Last Thursday, I did my very first podcast with Nibin Thomas from Lyfe Happens. This is a big deal to me and should be to some of my loyal readers and subscribers as well because some of you have never met me in person or heard me speak. I would definitely consider myself to be a much better writer than a speaker. However, like I explain in the podcast – you can’t always play safe and hide. At some point of your life, you need to do things that you are most uncomfortable with. I am confident I will be as good as a speaker in the near future.
I had a great time chatting with Nibin and spoke about how I want to be a millionaire when I turn 45 which I have never mentioned in my blog. Hypothetical situation but I use an example of buying 18, 000 RBC (Royal Bank of Canada) shares for $98.50/share which would cost me around 1.7 million dollars. The dividend yield for RBC is 3.53%, which means I would be earning $62,586 just off dividend income. Most Canadians work like a dog every year and make less than $62,586. Full disclosure: Today, I make less than $62,586. I work as a nurse. Here’s another confession: I don’t even have six figures in my bank account as I type this blog. But, time is on my side and I am sure the magic of compound interest will help me immensely. Personally, I started investing only 25$ every month with TD Bank’s e-Series index fund (Fund code – TDB900). Then, I increased it to 50$ every month. Today, I invest 100$ bi-weekly to my fund which is not too shabby. I am only 28. Ewwww 30 in 2 years. YUCK! Random but I have been told several times that I appear 21 or 22 rather than 28. Maybe because I am short and have fabulous skin. IDK. Anyways, I have been disciplined and investing for almost seven years now. Though my dividend income is not $62,586 today (I WISH xoxo), I smile as I collect my dividends every December. Fun fact: My dividends have been increasing every year for the past 6 years.
The beauty of dividend income is you pay less tax. Person A making a salary income of $62,586 will be taxed around 35% but person B earning the same amount from dividend income would be taxed only 15%. This is an excellent example of money working for you and I have said this before but I want to say it again because it is so important to understand. At some point of your life, you have to let money work for you. The earlier the machine starts, the better. You can’t keep working for money. You can’t be a slave for your money forever. I repeat, make money your slave by investing. Despite the risks, if we are to have any chance for meeting our long-term financial goals, INVEST we must.
Now, I am aware a million dollar is a lot of money and it will be very challenging for me to make my net worth seven figures. However, 45 – 28 = 17 years. 17 years, that’s a long period of time. Too many of you are scared to tell your goals but you should not. We need to get honest with ourselves and only then; we can work to achieve our goal. Of course, if everything doesn’t go according to plan, I might not be able to reach my goal. So, be it. I am more than okay with the trolls, criticism and people taking shots at me. No problem. At least, I can say I tried. The cost of trying something or going after your goal is less than the cost of doing nothing. So, TRY peeps (Smile). Talk to J.K.Rowling, Bill Gates, Oprah, Robin Sharma, Elon Musk, and Denzel Washington. They will be happy to fill you in their long string of failures. Enjoy the podcast.