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So I’ll tell you in this video how much money I get paid in dividend and from what but more importantly how I change my strategy to arrive faster at the goal of getting Dividends to cover all the bills.
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1. To the Man with a lot desires and little money, better to have less desires than it is to have more money
-I talk to a lot of people that if they just lowered they standard of living ( which more than often is just ridiculous, they could achieve their financial goals immediately )
-My point is, look into your bills and see what is a need and what it is want ( also think about truly makes you happy and more than often its not the stuff you buy )
Here Some Numbers:
-My monthly expenses believe it or not are about 1017
-Minus what I get paid in dividend 470
-Meaning I only have to find $547 a month to be able to live
However: if I had a big lifestyle that would cost a lot more
2. Investment options ( stocks or Index Funds )
-Now I personally invest into index funds and because it takes less work I also get paid less 1.9% dividend annually
-Now if I put all that money into a high paying stock like at&t would make 6%
-The difference I would make about $1500 per month instead in dividend payments
However here the Pros of index funds
-Since I’m only invested into the s&p 500, my overall guess is that American companies will be better and bigger years into the future
-So if any individual companies fall I don’t care
If I put my money just into ATT
-Well if they live for another 30 years great I made a lot of cash
-But if they don’t then I lose a lot of money
My preference: is investing into index funds for the long term
3. How to pay your bills
-Start with your small bills first
-And remove the bills you don’t need
-My first bill ever was my haircuts, then my phone bill and the math was simple
First:
-Calculate the annal cost of that bill, for haircuts it was $720 bucks annually
-And then divide it by your dividend yield, and that tell you if you make 2% then you need 36k
-And some bills you will notice are not worth the effort
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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor. source
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