If you’ve been following along, I started this blog in March of 2012. I never expected to make this much progress but it’s great to start seeing results. I also didn’t expect to encounter a great community of like-minded investors to bounce ideas off. It’s also very motivating to me to see other people invest and reach their goals.
Well, with my latest purchases that I’ll mention next week with my weekly purchases article, I’ve reached a forward dividend income of $12,000. That means I’ll be receiving $1,000 on average each month over the next 12 months without any further capital being invested. This is certainly not enough to retire off of but it’s a great mental milestone to hit the $1k mark per month.
The beauty of dividend growth investing is seeing compound interest work its magic. It’s sort of like a snowball rolling down a hill. You may start with a tiny ball of snow but the longer that the snowball rolls (time) , the faster it rolls. It’s not just moving at a constant speed, it’s accelerating! The more snow it accumulates (dividend increases or new capital added) , the faster the acceleration.
This acceleration means you should hit $200/month just a little faster than $100/month and so on if you are keeping contributions the same.
Pretty soon you’ve got a snowball that will produce $100/month, $250/month, $500/month (posted June 2013), $600/month in dividends (posted Aug. 2013) and now $1000/month! Next stop , $1500/month (hopefully by late next year or early 2016).
The hill is very high but I am picking up speed. I can just start making out what looks like FI at the bottom! I hope to see you there some day!