Yesterday, I bought another dividend stock and succeeded at one of my baby-steps towards self-sustaining wealth: I have a passive monthly dividend income.
Albeit, a small one, but it’s there!
I know some people disagree with my decision to put money into savings & investments when I still have student loans, but acquiring income-generating assets is just as important to me as eliminating debt.
I used to read Early Retirement Extreme religiously (I still drop by occasionally but I’m not as diligent because I just don’t get the never-travel and take-cold-showers thing), and I was fascinated by the idea that you could accumulate enough wealth for it to be self-sustaining — and to do so on a middle-class income. I really never thought I would be destined to be wealthy because I expect to earn an average income for the entirety of my career, and assumed I would always need to work in order to pay my bills. Reading ERE really made me realize that not having to work (but still choosing to, because I love my job!) is a viable option, and even attainable relatively early in my adult lifetime.
Most stocks pay out quarterly, so when I pick which companies I want to buy shares in, I try to stagger their payout dates so I’m not getting all my dividends at the same time. This isn’t as easy as you might think: I’ve often found if I’m interested in say 5 different companies, 3 or 4 of them pay out on the same schedule. I might just be bad a stock-picking, but I think the financial year plays a big role in this too.
I’m pretty stoked about achieving this passive income goal, because now I feel ready to start building my portfolio in other ways, and I might even put dividend-payers on the back-burner for awhile.
Really I just love that there’s money being deposited into my account on a monthly basis and I don’t have to do anything except let it happen!