The reinvestment report details how much money was reinvested back into the dividend business. The income streams that fund reinvestment are a part-time job, blogging, and dividend income.
Similar to how Apple stopped sharing their numbers when iPhone unit sales began to dip, I considered discontinuing the savings report when I began working part-time.
In short, it’s a risk because it’s difficult to predict how much income I’ll earn on average.
Fortunately, though, the income contributions from dividend investing and blogging have kept these reports going. Blog income helped in August, and dividend investing kept me in the game in September. Meanwhile, October’s report will see a spike in blog income again, as I just received a payment yesterday. I can’t wait to share on that next month.
Although savings is lower overall compared to when I was full-time, I am planning to continue the savings reports. However, they will be renamed as “reinvestment reports” instead, because I want to document how much money was reinvested into the dividend portfolio per month. That way it’s possible to read this blog and know how much money it takes to build a dividend income cash flow machine.
Strategy for increasing dividend income
My ultimate goal is to build a dividend income stream that covers expenses.
To get there with a part-time job, I’ve had to alter my strategy:
A percentage of each pay cheque is saved, which is divided equally between my RRSP and my TFSA. In addition, income from blogging is invested into my TFSA/RRSP. Those two income sources plus dividend income fund investment purchases.
Related post: Best Dividend Stocks 2019: 28 Stocks to add to your Watchlist
As for September 2019 – $195.44 was reinvested including dividend income.
$78.83 was reinvested from dividend income, and $116.61 was reinvested from savings through work. The Total amount reinvested was $195.44.
Although some blog income was earned during the month, it was not paid out in September. I’m only reporting income that was received, so that’s why it was not included.
As I alluded to in the opening of this report, I will report on how much blog income was earned in October’s report. I am looking forward to sharing the details now that I am relying on this income to fund my dividend investing.
This Savings Strategy will only work if I can grow blog and dividend income.
Of course, $195.44 is not an impressive amount of money to save for a personal finance blogger. It’s average at best.
But what if I build dividend income and blog income up over the next 20 years while still working part-time? By then I’d have a dividend portfolio, blog income, and a pension. And I’d still be able to retire early.
The point is—I have to find a way to increase blog income and dividend income to have more income to fund investing.
Reinvestment Report Concluding Thoughts
Yes, I’m saving less than half of what I was before. But if I’m enjoying more life while still at a younger age, this might be winning.
My hope is that blog income increases, my hours at work pick up in the winter, and that I continue to make the right investment choices. Over the long term, compound interest will work for me and I’ll be able to reach my dividend income stream goal.
I am not a licensed investment or tax adviser. All opinions are my own. This post contains advertisements by Google Adsense. This post also contains internal links, affiliate links, links to RTC social media accounts, and one outbound link to Tech Crunch.
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