If you want to live off dividend income you have to be old and have millions of
dollars invested right well not quite and in this video i'm
going to be teaching you exactly how you can live off dividends
faster and word on the street is that for every new subscriber i get one of my
subscribers will collect ten thousand dollars in
dividend income this year so hit the subscribe button below
and before we begin know that i'm a cpa but i'm not your cpa so before you do
anything with your money please consult professional financial
advice because this video is for entertainment purposes only now i
don't want to get overly emotional to start off this video but it makes me so
happy and gets me so excited to see so many more people finally waking up
to the power of investing and many of them are investing younger than they
ever have before and this is great to see because for the average person
if they ever want to actually build true wealth in their life they need to start
investing as early as possible and they need to be consistent so over
time their investments grow to the point where they become financially free which
if you ask me is definitely one of the biggest
benefits of long-term investing in fact one of the biggest draws of
attaining financial freedom for most people
is being able to leave their nine-to-five job never have to clock in
or work again and be able to enjoy all these small things in life
that they weren't able to enjoy when they were clocking in and working their
nine to five jobs but unfortunately many people think they get to this point
in their financial lives they have to be 80
90 100 years old and wearing velcro shoes but the fact of the matter is you
can get to this point much sooner especially if you employ the
tips that i'm going to be sharing with you
in this video the first step in your quest to achieving dividend investing
success is to start now not tomorrow not the day
after not next month not next year start now because the process towards
investing towards dividend success and financial freedom
is possible but it's only possible once you actually get started and you want to
get started as soon as possible to give yourself
more time towards that investing horizon so what's the first step you need to do
you need to open up a brokerage account some sort of account that you can start
to invest into dividend producing stocks through
so examples like td ameritrade fidelity even weibo who's a sponsor this video if
you deposit a hundred dollars they're gonna give you two free stocks worth up
to twenty three hundred dollars so whatever platform you choose you just
need to open up this account and you need to start the process
towards your own dividend freedom now before you
start investing any money through that brokerage account here's what you need
to do next what you need to do is you need to
get yourself educated on things like the stock market
different investment vehicles different investing fees
basically everything that goes into the actual process of investing so you
become very familiar you can simply throw your
money into your brokerage account buy some random stocks and just hope for
things to work out that's not going to work
and that's not going to allow you to start living off your dividends faster
than the steps that i'm going to continue sharing in this video so you
first need to educate yourself and how do you do this well you watch
youtube videos like this you read books you take online courses
you find an investing mentor basically you need to start the process but with a
proper financial education baseline from which
you'll grow upon year after year after year as you go on
your own dividend freedom journey so again do not put a single cent into
the stock market i know it's going to be enticing you want to get this process
started but you need to educate yourself first so i just want to drive home that
point that the money will come the dividends will
come but first be patient and start getting yourself educated now step
number two of living off your dividends faster is to actually calculate how much
dividend income do you need to earn on an annual basis
to be able to live to be able to rely upon your dividends to cover
all of your living costs each and every year and if you ask me this is the most
important step in the process simply due to the fact that depending on how much
money you need to live off of this will dramatically impact the
timelines that it's going to take for you to start enjoying your dividend
freedom life because ultimately you're going to need
less money invested if you're able to live off less money so let me
share with you a practical example so you can truly understand what i mean
by this so let's say that you can live off of thirty thousand dollars a year
okay well in the circumstance let's say that
you're getting a dividend yield of about three percent so how would you calculate
how much money you need to invest towards
you take the thirty thousand dollars divided by the three percent dividend
yield and you would need one million dollars
invested to be able to get that thirty thousand dollars you need to live on an
annual basis but let's say that instead you decided well i need to live off
seventy thousand dollars a year how much money do i need invested so if
you took seventy thousand dollars you divided by the three percent you need
two point three million dollars invested to be able to live off seventy thousand
dollars a year in dividend income now when it comes to the timelines of
actually achieving your own dividend freedom
let's talk about how much sooner you'd be able to live off your dividends if
you were able to live off a lower cost of living so in the first example you
needed to save a million dollars in the second example you needed 2.3
million dollars so if you invested a thousand dollars a month
at a six percent rate of return you'd actually be able to hit that a million
dollar mark 12 years sooner than it would take to achieve 2.3
million dollars invested so you could literally live off your
dividends 12 years faster over a decade faster if you simply fine tune
how much money you're gonna need to live off of
each and every year simply from dividend income alone so now that you know how
much faster you're going to be able to live off your dividends if you
streamline all of your expenses let's talk about how you
actually go about doing this you see if you watch many of my other videos where
i talk about saving money one of my best strategies that i always
share is looking at your big three your big three
are your expenses of housing food and transportation they usually
make up anywhere from sixty to seventy percent of the average
person's budget and you may be thinking wow that's a
ton of my budget taken up by these three single items and yes
of course it is but the fact of the matter is it's also a great
opportunity to start cutting out expenses from these areas because they
are simply so large so let's briefly talk about how
you can do that right now so first let's talk about housing right
so some ways to cut down your housing costs maybe renting out a room to offset
some of your costs maybe downsizing to a different place
that costs you less each and every month and moving on let's talk about food now
do you really need to go to dinner three or four times a month or
even once a week i mean can't you just go once a month and save yourself a few
hundred dollars if we're working towards that a thousand
dollars you're gonna start stashing away to be able to live off of let's say
thirty forty fifty thousand dollars a dividend income a year
then you're going to have to make some sacrifices and going out to fancy
