My goal isn’t FIRE. But I would love to buy a home one day. Plus sticks bring a safety net. One I had around your dividend rate, I could do with a very low paying or parttime without changing my spending anything if I had do. So though I don’t aim as high as you, I think my goal goes into the same direction.
In the best case scenario I never need the extra money (apart from a home) and I have just more money when I get old.
After calculating what payout I could get, if I kept investing till retirement age and what payout rate I could achieve, I it’s a nobrainer.
Even though I know that I need to up my spending on some point (family etc) and have a lower monthly amount to invest, it’s even more motivation for me to have a kickoff start.
In the best case scenario I never need the extra money (apart from a home) and I have just more money when I get old.
After calculating what payout I could get, if I kept investing till retirement age and what payout rate I could achieve, I it’s a nobrainer.
Even though I know that I need to up my spending on some point (family etc) and have a lower monthly amount to invest, it’s even more motivation for me to have a kickoff start.
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@SchlaubiSchlumpf you are doing great! Believe me when I say that having the right mindset is half the win.
TBH I got lucky when I bought the first apartment (in Scotland), and simply thought, ok, we will be here for about 4 years and the rent we would need to pay is more than 25% of the price of the apartment. Thinking that even if the market drops by 25% in 4 years, we'd be breaking even (except the cost of the loan). So we bought it, but then saw that the extra two rooms could be rented out and that alone more than covered the mortgage. We weren't aware of that at this point, but of course we were very happy once we realized that. Still own that property and it now generates more than 7% dividend (net), while appreciating.
These deals are hard to find these days and sticking with the stock market is probably the best anyone can do. I like that you already look into dividend paying securities, as this will make that snowball gain speed much quicker.
I don't know what you are working, but generally speaking with time one can expect higher salaries as well, which should balance the higher cost of living when having a family and all the cost associated with that.
Happy investing, happy compounding!
TBH I got lucky when I bought the first apartment (in Scotland), and simply thought, ok, we will be here for about 4 years and the rent we would need to pay is more than 25% of the price of the apartment. Thinking that even if the market drops by 25% in 4 years, we'd be breaking even (except the cost of the loan). So we bought it, but then saw that the extra two rooms could be rented out and that alone more than covered the mortgage. We weren't aware of that at this point, but of course we were very happy once we realized that. Still own that property and it now generates more than 7% dividend (net), while appreciating.
These deals are hard to find these days and sticking with the stock market is probably the best anyone can do. I like that you already look into dividend paying securities, as this will make that snowball gain speed much quicker.
I don't know what you are working, but generally speaking with time one can expect higher salaries as well, which should balance the higher cost of living when having a family and all the cost associated with that.
Happy investing, happy compounding!
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@antifreund i am civil servant. In Germany you get fixed rates up. This would mean for me an up around 12,5% till the age of 50 (which Is 20 years to go). In addition you get paid a family bonus if you get married and have kids. It’s around 2% for a kid and 1% for getting married. So it compensates a little. If i am lucky i can move up one or two paygrades. But as engineer with masters degree i started out in a relatively high position. So there isn’t that much room. I’m not mad. I have other benefits as a hopefully high enough pension, secure income and so on. I’m hoping for at least one promotion eich would give me all in all 25% up with the age of 50.
Right now I am saving around 50% each month.
Right now I am saving around 50% each month.
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@SchlaubiSchlumpf Dude you are doing GREAT!!! Steady wins the race and being a civil servant in Germany has the added benefit of being an immensely secure job. Also you don't have to worry about retirement money as your pension is gonna be great, that is very different to many people. At 30 you are waaaaay ahead of the curve! Congrats.
DCA-ing 30-50% of your salary for the next 20 year will make you a happy retiree (https://www.marketbeat.com/dividends/calculator/).
Happy investing, happy compounding!!!
DCA-ing 30-50% of your salary for the next 20 year will make you a happy retiree (https://www.marketbeat.com/dividends/calculator/).
Happy investing, happy compounding!!!
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•@antifreund thanks appreciate your feedback 😊
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