I remember my life as an employee. The military paid me twice a month for over 24 years. They used to call it “three hots and a cot.”
For the first 20 years, my only income derived from those two monthly paychecks. They increased yearly, but my expenses increased more than my pay raises.
Soon, the paychecks and the pay raises weren’t enough to “get me ahead” of my expenses. I was officially in the rat race.
Tycoon, Investor, Creator, Entrepreneur, Scholar
I remember thinking at some point in early 2019 that I couldn’t even take my family to Applebees without using a credit card. I love Applebee’s, by the way.
Then, I found dividends. My life was pretty bland because I couldn’t afford to spice it up. I had a wife and two kids to support and a house to maintain.
In June 2019, my wife and I visited her family in Didem, Turkey. Little did I know that this trip would change my life forever.
My wife and I saved for over a year to afford our trip to Turkey. Once there, I began to ask questions about how we could afford to live here permanently.
Becoming an Entrepreneur #4: Training vs. Education
I was 20 years into my military career in 2019. I was planning to stay in for 30 years. I knew my military pension would be roughly $10,000/month.
When planning for retirement in Turkey, I knew $10,000/month would not be enough. We had two kids to support, and traveling back and forth to the United States would wipe out a month of resources.
I knew we had to bring in more income, but getting a job in Turkey wasn’t an option. I had to dig deeper to discover how people could afford to live in a place without working.
While researching ways to make money without a job, I stumbled upon the words “passive income” and “dividends.” Those two words permanently changed my life.
Bond Investing in Your 60s
My obsession with dividends. I became obsessed with dividend growth investing and blue-chip dividend-paying companies.
I opened my first brokerage account, bought my first 30-year bonds, and started my high-yield savings account in Turkey in June 2019. I was on my way to becoming a capitalist.
My first months of dividend investing were terrific. I received my first dividend from Papa John’s for $0.23 in August 2019.
I stared at that dividend all month. In total, I made almost $15 in dividends in 2019. But let’s flash forward to today.
Homeownership Will Only be For The Rich
This month, November 2023, I made $415 on my Dividend Debit Card. That’s $415 that I didn’t have to drive to work or execute tasks to receive.
My Dividend Debit Card is only one of ten brokerage accounts my wife and I have. Together, we should earn roughly $1,500 in dividends this month.
What do I do with my dividends? The simple answer is “whatever I want.” I love getting my dividends and deciding how to “blow” them by doing nice things for my family.
My sons and I go to the movies religiously now because I use dividends to pay for the trips. After the movies, we usually take the family to a decent restaurant and order whatever we want.
Five Takeaways from “Create Something Awesome”
Can you imagine going to the movies and dinner with a budget of $300? That’s the magic of dividends. They will add much spice to an otherwise dull, by-the-numbers life.
In fact, my wife is in Turkey as I write this. I will join her in two weeks; my mom will fly to Florida to watch the kids.
We paid for all of these trips with dividends and options trading. If you want to live the life of your dreams, you’ll have to learn to be a capitalist.
Getting started with dividends. Before you start dividend investing, I recommend a change in mindset. It may take a while to grasp earning money outside of being an employee.
Retiring to a Small City and Living on Passive Income
The school system indoctrinated us to believe we must have a boss, resume, and job to earn money. It’ll take some time to believe you can make more money by doing less work.
The truth is that rich people have been living from assets for generations. We working-class folks have just begun to get access to the resources (brokerage accounts, fractional investing) they have enjoyed over the years.
But we will not get ahead if we don’t trust the dividend system. So, the best place to start is with your dream life. What is the life you want to provide for yourself and your family?
My dream life. I am living my dream as we speak. I wanted to be debt-free and cleared of all credit card nonsense.
Time is Money #3: Invest
Next, I wanted the ability to take my family to dinner without worrying about the tab. I also wanted to travel with minimal financial planning.
My wife and I planned our trip to Turkey in a week. We bought tickets with dividends and are using dividends while on the trip. Life is genuinely that good.
Now, I want to extend my dream life to my kids and grandkids. I want to ensure they understand how to leverage capital markets to give their family a great life.
Take the time to think of your dream life. Dream big. We have a problem with trying to dream realistically; however, dreaming big is how we achieve big.
Choose Between $100,00 Active and $50,000 Passive Income
Write your dream down, or create a vision board. I love numbers, so I dream with numbers in mind. I want to earn $20,000/month in passive income in the next five years.
You may dream of an annual trip to Hawaii, Bali, or Dubai. How about bringing in your family every Christmas? What do you want from this incredible life?
Start implementing dividends. Investing in dividends is a two-part process. There are only two ways to become rich: lower expenses and increase income.
Luckily, dividends can help with both. As you cut your expenses in half, use the additional money to invest in dividends.
Series “I” Bonds for Life
Your dividend income will now count towards your household budget. Your dividend cash flow will start small. You’ll be lucky to earn $100 in the first few months.
But, savor every dividend as a gift from higher. If you get $100 in one month, take your family to McDonald’s (MCD) or Papa John’s (PAPA).
Conclusion. The more you enjoy your dividends, the more you will continue to pour money into your dividend portfolios.
Common wisdom is to reinvest all dividends, but I have a different take. Find other ways to invest in dividends, such as renting a room or car.
LBYM: Live Below Your Means
Use that money to fund your dividend portfolio. Use dividends to support your fantastic lifestyle. With dividends coming in, you will be free to be the person of your dreams.
I took my family on a mini-shopping spree at an outlet mall a couple of weeks ago. I gave everyone $100 to spend, for a total of $400.
It’s not much compared to what they show on TV, but we enjoyed ourselves. That’s what life is about—the small victories.
If you want to be generous and kind without going into debt, you’ll need a financial vehicle to assist you. Dividends can be what you need to unlock your true potential. You can give your life a spicy makeover with dividends. Good Luck!
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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
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