Dividend Investing in Your 30s

I’m not going to lie; dividend investing will be tough in your 30s. Your 30s are the most expensive times in your life. 

Not only are you trying to get your (financial) act together, but add a family on top of everything. Therefore, the best way to invest during this time is to keep your expenses low.

Welcome back to the Dividend Investing at Any Age series (20s), where we put you on the fast track to earning passive income. 

Home Buying for the Average Person

Expenses are everything. Before we talk about dividends, let’s talk about the elephant in the room: expenses. 

In your 30s, you can quickly lose track of your expenses because you are adding new ones almost daily. You’ll upgrade your home, get married, and have kids. All these events will take a toll on your wallet.

The 50/30/20 (must haves, wants, savings) method is an excellent way to stay on top of your budget. You can read more about this budgeting technique in “All Your Worth.”

I also have some more resources on this busy time in your life. Please read “Real Estate Investing in Your 30s,” “Retirement Planning in Your 30s,” and “Staying Debt-Free In Your 30s.”

Time to invest. Now that we have our finances under control let’s start dividend investing. But where should we start?

Inflation Ate My Paycheck 104: Create Infinite Dividends

We can start by investing in index funds, dividend growth, and income investing, but which is the best in our 30s?

I am biased towards income investing because I want my money today. In your 30s, you’ll need more money than ever.

Yes, it’s nice to have index funds and a dividend growth portfolio growing in the background. However, you’ll also need money to help you at the gas pump.

Your employer matching. If you have an employer matching 401K, you’ll want to max that out every month.

This will be your long-term investment income towards your Happy Cash Flow Retirement. You’ll also want to ensure you build a nice emergency fund before jumping into income investing. 

Series “I” Bonds For You and I

What are my allocations? So, let’s say you have $600/month to invest in the markets; how do you allocate it within your portfolios?

If I have my 401K or Roth setup, plus my emergency fund complete, I am using a 10/10/80 allocation percentage.

The 10/10/80 represents index funds (10%), dividend growth (10%), and income investing (80%). Why do I put so much into income investing?

The magic of income investing. The magic of income investing is that if you don’t need the money that month, you can reinvest to build more income. 

Your Dream Job: Find It or Create It?

My wife and I earn $1,000/month in dividends currently. We reinvest about 80% of that income into more dividend-paying assets. 

However, this month, I moved from Okinawa, Japan, to Florida. I used my dividends to ensure a smooth transition back stateside. 

Yes, having a large number of index funds in your brokerage account is nice. However, this is static wealth—you’ll just look at it.

We want functional wealth—money we can actually use. As a family man of 16 years, with two kids, and three houses, I’m telling you that you’ll want a functional income stream in your 30s.

Always something new. In marriage, there is always something new. Either something breaks, kids need new clothes, or it’s time for a vacation. 

From Dirt to Dividends 4

Building a $1,000/month income investing portfolio will change your life. Heck, even $100/month will change your life. 

The American dream costs $5 million, so you’ll need to supplement your earned income with dividends. Chasing capital gains is a losing proposition in the long term. You may hit the jackpot once (Tesla) but miss the boat on others (DraftKings).

How to build an income portfolio in your 30s. To create a great income portfolio, first, focus on closed-end funds. I like PIMCO bonds funds as a good starting point (PDI, PDO, PTY).

Once you get the hang of income investing, you can add preferred shares and business development companies. Income investing can be risky if you don’t understand the business cycles of bonds and interest rates.

Mother’s Happy Cash Flow Retirement

Study hard every night, follow the markets, and remain calm. Nothing brand new is happening in the markets (that hasn’t happened before), so you must learn to ignore the news media. 

Aim for a specific income you want to generate—say $500/month. Then, you can grind towards that amount of money. I recommend starting your income portfolio inside M1 Finance. 

Income investing composition. M1 Finance has most of the CEFs you’ll need. However, it doesn’t have preferred shares. 

I like M1 Finance for income investing because you can deposit your $600/month into the pie, and it will spread the money across your positions. 

Struggle-Mania: 12 Reasons You Love Being Broke

I started my M1 Finance income portfolio late into my investing career, but I already love it. Of course, the markets are in turmoil right now, but I am buying exceptional yields. 

Fundrise vs. USDC

My M1 Finance income portfolio currently pays me roughly $70/per month. Again, I am adding $500/month into this account until it reaches $300/month in dividends. Then, I can let it manage itself.

Conclusion. Don’t forget to add your index funds and dividend growth stocks. These are your long-term wealth builders. 

The DGI portfolio will produce good income in 30 years, and index funds will be great transfers of wealth to your grandkids. 

Your 30s are all about cash flow management—you’ll need more money coming in than you’re spending. By way of income investing, dividends will help you get more money into your pockets.

Most retail investors are chasing capital gains with meme stocks and cryptocurrencies at this age. You’ll need to focus on the old-school way of making money, dividends. Good Luck!

1. PDF of the Month: Don’t Gamble with Retirement 7 (Free 424-Page PDF)
2. Free PDF Downloads: Download FREE PDF LIST here
3. Financial Mindset: Become CEO of Yourself 2 (Free 196-Page PDF)
4. Retirement Planning: Your Retirement Planning Guide 2 (Free 255-Page PDF)
5. Investing: How We Plan to Retire on Dividends 2 (165-Page Free PDF)
6. Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)
7. Real Estate: Financial Independence through Real Estate 2 (Free 123-Page PDF)
8. Business: Retire Rich, Retire Comfortable with a Business 2 (Free 185-Page PDF)
9. Latest DGWR: Don’t Gamble with Retirement 6 (Free 409-Page PDF)
10. Everything!: The Biggest Book on Passive Income Ever 2! (book)(Web Edition)(Art Edition)
11. I bought a Kindle Oasis: Check it out on Amazon
12. Read My Books for Free: Free Kindle Books Schedule
13. Crypto Exchange: My Favorite Crypto Exchange VOYAGER (Join Voyager)
14. Kindle Unlimited: Why I Finally Subscribed Kindle Unlimited (learn more)
15. Book Reviews: 505 Takeaways from 101 Books (pdf)
16. Writing: The Publishing Chronicles (Part 1, Part 2, Part 3, Part 4, Part 5)
17. Best REIT- Fundrise: REITs vs. Homeownership (Join Fundrise)
18. Follow us: On our Facebook Page and Join our Facebook Group
19. Support the Channel on Cash App: $Kingmarine1981
20. For more detailed analysis, join my Youtube: MFI YouTube Channel

Monthly Dividend Tracker Template: Buy on Etsy

Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.  I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing