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Well good day subscribers hope you guys are having a great day out there i want you to take a moment with me taking a moment with me and imagine this scenario imagine a scenario where you wake up in the morning and you don’t go to work because you have to you go to work because you want to or you don’t go to work because you don’t want to and the reason being the
Reason you can make this decision is because you have enough money that is constantly building you more money through dividend stocks literally you can pay all of your bills with just dividend money that is constantly coming in that is a scenario for some folks out there i’m going to teach you guys exactly how to do this step by step here today how to actually
Make a living from just dividend income which dividend income essentially is money that’s paid out to you from different stocks out there okay so like let’s imagine like coca-cola right coca-cola is a stock you can buy okay like any individual out there can buy coca-cola stock coca cola pays dividends every three months you can go ahead and take that money you can
Reinvest that money into more stocks or you can use that money to spend on things out there okay so that’s what a dividend is and literally there are people that they make so much dividend money that they don’t have to work a normal job or something like that and that might be an ambition of yours out there so if that is i want to at least teach you guys how to
Get there okay so you so work can be more of a decision you do rather than something you have to do okay so here’s how i kind of think about it all right you need to be making if you’re a single person you need to be making around 50k pre-tax roughly you know maybe you can go down a 40k pre-tax somewhere around there which will leave you about 40k post-tax from
Dividends alone and you can live in 98 plus percent of the world okay there are certain areas you might not be able to make it on in that much money like manhattan 40k is probably not going to be enough straight up if you live in san francisco or monaco or certain areas like like 40k you know and basically after taxes will probably not be enough to live a nice
Lifestyle but in 98% of the world you can live a nice lifestyle on 40 k if you have a family maybe somewhere around 60 k roughly pre-tax that leaves you with about 50 k or so a post tax after your basically you pay your taxes on your dividends once again 98 plus percent of the world you can a decent lifestyle no you’re not to be you got a flashy lifestyle but
You live a decent lifestyle and not even have to work okay 98 percent of the world which is a pretty amazing thing and that is definitely achievable and they’re definitely people that have achieved that okay so what i want to go through is what do you actually need what are the five things you need to be able to pull something like this off and then we’ll start
Getting into the mechanics and how you actually do this guys i hope you really enjoy this video make sure you hit the thumbs up and let’s start getting into it you guys the first thing you are gonna need the first thing is necessary is you need to have some sort of savings okay doesn’t have to be a lot of money you don’t have to have like $100,000 saved or a million
Dollars saved or something like that in a bank account no you just need to have some money saved it could be a thousand bucks it could be a few thousand dollars now you have kind of saved a way that you are ready to invest that money and start building that money into more and more money through dividend stocks okay you have to have some sort of money otherwise is
Not an investment right in order to be an investment you have to have some money that you funnel into something that can hopefully build you more and more money so you have to have some source savings i hope you guys do have some sort of savings if you are watching this and you have literally no savings right now you don’t have like even like a few hundred dollars
To your name okay you need to either get a better job or get a job period maybe you don’t have one yet you can start a side income project i mean search up passive income ideas there’s so many ideas or you might be in a situation where you have a job you just aren’t being able to basically funnel enough money into like a savings account or something like that to
Kind of build savings and then you got to kind of look at your expenses and say what can i do to get my expenses down or you can look at your income and say what can i do to make my next move – you don’t get a job that pays better and what this one pays or do something like how do i start a side project over here a side income stream or something like that you
Got to either fix the income or you got to fix the expenses it’s one of the other and it’s different for different people some people have really big incomes and they spent all their money they never have any money for investing because they even though they make let’s say ten thousand dollars a month or twenty thousand or whatever they never have any money to
Invest just because they’re spending it all you don’t ever want to be in those situations so you need to have some savings okay that’s number one’s gonna number two already has the second thing you have to have to make this work is you have to have a situation where you have at least a few hundred dollars if not a thousand plus dollars each month that you’re able to
Funnel into stocks to build more and more dividend income okay it can’t just be you know you put in some money at first and then there’s no money being funneled in and so you’re just building off of what’s coming in for dividends that’s gonna slow things down in a massive massive way you want to speed up the process really fast make sure you’re in a situation where
You have at least a couple hundred bucks if not a thousand plus dollars each month that you can funnel into building more and more dividend money compounding is absolutely an amazing thing okay as a snowball gets rolling it gets to be bigger and bigger and bigger and bigger with the bigger amounts of money okay so if you can speed up the process by putting at least
A few hundred dollars or a thousand plus dollars into your brokerage count each month and building the dividend stocks bigger and bigger it’s gonna help so dramatically in the the speed the time it takes to achieve what you want to achieve it’s gonna happen so much faster guys so this is so key and once again if you’re down in that situation that’s fine you’ve got
