How to Live off dividends from Investments

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For most people seeking financial freedom, the joy of living on dividends from your investments is what preoccupies your thoughts. You want to break free from the rat race, you want to earn enough dividends and enough passive income to live comfortably without having to work a single day for the rest of your life!

If you are this person, I am here to tell you, your dreams are achievable, they are possible, and several others are living this dream! Is it an easy feet to accomplish? no! but is it possible to live off dividends from your investments? yes!

Having established the fact that it is possible to live off dividends from your investments, let us delve deeper into some factors to consider when making this decision.

Things to Consider when attempting to live off dividends from your investments.

  • Your Cost of Living
  • Amount of Investments required

Cost of Living as a Factor if you are considering to live off dividends from your investments.

The first thing to do is to identify how much it cost you to live each month. By now you know that it is expensive to live, no matter where you find yourself in the world. Basic necessities such as food, shelter and clothing can not be ignored, but that is not all, unless you want to live a very frugal life.

Take a moment and calculate all you need and note it down nicely.

Average Cost of Living

ItemCost ($)/Month
Health Care550
Estimated Cost of Living for a Month

Depending on your lifestyle and location, these figures might vary. However, the figures you get, you can always work around it.

It is very important that people trying to live off dividends from their investments actually know how much it cost them to live. If you do not already know this figure, take the next 3 months and calculate exactly how much it cost you to live each month and strike an average.

5,070 dollars a month means that it will cost you 60,840 dollars a year to live. Knowing this fact is crucial for the next step.

How much Investments can yield this dividends

You know how much it cost you to live, that is splendid, now if you want to be able to live off dividends from your investments, you would need to make enough investments to cover up the cost of living.

If your dividend earning rate on your investments is 10% per annum, you need to invest not less than 608,400 dollars to earn dividends to retire, and if you want to live a truly comfortable life, you would need twice as much invested in other to live off dividends from your investments.

This is no small feat to achieve, for the average person this might take years. Fortunately, there are ways to speed this up! and you regardless of your financial situation can follow these exact steps below to achieve their goal.

How to Invest Enough Money to Retire Rich

  • Start Investing; The best time to have started investing was when you were born, the second-best time is today. Regardless of your financial situation, it is possible for you to squeeze a little money to invest in something that would yield you good returns.
  • Keep investing a lump sum from your paycheque each month, and keep reinvesting the dividends you make from your earlier investments.
  • Keep doing this until you reach that point where the dividends you earn from your investments are enough to make you retire rich and comfortable.

Practical Ways to Invest and Retire Living off Dividends from your Investments.

It is common knowledge that savings alone won’t give you any earnings. That is why at Dorla, we believe the only reason to safe is first and foremost to invest.

Our goal in attempting to get you retire and live off dividends from your investments is one that would require you to invest and earn dividends from not less than a million dollars.

To do this in 10 years, starting from zero invested, with a return rate of 10% per annum, the maths suggest that you need to invest each month an average of $5,000.

dividends from investments
dividends on investments

There are several factors that affects your ability to reach your target goal of investing a millions dollars to enable you live off the dividends from your investments.

Some Factors That Might Affect your Ability to Earn and Invest to Retire from Dividends of your Investments

  • Time
  • Your current Income
  • The rate of return on your investments


When it comes to investing, the earlier you start the better. A person who start investing $200 a month from age thirty, earning 20% profits a year, by age 50 would have over three (3) million dollars.

Investing from age to retire at age 50 from dividends
Investing to Retire from Age 20

On the other hand a person who started investing from age 30, with double the amount, thus $400 a month, earning equal rates of return would earn about $990,000 by age 50.

Investing to retire from dividends
Investing to retire from age 30

This two individuals are only 10 years apart, to account for his delay, the second individual double what the first individual was investing on monthly basis, and yet by age 50, he earns remarkably less! In fact he earns less than a third of what this individual earned!

Do you want to guess what happens to the person who started from age 40? Well, you guess is as good as mine, he tried but time wasn’t his friend.

When it comes to investing, time indeed is off the essence, I hope you started yesterday, if not, start now!.

Play with this investing to millionaire calculator to see how much you should invest to meet your goal!

Your Current Income

If you want to live off the dividends of your investments, you would need to invest, no matter how small your income, as we have demonstrated above, you need to be able to invest a portion of it each month in legitimate and trusted investments

It is important for you to make this a habit, and only spend what is left only after you have invested for your future. Pay your future self an amount each month, that you would be proud off, by investing and earning dividends.

Use this calculator, determine how much you want to invest, at what age you want to reach this target, and then choose the best investment platforms to start with your goal.

Rate of Return on your Investments

The rate of returns on your investment is one key factor that determines how long it takes you to achieve your goal of living off dividends from your investments. While there are several scandalous platforms out there that would provide you with extremely high returns? there are equally legitimate means to invest and make money either online or offline!

Be careful, and be sure to choose a great platform to invest, which would provide you great returns while equally ensuring the security of your investments.

You need an organisation that would outlive your very existence, this way you can retire peacefully living off dividends from your investments.

Some Investments Options to Consider if you want to Retire Young!


Mathew Wright Lead Forex Market Researcher

This Post Has One Comment

  1. Alex

    Awesome post! Thanks Mathew

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