Setting Dividend and Other Financial Goals

The Passive Income Earner just put out an excellent post about maintaining ambitious financial goals as you grow older and hopefully more affluent. Although no one's income throughout life matches a perfect arc, hopefully you're making more money when you're 35 than when you're 25, and hopefully you're making more when you're 55 than when you're 45. And it's easier to let the increase in income lead to you consume higher-end items and allow lifestyle inflation to creep into your life. While there is nothing wrong with this per se, it does not allow you to build passive wealth via dividend paying stocks. Instead of allowing yourself to spend $200 more on frivilous crap as your salary grows, get in the habit of constantly putting money aside and building wealth via dividend stocks. If you can get just 3% annually from your dividend stocks, that means that each $200 contribution will throw off $6 in income each year while you sit on your rear end, not touching your principal investment for the rest of your life. If you can get in the habit of regularly collecting this $6 for life annual income streams, and do this year in and year out for several decades, you will wake up one morning to find yourself quite rich. If you want to read the great piece at The Passive Income Earner, be sure to visit the site here: http://www.thepassiveincomeearner.com/2011/06/financial-freedom-at-45.html .