Every single day another frustrated employee comes home from work cracks
open a beer and spends the rest of their night dreaming of the day they can quit
their rat race for good well for some the only way to achieve this is by
either winning the lottery or working for the next 40 years to collect a
pension there is another way this escape plan that's becoming more popular by the
day is what i call dividend freedom or earning enough dividend income to never
have to work again believe it or not living a life of dividend freedom is
more attainable than most people expect so let me share with you the lowest
amount you need to invest to do just that if you ask me one of the saddest
forms of existence is having to trade the majority of your life at a job you
dislike for a wage that barely keeps the lights on call me a dreamer but i think
that life is about more than just being productive especially when it's in an
effort to make everyone but yourself rich sadly most people are living the
life i just described and you might be too you see it didn't take long into my
working career to realize that the rosy picture of the nine-to-five life that
was depicted to me in college wasn't quite the reality i would be walking
into once i entered the workforce maybe i was naive but when i first started
working i figured people would be glad to be at work given that they were being
paid and all however i soon came to realize that this wasn't the case once
you've received one paycheck the novelty wears off and all you're left with is
often a bunch of mundane work and days that seem to extend longer and longer
over time now at first i thought it was just the people i was working with that
were unhappy i mean if most people weren't happy at their jobs why didn't
they just leave well i soon came to learn that when you look at the hard
numbers people's discontent at their jobs was more prominent than i could
ever have imagined for instance as per 2019 gallup study 52 percent of people
are not engaged at work which is probably why you often see your
colleagues scouring job boards hoping that their next job will be the one that
they can actually tolerate what's worse is that as much as people are barely
tolerating their current jobs in many situations their overall work
experiences seem to only be getting worse another gallup poll asked
respondents about the state of their working conditions and about 40 percent
of respondents said that the quality of their position has worsened in the last
few years fortunately there's a solution to these declining work conditions and
that solution is living off dividends living off dividends if you ask me is
the ultimate form of financial freedom unlike many other forms of passive
investments with dividends there's literally nothing to be done except sit
back relax and cast your checks every time they come in sadly despite this
lifestyle being a dream for most people it's all it will ever be as few ever
reached the point of being totally supported by the dividend income they
earn why is that let me explain if you ask me there are three reasons that most
people will never achieve divine freedom and the first is that they don't even
know that this is an option in the first place for people like you and me we've
known about dividend investing for a while but we are not the majority of
people actually give this video a like if you agree in fact in the united
states only 56 percent of people even own any stock which supports the fact
that not as many people are aware of the dividend freedom lifestyle as you may
think the second reason most people never live off dividends is because they
simply do not make and save enough money to start building towards this lofty
financial goal in fact recent 2021 reports show that still more than 50 of
americans living paycheck to paycheck i think you'll agree that being able to
live off dividends would be pretty hard if you don't even have the funds to
invest within the first place finally for some people the hurdle to amass
enough of a dividend portfolio to facilitate their dividend freedom
ambitions is simply too high for them to overcome to put this into context let's
look at how much the average person would need to invest to start enjoying a
life of dividend freedom as of late 2021 the average cost of living in the united
states was roughly 60 000 a year most reliable dividend etfs these
days offer a yield of around 2.5 percent annually so based on this cost of living
figure one would need to have 2.4 million dollars to hand in their two
weeks notice at work and start enjoying the life of dividend freedom now
contrast is against the average household retirement savings is 65 000
and you can see that the majority people are nowhere close to being able to use
dividend investing to free themselves of their nine to five jobs now i know what
you're thinking why not just invest in assets that will produce higher yields
and this is of course the means of generating more dividend income every
year for instance there are stocks like ibm which happen to be on the list of
dividend aristocrats that offers an annual yield of roughly five percent to
five percent covering a sixty thousand dollar a year lifestyle would require
you to have 1.2 million dollars invested this is a significant decrease in
holdings required to achieve dividend freedom compared to our last example
however i think we can both agree that amassing over 1 million dollars is no
easy feat the next logical step would be to continue to find stocks that produce
higher and higher dividend yields to further reduce how much you need to save
to start living off dividends alone however generally speaking a stock's
dividend yield is inversely correlated to its reliability and risk you see many
companies will try and use a high dividend yield as a means of luring in
investors to fund their cash to efficient enterprises so while you may