To figure out do you have an income problem or do you have an expense problem it is one of those two problems at the end of the day some people it’s both problems they are making enough money and on the expense side they’re racking up debt and things like that okay which brings me to one other real quick point i’ll make which is make sure you guys are staying out
Of debt because if you’re racking up a lot of debt especially if you don’t know what you’re doing with it like it’s gonna hurt you really bad you’re racking up debt at 18 percent interest rate how are you ever gonna build money because you know you’re paying that interest rate constantly okay so that’s number two let’s get a number three are you guys the number
Three thing you’re gonna need is you’re gonna need to know how to pick stocks decently okay you don’t need to be the world’s best stock picker out there you don’t need to be absolutely killing the market and oh my gosh you’re outperforming you just need to be like a decent stock picker you need to know all the things to look for in stocks okay now i have a course
Linked in the description that goes into everything i look for in a stock i’ve been the stock market for over ten years that will save you ten years of experience basically in one course you can learn from if you binge watch in a day or two okay but if you don’t have the capital to you know afford a course like that there are tons and tons of books out there you can
Read go to your local library start reading books it’s gonna take you a long time to kind of get all the knowledge because you’re gonna have to pull from a lot of different places there’s not really just like one book i can point out and say that book it covers everything you need to know there are a lot good books intelligent investors a good book but there’s no
One specific book out there i can say that books going to tell you everything you need to know it just doesn’t work that way guys so you’re gonna have to learn how to pick stocks that’s gonna take you some time okay depending on which route you kind of go it could take you many months to learn the information you know it could take you honestly years to get to the
Place where you know how to be deadly to a decent stock picker out there that you can kind of perform what the markets okay so that’s the number three thing you’re gonna need let’s get into number four the number four thing you’re gonna need if you want to build a dividend portfolio that you never have to work again is you’re gonna need time on your side okay this
Is a very very key thing and i this isn’t going to be as much fun if you’re like let’s say 45 plus years old and you’re watching this video right now there’s a lot more fun if you’re someone that’s watching this video and you’re under the age of thirty right now because i can tell you if time is on your side the compounding numbers are get to become so much easier
If you have time on your side and how you can start to build the money and start to build out these dividend stock positions just very very small positions to over ten year span 15-year span twenty years span to absolutely massive position so you absolutely have to have time on your side it’s it’s a really hard thing to pull off if you’re 45 plus years old you can
Pull it off but you’ll need a bigger amount of money to start off with or you’ll need a lot more money to funnel in stocks or you’ll just be in a position where you know you don’t get to that place where you’re have enough dividend income total maybe like you’re 70 years older so rather than imagine if you’re 20 and you start this by the time you’re probably 40 45
You have enough money coming in constantly from dividends that literally you don’t even need to work anymore about time you’re 40 and you can do what you want at that point in time okay so definitely guys i cannot reiterate this enough time has to be on your side to really make this work in in the full retrospect that you can have success in this guys while you’re
Young and it’s like i mean imagine you’re 40 and you don’t have to work anymore that’s real cool i mean either 75 you don’t have to work any more well that’s what is expected right you’re 45 and you don’t have to work anymore that’s a really cool thing guys let’s get into the last one number five and then we’ll get into the mechanics number five these last one so
Vital guys it’s discipline if you’re gonna pull off something like this that’s going to take you 10 15 20 years to pull off you need a lot of discipline you need a lot of focus on the long term you can’t get through and start buying stocks that are maybe grow stocks or something like that like if you’re trying to build a massive dividend portfolio then you need to
Stick to great dividend stocks you need to limit as much risk as possible in these scenarios okay now it’s not just discipline and within the stock market it’s discipline out of the stock market we talked about debt just a minute ago right making sure you’re not taking out a ton of debt because guess what if you’re taking out a ton of debt and you’re buying a new
Flat-screen with that or something like that right or a new couch and you’re taking out all this debt yeah you’re not gonna ever be able to funnel a lot of money into stocks it’s gonna slow your way down it’s undisciplined moves right things like having health insurance could also be a discipline move i mean imagine you have something happened to you essentially
Bad right health-related and you don’t have health insurance guess where you have to pull money out of you’re probably gonna have to pull it out of your dividend portfolio so it’s a vast amount of staying discipline in retrospect of like what’s going on in your everyday life as well as what’s going on inside that dividend portfolio guys if you’re gonna pull a move
Like this off okay now let’s start getting into the mechanics on how you actually pull this off already guys now that we’ve talked a bit about like what you need to pull something like this off we gotta talk about the mechanics oh how like how to actually do this okay so let’s assume in the scenario you’ve got like $5,000 socked away in savings okay you need to
Basically open up a brokerage account i if you have smaller amounts of money i would usually suggest like robin hood because it’s free to place your trade so you don’t have to pay that commission every time to buy and sell stock like a lot of the other brokerages out there okay so that would usually make sense for most folks out there you put the 5,000 in you know
