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One way I plan to save more money this year (to buy more dividend stocks) is to take advantage of an increase in my monthly income. At the beginning of the year I made a few changes to my workplace benefit elections, which increased my take home pay.
Now there are about 100 different things I could spend this extra money on this year. My wife and I could spend it on the kids or buy a bunch of stuff that we don’t really need.
I think the best option is to use it to increase our income even more. We will do this by using the extra cash flow to buy more dividend stocks.
a Month to Invest
The net increase (after taxes) is an additional $50 per month in my paycheck. Since I did not have this income in our monthly budget before, I decided to use it to feed new investments in dividend stocks.
For those that may not have caught it – I have a goal to invest $8,000 to $10,000 in new capital into the market during the year. This extra savings will help me meet my goals.
Last year I invested $8,047.41 of new capital into the market and hope to increase that amount this year. The additional $600 from my extra income should help me build on last years success.
Savings Recap from Extra Income
- Savings Per Month – $50
- Annual Savings – $600
- Future Annual Income – $25.98
Annual Savings +$600
This year is all about saving more and investing the money for my family. Even $50 a month in savings adds up. An additional $600 this year (and hopefully next, and so on) will help feed new money sprouts.
My plan is to use these little pockets of savings and extra income to fuel my dividend income portfolio. I estimate this little chunk of savings will result in an increase in my annualized dividend income of $25.98!
Earning an extra $25+ a month in dividends may not seem all that great, but added up can really make a difference.
Annualized Dividend Income estimates are based on using my current yield on cost (4.33%).
What extra ways are you saving money this year to invest?