Another month has passed us by and it is time for me to share the income that our portfolio has produced.
How would you define financial freedom?
Most would say “having a bunch of money” or “having a job that pays a high salary”
Well there are plenty of people who have had a bunch of money and now have no freedom at all…just look at the list of lottery winners who are now bankrupt. And I’ve met plenty of highly paid people who couldn’t give you a $20 dollar bill because they don’t have it.
Our road to financial freedom has us collecting assets that will pay us a dependable and growing passive income stream. Think about how great it would be to have all of your expenses covered every month by a check in the mail that you didn’t have to spend one hour of work on. Is it simple to do? Yes! Is it easy? No! or else more people would do it. It takes dedication, determination, patience, and delayed gratification.
That’s why we budget every month, track our spending, and find ways to reduce our expenses so that we can start adding large chunks to our accounts that hold these income producing assets.
Where are we now? We currently only own the shares of stock in 4 companies that pay dividends in August…Here they are.
Kinder Morgan Inc. (KMI) – $11.81
Starbucks Corp (SBUX) – $4.62
Realty Income Corp (O) – $10.52
STAG Industrial (STAG) – $8.13
Total dividends received in the month of August: $35.08
This is by no means a fancy get rich quick scheme, but instead a slow and methodical approach to building long-lasting wealth. The very large trees that I am staring at while sitting on my back porch were once little tiny seeds that grew and grew over time and that’s exactly what the August dividend represents for us. At some point in time these seeds today will allow us to pick and enjoy the fruit from full-grown trees without damaging the next years crop.
We want to control our time…time is our most precious commodity and we are all running out of it. Collecting assets that produce a passive income stream will allow us to use our remaining time anyway we choose.
We have now collected $510.71 in dividends this year…for doing absolutely nothing. Here’s a graph of the year:
You might notice that our 2016 August Dividend is lower than our 2015 August Dividend and that is solely due to Kinder Morgan (KMI) reducing their dividend payments last year. Do I like when companies cut their dividend? Absolutely not! The goal is to collect companies that can continuously increase their dividend payments year after year. I much prefer getting raises how about you? But, that doesn’t mean I have to bail on KMI, I think in the long run KMI will pay us plenty of cash and if not it is only a small piece of the puzzle.
That also means that we have now received $1,060.51 in total dividend payments since starting our portfolio in May of 2015.
It’s a steady climb up the mountain…who is going to join me for that spectacular view at the top?
Thanks for reading!