Wouldn’t it be great to just kick back on the beach with a beer? I bet you said yeah. Now, wouldn’t it be even greater to kick back on the beach with a beer while MAKING MONEY? Even better.
I’ve made a plan to contribute $1, 500 / month to a financial independence fund (starting with $6000). Assuming this investment fund could receive a semi-conservative capital appreciation of 7%, while yielding a 4% dividend (not even taking dividend growth into account), by the time I turn 50 (in 29 years), I would have $4 million, while receiving $150, 000 in dividends WITHOUT even touching the $4 million I would have grown.
You can see the entire plan and the math behind it right over here in a very simple, easy to understand spreadsheet: Dividend Goal / Year Spreadsheet
Of course, 29 years is a long time, and to keep myself motivated I’ll focus in on a slightly shorter term – until I’m 40, for now. By the time i’m 40, I’ll have grown this $1500 / month (starting with $6000) into $1.2 million and will receive $47, 000 annually in dividends if I achieved a capital appreciation of 7% annually. While this is semi conservative, I’ll lower it to a conservative rate of 5% per annum to create a small buffer and allow myself to definitely keep a great track record.
At a capital appreciation of 5% per year, while contribution $1500 / month (starting with $6000), by the time I’m 40 I’ll have $922k while receiving roughly $37000 / year in dividends, this equates to $3, 703 / month — for not doing anything other than having the foresight to invest in these incredibly dividend growing companies.
Yeah, I’ll be sitting on the beach with a beer making ~ $35, 000 / year doing whatever I want.
Below are listed my annual dividend goals. Dividend investing is a snowballing process which starts off slowly and grows into something magnificent. Achieving these goals will test my patience and discipline, but the rewards are well worth it. According to these goals, by the time I’m 32 I’ll be making $1000/month as I go about my day, sleep, eat and relax! And by 40 I’ll receive nearly $3000/month for doing whatever I please!
I am currently age 22. You can view my monthly dividend income summarized here.
|Age||Year||Annual Dividend income ($)||Monthly Dividend Income ($)|
2017 Financial Goals
- Have a net worth of $85, 000.
- Increase my salary by at least 15%.
- Receive $3,000 in dividends for the year.
- Increase my 12-month forward dividend income to $3,300 ($275 monthly).
- Collect $200 from Google Adsense.
- Read 12 books.
- Save at least 60% of my after-tax salary.
- Have a net worth of $60, 000 – succeeded.
- Increase my salary by at least 15% – failed (company had troubles).
- Receive $1,750 in dividends for the year – succeeded.
- Increase my 12-month forward dividend income to $1, 800 ($150 monthly) – succeeded.
- Collect $200 from Google Adsense (was short by $15).
- Collect $50 from Affiliate Sales – failed (didn’t focus enough).
- Read 12 books – succeeded.
- Save at least 60% of my after-tax salary – succeeded.
2015 Financial Goals
- Receive $500 in dividends for the year – succeeded.
- Have a net worth of $40, 000 – failed.
- Receive $50 of income from a mobile application – failed.
- Receive $10 from blogging – succeeded.
- Receive 6.5% in capital gains – failed.
These goals were set on April 1st, so the $500 in dividends spans from April to December – as well as for goal 3 & 4.