Sometimes when I’m flying back to Nashville, I can’t help but notice the other weathered business travelers, slouched over in their chairs, eyes glued to their cell phone screens. They look exhausted. Exhausted in a way that doesn’t occur from just a few nights’ lack of sleep.
As I contemplate how often they’re required to travel, I simultaneously wonder what kind of life is waiting for them at home. Are they well-compensated for their long work days? Do they have a family wishing that they were around more often?
Working like this really isn’t sustainable long term. At least, not for me. And part of what motivates me to invest is the desire to create more balanced life for my future self.
A Commitment To Saving
The only way to ensure that a specific amount of money is saved each month is to transfer that amount out of my checking account as soon as I am paid. I consistently pay myself at approximately 7:00 AM, the morning of the 15th, before there’s time to consider another way to allocate the funds.
If I go over budget that month, I’m borrowing money from the excess cash that sits in my checking account; If I mess with my monthly investment, I’m forfeiting future passive income.
Saving at least $1,458 per month this year hasn’t always been easy and there are constantly temptations to overspend. Like on an expensive therapist, taking an extravagant 30th birthday trip, or splurging on a fancy gym membership.
Are my sacrifices paying off? Let’s have a look:
In March, I earned $57.46 in dividends from my two Vanguard funds. If I receive a similar payout over the next three quarters, I’ll have $229.84 at the end of the year.
That’s $229.84 that I’ve earned without lifting a finger!
I’ve since purchased 45 shares of Coca-Cola (KO) and 58 shares of Kinder Morgan, Inc. (KMI). This month, I’m planning to purchase 54 shares of General Electric (GE).
All three of these badass companies will pay me quarterly dividends, so with each investment I make, I’m steadily growing my passive income. My day job, maintaining my house, this blog, and my basement Airbnb listing all require varying amounts of work. Work requires time and energy, resources that are finite.
Passive income provides freedom by replenishing these resources, freeing them for other, and presumably, more important things.
Readers: What motivates you to invest?
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