dinners may just have to be one of them now finally when it comes to
transportation you already know what i'm going to recommend
don't buy a fancy car don't buy one that's going to be costing you more than
a mortgage in car payments each and every month buy
used maybe sometimes even take a bike out and save yourself gas
and depreciation on your vehicle the fact of the matter is you need to be
smart you need to be wise because achieving financial freedom through
dividends is not an easy task it's actually going
to require you to be rather ruthless with your finances
but i promise when you're chilling there and everyone else is working and you're
able to live off dividends now and of course into your old age
you're going to be happy that you cut out these expenses that were probably
not adding that much value to your life in the first place now i think at this
point it's rather clear that your expenses play a huge part in your
ability to live off your dividends but for many people they're gonna start
cutting down their big three costs or even gonna cut out some smaller costs
and they may not have the thousand dollars accessible to them
to regularly invest to basically be able to mimic the example they shared earlier
in this video so if this is you then you have one other major lever that
you can pull to gain your own dividend freedom and that comes in the
form of making more income you see firstly unlike expenses
your income is infinite so when you're looking at your expenses you're always
going to have some sort of baseline level for housing
food transportation etc but with your income there's really no ceiling you can
make ten thousand dollars a year a hundred thousand dollars a year
ten million dollars a year there's no cap
but with expenses you're always gonna have to be dishing out some sort of
money so you can really only peel back some costs from your expenses
but you can always make more and more and more money which allows you to have
the cash that you need to start your investing journey towards
your dividend freedom now the second benefit that you're gonna
get out of looking at your income versus simply only relying upon cutting down
your expenses is that you're going to force yourself
to grow you see when you want to make more money you need to provide more
value and you have to grow as a person to be able to do that so maybe it
requires you to work more time over time at work maybe it's going to
require you to take on a new skill start a side business
basically making more money is always going to push you
outside of your comfort zone so you work overtime hours to gain more experience
you start to side hustle you're going to learn very important
business lessons and how to be self-sufficient financially so again
making more income is important because it gives you more cash etc
but it also helps you grow as a person and that's a benefit that many people
overlook now the final benefit that many people
overlook when it comes to making more money
is of course that in many circumstances it could be a lot of fun you see
it's great to make more money have more cash etc but having fun while you're
doing it is very important because it'll keep your enthusiasm levels high
it'll keep you motivated and this will push you to make more money year
after year after year that allow you to collect more cash
invest more and actually get to the point where you can live off your
dividends much much sooner if you ask me one of
the best things i've ever done is starting my other youtube channel
betterment boss now it makes me over a hundred thousand dollars a year which i
teach people how to do themselves in my course six figure tuber
but throughout the whole process of building up a youtube channel i've had
so much fun i've connected with so many amazing individuals
so making more money doesn't have to be a slog it doesn't have to be a grind yes
it's going to take some work but all the benefits from the monetary
to the non-monetary i promise will be worth it so if you made it this
far in the video make sure that you smash the like button below so people
know that you made it to this point and now you should have a very good
understanding of the process it's gonna take to be able to get to your own level
of dividend freedom you see you need to cut down your expenses you need to
invest regularly and if you don't have the money to
continuously invest at least a thousand dollars what you want to do
is you want to start making extra income to allow yourself to have the cash
to regularly invest a good sum of money but
now because you made it this far in the video i'm going to share with you
one other secret tactic that you can use to get to your dividend freedom goals
much much sooner you see the last element that you have to focus on if you
want to start living off dividends faster is you got to focus on your drip
and now i'm not talking about going to the gucci store and buying the flyest
outfit that's on the rack no i'm talking about a drip a dividend
reinvestment plan so let me explain how this is going to allow you
to your dividend goals much faster you see when you're just starting off your
dividend investing journey you're probably not going to be collecting that
large of dividend investing checks each and every year maybe
a hundred dollars or a thousand dollars but are you gonna live off a hundred
dollars or a thousand dollars i would say probably not so you can
collect that money and you can spend it or you can collect it and just put it in
the bank and let it basically wither away to inflation
or you can set up a system where you're using a dividend reinvestment plan so
every dollar that gets paid out as dividends
gets reinvested so what does this allow you to do it basically allows you to
improve your dividend holdings in your dividend position
so that the next year you gain a little bit more in dividend income then the
next year after that a little bit more and a little bit more
and this compounds over time because you're always re-buying into those
dividend stocks that will allow you to collect dividend
paychecks that are much larger in the future so just think about this
instead of collecting an extra 100 or 200
even a thousand dollars let's say that each every year that you are collecting
a thousand dollars in dividend income and you are investing regularly a
thousand dollars a month well this is like making an extra contribution in a
year and i'm sure you can already understand that if you're making
one extra contribution a year or two or three or
four once you get to making a thousand two thousand three thousand or four
thousand dollars in dividend income this will start to add up over time
it'll be a compound or a cumulative effect
that will allow you to build up in a dividend investment portfolio
much much faster so yes you want to cut down your expenses
yes you want to make more money these are very important pillars of achieving
dividend financial freedom but at the same time you want to use
these more my new concepts and these are my new tactics like dividend
reinvestment plans to ensure that you put all the momentum
behind you to get to that dream dividend financial freedom lifestyle
that you want so again now you have all the steps to be able to
live off dividends faster all you need to do
start today cut your expenses make as much money honestly
as you can and reinvest that towards your dividend freedom and when you do
this and you add in the drip at the end i
promise achieving dividend financial freedom will be
possible and you'll be able to do it before
you're an adult diaper so that's been the video if you like the
video please give it a like if you're new to the channel please subscribe
and i'll catch you in the next one later