11th Entry - Annual Report 2019
Finaly I have time to write this one. December and January are seriously busy months.
Lets get started shall we?
In Year 2019 I got 2.782,04 € Dividends after Taxes. That's a increase of 110% in comparison to 2018. That's quite alot, but I think this is only possible, because I am in the early stage of my investing Lifetime. From 2017 to 2018 it was 822% increase. So yeah, the growth will decrease with every year. And second factor is, that I know that there might be times, where I can not invest every month in the future, so I have invested strongly, while I could, in the last two years. The following years my growth in dividend won't be that huge anymore. Right now, I don't have much money left to invest, but I can tell you, it is better to invest early strongly rather than starting small and invest strong in the later stage. The more you invest early the better time will work for you (compounding etc.).
Also I want to say, that my strategie have slightly changed.
At first I wanted to invest a set amount of money every month to Johnson&Johnson. I don't do that anymore. I believe that every share under 4% dividend is not worth the money. Since in germany I have ~25% dividend taxes and inflation is around 2-3%. So yeah, I try to be around 4 - 6% dividend overall. Of course I do know, that most shares only have 2-4 % payout, but I see no point about a share with 4% Dividend growth and 1,8% Payout, if you can go straight to a Share with 4% Payout. You safe so much time.
Let's be honest here. Most people, who think about financial independence or just investing in stocks, are around 25+ to say 50 years old. So they only have around 15-40 years to build up wealth. Only in very rare cases some age 16 to 19 start investing this early. All this talk about, "wait 40 years and then be rich!" is very unrealistic or to long. I think 20-30 years should do it. I try to reach "being well off" around age 50 - 60. And if i don't make it, then i have to make some cuts. Being flexibel is a strength I guess.
I have to admit, having 2.700 € Dividends after Tax within 3 years is not that easy. I have made sacrifices to reach this point, but I can say in exchange for certain, that getting 100 € Dividend growth is very easy to achive. So within 3 Years every one should be able to get 300 € Dividends before Taxes. I am a very prime example that people don't need to know much. Pick around 10 Companies you would to like to invest in and stick to them. Maybe you will make some changes like I did, but stay true to your goal. I am very excited to see where I am in 2 years and 7 years. I even have made a bet with a friend of mine, that we both try to have 100.000 € value within 5 years. My friend earns way more money than me, so he should be the first one to achive it, but this isn't about loser and winner, but rather a bet that both of us are winners, if we make it.
I hope I could inspire someone to start investing. Do not be afraid, money can always be earned again. And do not forget to have fun in your Life (early, mid and late stage!), cause Life is short.
If you want to your share own story, you can write me on Facebook!
That's it for today, see ya next time!
Lets get started shall we?
In Year 2019 I got 2.782,04 € Dividends after Taxes. That's a increase of 110% in comparison to 2018. That's quite alot, but I think this is only possible, because I am in the early stage of my investing Lifetime. From 2017 to 2018 it was 822% increase. So yeah, the growth will decrease with every year. And second factor is, that I know that there might be times, where I can not invest every month in the future, so I have invested strongly, while I could, in the last two years. The following years my growth in dividend won't be that huge anymore. Right now, I don't have much money left to invest, but I can tell you, it is better to invest early strongly rather than starting small and invest strong in the later stage. The more you invest early the better time will work for you (compounding etc.).
Also I want to say, that my strategie have slightly changed.
At first I wanted to invest a set amount of money every month to Johnson&Johnson. I don't do that anymore. I believe that every share under 4% dividend is not worth the money. Since in germany I have ~25% dividend taxes and inflation is around 2-3%. So yeah, I try to be around 4 - 6% dividend overall. Of course I do know, that most shares only have 2-4 % payout, but I see no point about a share with 4% Dividend growth and 1,8% Payout, if you can go straight to a Share with 4% Payout. You safe so much time.
Let's be honest here. Most people, who think about financial independence or just investing in stocks, are around 25+ to say 50 years old. So they only have around 15-40 years to build up wealth. Only in very rare cases some age 16 to 19 start investing this early. All this talk about, "wait 40 years and then be rich!" is very unrealistic or to long. I think 20-30 years should do it. I try to reach "being well off" around age 50 - 60. And if i don't make it, then i have to make some cuts. Being flexibel is a strength I guess.
I have to admit, having 2.700 € Dividends after Tax within 3 years is not that easy. I have made sacrifices to reach this point, but I can say in exchange for certain, that getting 100 € Dividend growth is very easy to achive. So within 3 Years every one should be able to get 300 € Dividends before Taxes. I am a very prime example that people don't need to know much. Pick around 10 Companies you would to like to invest in and stick to them. Maybe you will make some changes like I did, but stay true to your goal. I am very excited to see where I am in 2 years and 7 years. I even have made a bet with a friend of mine, that we both try to have 100.000 € value within 5 years. My friend earns way more money than me, so he should be the first one to achive it, but this isn't about loser and winner, but rather a bet that both of us are winners, if we make it.
I hope I could inspire someone to start investing. Do not be afraid, money can always be earned again. And do not forget to have fun in your Life (early, mid and late stage!), cause Life is short.
If you want to your share own story, you can write me on Facebook!
That's it for today, see ya next time!
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