My overall goal is to build enough dividend income that will exceed my spending. I would like to achieve this by the time I'm 40, but hope I can achieve it much sooner.
Right now I would need that number to be in the $30k-$40k ball park. At current calculations I have myself reaching $30k around age 40. However, I did not include my 401k, my non-dividend stocks, and my acorns account. Right now I have about $80k in these additional investments. If I can grow this number to around $200k by the time I'm 40 then I can redeploy it into dividend growth funds and exceed that $30k mark.
Below is a table I developed to show my future dividends. The yield is based on original cost and assumes a small dividend growth per year. I did not add any principal growth to the balance in the first column and that is why I used yield on cost.
As you can see the snowball of compounding really starts to take effect. Now I Like to under estimate when it comes to how much I can save in order to not get my hopes up. If I can increase my savings per year I should be able to achieve these numbers much sooner.
2018 Goals:
Achieve over $4,000 in dividends
2017 Goals:
Achieve over $2,800 in dividends (Success!)
So this year you're investing 2361 per month and next year you'll invest 2458 per month and so on and so forth?
ReplyDeleteI would like to be able to do that yes. That table is simply dividing 25,000 + 3,300 / 12 months. I've run into some unexpected expenses so I've started off slow this year, but hoping to get at least 2k+ invested each month.
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