In my last post, I discussed how I achieve my big goals by breaking them down into smaller goals. Well, one of my major goals is to be financially free before I am 45 which is not an easy task on a graduate engineer’s salary 😊
To make it easier for myself, I have divided this goal up into smaller goals to make it more manageable. My goals are
- €1000 a year
- €2400 a year
- €5000 a year
- €12000 a year
As you may know from some of my previous posts, I like investing in good quality companies that are likely to pay dividends. I started this last year while still in college and only invested a small amount for the first 6 months until I finished my college exams and since I started work, I invest $1000 a month.
On my way to financial freedom, my first goal is to make $1000 in dividends in a year.
To date I have invested $7416 which returned $71.56 in dividends last year and it is projected to return a dividend income of $241.81 this year, which is roughly $20.15 per month.
With the magic of compounding I expect this to grow even further this year as I invest more each month.
The list of dividend holdings is listed below:
The amounts of dividend income above may seem low and I could easily see why anyone would not get excited by earning $70 over a year but remember this was earned by me doing no more than clicking a button to buy some shares. Besides, this just the beginning and is a proven strategy/system for achieving long-term financial goals.
Starting is always the hardest part of investing and I want to show that you don’t need to be earning a huge amount of money to achieve your financial goals.
The Journey of 1000 miles begins with one stepLao Tzu
And while it is easy to get discouraged, remember that by continuing to add $1000/month, essentially, you are buying $30 in annual dividends which will hopefully grow above the rate of inflation over time.
Eventually you see each dollar invested as a dollar that will grow dividend income for you, without any additional effort and it is comforting to know that your money is working hard for you.
I have shared in the past, how I select companies, here, however this has changed as the Drip investing site is no longer maintained but the principal is still the same. For those who prefer not to put in the work, there are plenty of resources out there that can help you such as this one