Traditionally, we go to school, take a job and receive a paycheck in exchange of the work we do. That’s how we generate income to cover our expenses and live in our capitalism society.
The problem with that strategy is that we need to exchange our time and our freedom to generate income. Unfortunately, our time is limited and as such, the income we can generate is also limited.
Riches and real capitalists don’t make their money that way, because they know it’s the less efficient way to make money in such a system. They instead invest their time, money and efforts in developing or creating income generating assets in the form of property. It can be real estate properties, part ownership of great companies, intellectual properties such as trademarks, brands, books, music, patents, softwares…
I personally invest in dividend growth stocks and today, I have reached a milestone!
It took me a long time to finally understand that I wouldn’t get rich quick by magic. I lost a lot of time on trying to find a great paying job, on trying to find the one idea that could get me rich quick (apps, invention, books, websites…). This led me to finally find a good paying job, but not to free myself from the slavery that comes with it!
The fact is that I don’t really care about money. I don’t need to be a billionaire or even a millionnaire. I don’t want money to buy luxury, a BMW, a huge house or a private jet. I don’t need to show off and make my neighbours jealous. I only want money to buy my freedom.
I think that the most valuable thing one can buy for himself is his own freedom…
When we are young and we think that we will live forever, we don’t give a high value to time. We even spend time “vegging” in parks with friends doing nothing… But as time pass by, we soon realize that time flies, that we get older and that we’re not immortal. Actually, we could die tomorrow or next year or in 50 years from now… The problem is we don’t know. So we can’t properly value time.
Would you accept to work for 20$ an hour if you knew you would die by the end of the week? I guess you would most probably find better things to do with your time.
Investing in income generating assets provides the advantage of letting your money work for yourself and eventually you’ll have enough money to consider doing better things with your time than making your boss wealthier!
This week, I have reached an important milestone : 1000$ in growing dividend income!!!
It’s nice to know that this income shall also grow at a rate above inflation starting from now because I have invested my money in companies that usually increase their dividend payments to shareholder at a rate a lot above inflation but also because I will reinvest all those dividends for years until I retire. I have planted some seeds and these seeds will grow slowly but surely into a huge forest!
I have been able to reach that kind of income within a year investing my time and money in stocks of great companies paying growing dividends year after year. My portfolio is now worth ±30,000$ CAN.
A 1000$ per year, that’s almost 3$ per day, 365 days a year! My goal is to reach 65$ per day in passive income. Three dollars per day is what I spend on coffee so it doesn’t seem a lot… And that’s something I started to realize this year. When I go to the restaurant and pay 50$ on a burger and a couple of beers, I now know that it takes approximately an investment of 2000$ worth of Wal Mart’s stocks in order to generate that kind of income. Knowing that can make you think twice before spending money on stupid things! I gives you a whole new perspective about money.
I still have a long way to go to reach my goal of 25,000$ in passive income but it feels great to know that from now on, I’ll make a 1000$ in extra income every year and that this 1000$ of income will grow by itself through dividend increases and dividend reinvestment.
They say that the first million is the hardest to get. While a 1000$ is not a million, I’m sure that the same applies here!
[author] [author_image timthumb=’on’]http://quityourdayjob101.com/wp-content/uploads/2014/03/ID-10050051.jpg[/author_image] [author_info]Hi, my name is Allan. I’m the masked blogger. Like you I’m a modern slave, prisoner of a 9@5 job in Corporate America. They told us when we were young that we would live in a society of leisure and that technology would permit us to work only a couple of hours per day. But we live in a society of stress and uncertainty. My situation could be a lot worse and I know it. So many humans are suffering on this planet. But a golden cage remains a cage anyway. At least, I have an escape plan. I will retire before 45 years old over my passive income. This is a dream that is so powerful that I will make sure it happens. To build my wealth, I mainly invest in undervalued dividend growth stocks. [/author_info] [/author]
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