Obviously make sure you’re comfortable investing make sure you know everything to look forward in stock and make sure you’ve actually done your research before you ever buy or sell stocks k otherwise you’ll end up selling it really bad prices you’ll make a lot of bad decisions if you don’t know what you’re doing okay so you put your $5,000 into some dividend stocks
You know a few out there you know maybe two stocks three stocks maybe up to five stocks if it’s gonna get $5,000 you could always do something like put a thousand in each one okay so one year is gonna go by roughly you’ll receive around roughly $200 depending on the dividend yields if you go super high yield you could get a lot more than $200 dividends but that
Might be a little more dangerous if you go low yield you might get less than $200 it really depends on what you’re looking for if you’re looking for for high-yield errs i always suggest kind of looking for the dividend stocks that you believe in the most for a long term because those are ones are gonna be able to up their dividends likely for years and years in
The future rather than just somebody that’s making a lot of money right now i’m paying out a huge payout ratio or something like that and then as we spoke about you got to always make sure you’re funneling money into your accounts so somewhere around a thousand dollars each month funneled into that account i feel like a lot of people out there could pull this off
It’s just you got to focus on that income and you got to focus on the expenses one of the two or focus on bulking those expenses down and getting your income up $1,000 a month put toward dividend stocks is certainly possible i’ve used to do it a quick trip all the time i used to do more than $1,000 i wasn’t doing it just toward dividend stocks i was doing it towards
Stocks in general and that was just an average job making 50 you know 60 k a year essentially and i was able to put at least $1,000 a month towards stocks some months even up to 2,000 plus dollars towards stocks okay and that was with paying bills no that’s going to leave you after a year one of with about seventeen thousand two hundred dollars in those dividend
Stocks okay your two goes by now you’re gonna receive about $800 in dividends roughly depending on the yields why because you generally the yields are gonna go up so if you buy stock abc and it pays let’s say three point nine percent yield right now you know lower let’s say in dollar amounts let’s say that stock pays 50 cents a share right now that’s a great dividend
Company they’re more likely gonna up that dividend each and every year so if it’s paying 50 cents this past year more unlikely this upcoming year they’re gonna bump that up to maybe 52 cents or 54 cents a share okay because most these great dividend companies they upped their dividends each and every year so what was an old dividend a 50 cents might now be 54 cents
Which might be in a year from now or you know let’s say 10 years in the future let’s go ten years in the future might be a dollar share at that point in time okay so yields gonna get bigger also your amount of money you have invested in these dividend stocks is a much bigger amount so the amount you’re going to receive in dividends it’s gonna be more substantial
So about eight hundred bucks you received you put another thousand dollars per month toward new dividend stocks or old dividend stocks it depends on what you want to go after if you want lower cost based on stocks that’s always a great thing if it’s a great company out there okay you’re always plenty of discounts okay so now after year two you have thirty thousand
Dollars in dividend stocks after years okay so you went from not much to a lot and basically a two-year span now going into year three you’re gonna receive $1,500 just in dividends now at this point okay $1,500 just in year three now imagine how much you’re gonna be receiving in dividends ten years down the road twenty years down the road like we could keep working
Out this chart and you get you’ll see like the numbers get really large i mean if you’re when you get down to like your 30 or so you’re looking at you know fifty thousand dollars or so you know forty to fifty thousand dollars getting paid out to you just in the form of dividends now imagine you start it when you were twenty you know and you’re fifty years old
And they’re receiving 40 50 maybe even more than 50 thousand dollars a year just in dividend income guys this is how substantial the amounts of money can get and you can see like like that is definitely possible to just invest your way through dividend stocks to basically get a huge income and then just you know have a situation where you don’t even have to work
Or something like that keep in mind you know any of these numbers these dividend yields and the amount of money paid you know if you hold this like imagine somebody buying into let’s say somebody bought into coca-cola stock 25 years ago the dividend was minuscule to now i mean the dividends probably 10x plus in that amount of time but yet what they bought the
Stock at was super low right think about like a procter & gamble what procter & gamble was paying for dividends you know 25 years ago was a very small amount compared to now did apple for instance apple didn’t even pay dividends up until about six or seven years ago so if you imagine buying apple stock you know prior to that period you weren’t even getting
A dividend now you’re getting this big dividend imagine how much apple is gonna be paying in dividend money out to their shareholders in the future okay so that’s something to take into account that i not a lot of people think about it’s just a mere fact that these companies that are great dividend payers consistently keep upping those dividends so you might have
Used to get a 5% yield but now you actually get like a 25% yield from where you bought that stock yet because the dividend money is so much and it’s coming in so fast guys so it’s something to think about there it is definitely possible you can definitely pull it off if it’s something you want to do guys so i hope you enjoyed this today make sure if you are got
That course in the past might become a master of stock marquart check that out there’s a new dividend investing mastery section in that course which is linked down there in the description we got a discount today guys thank you for watching and have a great day
Transcribed from video
How To Build a Dividend Portfolio so you NEVER have to WORK again Dividend Investing Stocks By Financial Education