I love writing about dividend income; I wish I could inspire everyone to try it out! I promise you it isn’t as scary as it sounds 
Consistency is key when it comes to building dividend income. Slow and steady will win the race in twenty years time, it should be paying us a decent income for doing nothing. What could be better than that!?
See also: Dividend Income
Eventually, the aim is to use the dividend income to pay some household bills. Things like council tax, or water rates. That’s when passive income really takes over. We are such a long way off this! To pay fixed expenses each month from passive income would be amazing.
To be able to pay for things that we have no control over, such as our council tax or the water rates, by using dividend income would take the pressure off other areas of money. One day, I am hoping to say we can do this. Imagine how much freedom we’ll have then
In fact, I’m sure we will be able to at some point, if we continue on the same path. It will be so exciting when we get to pay our fixed expenses with passive income. That’s the dream, right there 
In fact, I am aiming to have £1,000 a month on average to ensure this. Of course, some months pay out more than others but an average of £1,000 a month would be great. However, as you’ll see in a second, I am so far from this 
There are always going to be swings in terms of how much income is produced by dividends, just because different holdings pay out at different times. Slow and steady wins the race. I am never going to be able to invest huge amounts, so this is something that will take time. In fact, our budget seems really stretched at the moment but I am continuing with the plan and hopefully it will work out in the end.
Dividends received in July:
- GlaxoSmithKline – £58.90
- Pets At Home – £16.50
- Tesco – £6.07
Total: £81.47
Another month which is getting closer to three figures! That’s exciting 🙂 this would pay for our water rates plus both mobile phone bills. Paying our fixed expenses is the long term aim. At the moment, all dividend income received is reinvested. Because my holdings are within my stocks and shares ISA with Hargreaves Lansdown, I don’t pay any tax on them either, as they are inside that tax free wrapper. I would recommend Hargreaves Lansdown as a provider; such an easy and simple website to navigate.
As I wrote about the effect of the magic snowball, mine is beginning to move slightly. By reinvesting the dividends, it’ll only create more income. I believe that continuing to live a frugal lifestyle and save as we go along will see us right in the end. I hope this is inspiring someone else to begin their frugal journey. If we can do it, anyone can. If you are wanting to know about frugal living, then here are 30 easy tips to get you started.
My dividend income aim for 2021 is £2,000 received. As of now, I feel like this is a massive aim for us; it’ll be tricky to reach but I am going to continue to invest with my strategy and hope. To get that means an average of £166 a month, which as you can see I’m a bit off. At the end of the seventh month, I have received £673.86 so I’m still so behind. We’ll see what the rest of the year brings. December tends to be the biggest payer during the year so it leaves it all til the final hurdle, so to speak!
Have you received any dividends this month? Thanks for reading!
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Is dividend income a better way than say withdrawal rate or is it much the same? Only four years into my pay off debt, invest, save and minimise non essential (but not value add) costs.
They are much of a likeness in the end; you are getting an income either way 🙂