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So you are in a place where you want your money to work for you. Over time the compounding interest you earn today can help you live jobless into the future. Let's begin saving and investing as soon as we can so we have something to work off of in the future. Maybe it's retirement or maybe we want a house down the road. Believe it or not time waits for no one and eventually, you will have bills. If we start early enough we can work less in the future and have more free time to do what we want. Let's dive into some investment stocks that pay dividends and with a healthy amount can allow us to earn passive income.
This is a stock that pays 3.55 percent per share on the amount you have invested with them. Each Coca-Cola share costs $45.65. So 3.55 percent of that would be your return, but that would be broken down into quarters, meaning it is paid every three months. So $1.62 per year. Not bad, but you will want to scale it up if you're ever going to live off this amount. Imagine owning $10,000 worth of shares. It would pay nearly $330 per year. You could really do a lot with this money and you could add to it over a lifetime to build enough to live off.
This stock costs $116.17 and pays a dividend of 3.3 percent. Soon every $1,000 dollars you would make $33. Not bad for a passive income. But let's be realistic, that's not going to allow you to quit your job. Maybe $400,000. This would pay you $13,200 per year. You could live off that. So your goal should be socking away some kind of money over the length of your life so you can live off dividends.
Johnson & Johnson
This stock pays nearly 2.7 percent per year, sometimes more. The price of the stock is about $138.48. They own a lot of products and I do not see this company going anywhere anytime soon. It is a rush when you receive your first payment from them too. Imagine your money working for you so you do not have to work. It takes baby steps and you can achieve this.
To find more stock picks I highly encourage you to do a quick top dividend-paying stocks to search into a search engine. Diversification is the most important thing when it comes to investing. As the saying goes you do not want to keep all your eggs in one basket. So spread it out. Build it today and live off it for the rest of your life.
All in all, you won't be able to supplement your income overnight, but there are a few things to keep in mind. One day you're going to wake up and not have anything saved or invested. It may be nicer that you have this chance to do it now. When you're young enough and able to still work for a living. If you think you need money now wait until your 65, no longer fast and willing to work as you were when you said 19 or 20.
Maybe it's just one hundred dollars here and there but over time as your interest earned compounds it really can add up. Let's just do a scenario.
With compounding interest, let's say you start with 1,000 and put in 100 per month until you retire. Say 30 years from now, that would amount to a total of $72,280.16. Now $25 a week is not much to save, so say you multiplied it by four now you're socking away $100 a week. Guess how much. It's $280,458. Now that for me is enough to live off at my current expense level.
I know you may not think it will be worthwhile or you're losing that money. But the truth is it will feel way better for you when you have enough to live off and do not have to work anymore. So start now and by 50 and it will come sooner than you think, you will have enough to live off.
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