posts. Then I also found your instagram account and what you do is very inspiring! With over 18,000 followers on instagram, you are one of the biggest influencers in the Swedish personal finance space with a focus on investing and thrift. It's really great to have you here.


Miss Invest:

Hello and thank you very much! I'm glad to hear that you want to hear more about myself and my background story! Haha yes it is unbelievable how many people follow me today! It's really not something I expected when I started my Instagram account and my blog! It seems that there is a great "hunger" for savings tips and how to get better personal finances and it makes me very happy that people can be inspired by crazy little me!



Ann:

Your goal is to save and invest to create your own "lottery win" of 2500 EUR a month. This is in passive income by investing in the stock market. You live incredibly frugally today (about 500 EUR a month in total living expenses) in order to reach your goal. What is your driving force and what is it that makes you take on this journey?


Miss Invest:

That's right! So my goal is to save and invest so much that one day I get passive income of 2500 EUR a month on average! I relate this to "TRISS lottery win" (Swedish lottery) because it has always been a dream for me to scratch out that win where you get 2500 EUR a month, but then when I started reading about investments and shares with high yields, I realized that I could "create" my own TRISS-lottery win so that's what I'm fighting for now and I expect to reach my goal in about 10 years and then I'll be 40 years old!


To reach my goal, approx. 750 000 EUR in capital is required if I am to live on the return and get this money, but it is NOT the money that is the goal! My goal is the freedom that money can give! So my drive is to build my own financial freedom for myself, my future family, my parents and even for my future generations! I do not come from a rich family but a rich family will come from me, is the idea!



Ann: Your income is 2400 EUR and you invest approximately 2000 EUR a month. How can you have such a low cost of living? and do you have tips for others who want to reduce their cost of living?


Miss Invest:

Yes, my net salary is around 2400 EUR from my permanent employment in the aviation industry and yet I manage to save over 2000 EUR every month. This is due to a combination of very low living costs and the fact that I try to increase my income elsewhere than just my permanent job! For example, I have my side-gig in a store in town, I sell things on online sales platforms or Facebook's Marketplace, I get share dividends, I run my blog and Instagram and everything else I come up with!


I am very extreme at saving money! If I were a superhero, this would be my superpower haha! What I do now temporarily during these years is that I only buy things that I really need! Right now I refrain from travel, outdoor food, cinema visits, coffee in town, services like Netflix / Spotify, I have moved to a cheaper apartment, switched to a cheaper mobile operator and I am constantly trying to find a cheaper alternative or expenses that I can cut !


By making the choice to buy less "wants" or "everyday luxury", you can immediately save tens or maybe even hundreds (EUR) a month and that is probably one of the messages that I manage to reach people who have chosen to follow me with!


I also usually count everything I want to buy in working hours and not in money, so if I see a jacket for 150 EUR that I really crave, I calculate what it costs in hours at work for me! Then I make the choice whether I want to buy it or not and usually it is a no haha!



Ann: Your plan is to create your own lottery win. How do you calculate to get out 2500 EUR a month passively?


Miss Invest:

I always count on the 4% rule and that means I want to live on 4% of my total capital. Since it is said that the stock market / shares rise by 8% annually, this means that my money also continues to grow by 4% every year, even though I withdraw 4% every year! This is exactly why the 4% rule is so common to talk about in these circles!


Then you can both have the cake and eat the cake while it continues to grow!


What is required for my goal of 2500 EUR / month is a capital of 750 000 EUR and it can be calculated as follows:


You first want to calculate what amount you want annually, in my case with 2500 EUR every month, it will be 30 000 EUR in one year (2500 EUR x 12 months = 30 000 EUR).


Then I take 30 000 EUR divided by 0.04 (4%) and then get the amount required for the 4% rule, which is 750 000 EUR!


If, for example, you want to receive 1000 EUR a month, we then calculate this sum for the year, SEK 12 000 EUR.


12 000 / 0.04 = 300 000 EUR. So for a sum of 1000 EUR / month, a capital of 300 000 EUR is required!



Ann:

What do you think your day will look like, once you have achieved your goal of becoming financially independent?


Miss Invest:

Then I will do exactly what I want and when I want, travel where I want, eat where I want and so on! Many people think that you will stop working when you have reached the goal, but that is not true with most people!


My goal is instead to continue working with Miss Invest and continue to spread knowledge about personal finances and inspire more people to start saving money! I already have some plans that include talking in front of schools and planting some seeds of thought for the younger ones, which is something I wish had happened to me when I went to school!



Ann:

Thank you so much for your time and your answers Miss Invest!


Miss Invest:

Thank you very much yourself for your questions and that you wanted to hear a little more about me! It was great fun and I hope that someone out there can find this interview interesting and maybe thinks it is a little thought provoking!



Miss Invest a runs the instagram account froken_investera (in Swedish) and the blog on frokeninvestera.se (in Swedish) There are lots of interesting articles and more information about Miss Invest's life and journey towards financial independence. Follow her for more information and inspiration on investing and a frugal lifestyle.


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