think you found your ticket to dividend freedom with these high-paying companies
you may come to be surprised when their dividends are cut or the company goes
out of business in fact relying on even some of the most reliable dividend
stocks in existence has proven to be risky from time to time for instance at
the start of 2022 one of the most popular dividend stocks a t announced
that investors could expect to see its dividend cut in half as it goes through
an organizational restructuring this is so to say that even the most reliable
dividend stocks can leave you high and dry in your quest for ultimate dividend
freedom at this point you're probably thinking that your chances of ever
living off dividends is about as low as me ever getting a match on tinder and
you need to know two things first i'm trying my best out here so give me a
break second being successful and eventually living off dividends simply
comes down to optimizing two key factors which are your cost of living and as i
just explained your dividend yield the nice part about your cost of living in
the dividend freedom equation is that it is entirely within your control whether
you want to live off two hundred thousand dollars a year or twenty
thousand dollars a year is entirely your decision just like it's your decision to
subscribe for more life-changing content like the video you're watching now this
is important to know because this decision plays a massive role in how
much you must save to start your dividend supported life for instance
even shaving off ten thousand dollars worth of annual living expenses living
off fifty thousand dollars a year at a two point five percent dividend yield
would allow you to avoid saving up four hundred thousand dollars in your
portfolio which for most people would take years to achieve then of course
there are the yields themselves we just talked about how investing in a single
company can prove to be lucrative but also rather risky and let's face it you
want to be spending the entirety of your post work life sitting on your investing
app praying for positive news around the one company that is keeping you from
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risk all your money on a single stock you should be diversifying instead
however this diversification must be paired with sufficient returns and this
is where the solutions to most people's dividend problems come to light in order
to marry both diversification and high yields look no further than cover call
etfs when i say cover calls i don't mean those collect calls you get from your
buddies when they ask you to pick them up from the police station when i refer
to cover call etfs i'm referring to funds that buy a set of stocks and write
call options on them the nice thing about investing in a cover call etf is
that investors benefit from covered calls without directly participating in
the options market on their own the fun takes care of the covered calls for them
making this process totally hands-off now you may be wondering what kind of
returns you can expect to receive when investing in this type of fund and i
think you'd be pleasantly surprised popular cover quality apps like the
globe blocks nasdaq 100 cover call etf or the qyld has an annual yield of 11.8
under standard 60 000 a year of living costs this will require you to have just
over 500 000 invested to begin living off dividend going back to our prior
point of diversification you may be thinking that this is still a ton of
money though i've invested in one single asset and it's true however this fund is
diversified amongst many very reliable companies like apple tesla and google so
unlike our t example you are spreading your dividend freedom across numerous
high performing businesses moreover the best part is that it's not like you have
to open your brokerage account tomorrow and deposit 500 000 to make this
investment strategy work it's more than possible to start investing into this
fund over time and then use the dividend income it produces to reinvest and raise
your position in fact this is how most sizable dividend portfolios are built
but in this case the amount you need to be totally relying on dividend income is
much more attainable however even a 500 000 so will be a lot of people who
simply cannot fathom amassing this kind of money so i want to present one final
alternative when you think about it the main benefit of living off dividend
income is that you can gain total time freedom while never having to worry
about your bills again fortunately there is another way to achieve the same
lifestyle without having to invest hundreds of thousands of dollars and it
comes in the creation of an automated online business as you should know by
now the internet is more than just a repository for cute cat videos the
internet presents a means of setting up online assets that can pay you
handsomely each and every month and if you ask me is most people's best chance
of living a work free life in the near future i know the thought of living off
internet income without having to work seems like a radical idea and i thought
so too until i achieved it for myself i can literally run my youtube channels
all through outsourced work and still generate enough profits to pay my bills
without having to work and the same lifestyle can be achieved through
numerous popular online business models like drop servicing drop shipping
blogging and basically all other forms of e-commerce now while setting up this
kind of online business be free there's no chance it will be right well you may
be surprised to learn that you can in fact start a six-figure online passive
income business with absolutely no money to start and can achieve income freedom
ten times sooner than you ever thought possible
which i'll teach you how to do step by step in this video right here click on
through and let's get started