I’ve Won The Lottery!

lotteryWell, not really.

Let’s back it up a bit.

In late 2009, I was broke. Actually, as I often point out, I was less than broke. I was worth less as a 27-year-old man than I was as a baby.

Think about that. I received an education. I had multiple jobs. I earned thousands of dollars over the course of my lifetime up until that point. Yet I somehow managed to be worth less 27 years into my life than I was when I started.

Yikes!

Lottery Money

Back then, the thought of hundreds of thousands of dollars in my bank account was nothing more than a pipe dream. That was “lottery money”, as in the only way I could possibly attain that kind of wealth (especially at a relatively young age) was by winning the lottery.

So I was at a crossroad, if you will.

I could spend what little excess money I had at the end of every week on lottery tickets, hoping that I’d somehow beat the odds (which are incredibly stacked against those playing the lottery) and win a huge jackpot.

Or I could do what I did instead.

I Changed My Life

I moved across the country to take advantage of a better economy down in Florida (relative to Michigan at the time), no state income tax, better weather, and higher pay.

I later sold my car – taking advantage of the great weather down here which makes riding the bus easier – and cut expenses across the board. I was able to start saving more than half of my net income, something I achieved for four years straight.

And I took that excess capital and started investing in high-quality companies that reliably and regularly pay and grow dividends to shareholders, thus creating a whole new source of ongoing and increasing cash flow.

The combination of maintaining low expenses by avoiding lifestyle inflation and living below my means meant any increase in cash flow, which was achieved via raises at work and growing dividend income, went purely to the bottom line, accelerating my ability to grow cash flow even more. Thus, any increase inย cash flow was used to create even more future cash flow. Success begets more success.

Winning The Lottery

And success begets more success until you’re all of the sudden incredibly successful. Now, it doesn’t happen overnight. Saving and investing your way to financial independenceย can be tedious at times; it’s certainly not a get-rich-quick strategy.

But it is a strategy that allows you to get wealthy over time if you stick with it and stay consistent.

How do I know that?ย 

Well, because I’ve won the lottery.ย 

I’m basically sitting on lottery money, as my portfolio nears $200,000 and should generate more than $7,000 in dividend income this year.

Just a few years ago, I couldn’t imagine controlling that kind of wealth. But it’s now my reality. I can wake up in the morning, log in to my brokerage account, and see that I have almost two hundred thousand dollars. It’s absolutely insane!

Look, I grew up in a poor house filled with drug activity on the east side of Detroit. My father left us when I was eight years old. My mother, heavily on drugs, effectively left us as well, giving up control of us just a few years later. Nobody ever taught me about money. In fact, I never thought I’d have any kind of wealth at all in my life. And I was proving myself right all the way into my late 20s.

But I woke up one day. I got my act together. And I’ve since effectively won the lottery in the form of controlling a similar amount of wealth. However,ย I didn’t even have to gamble a dime.

Reaping The Rewards

And just like winning the lottery all of the sudden would dramatically change my life, I’m currently reaping the rewards that a relatively substantial amount of money can provide.

I left my full-time job in the auto industry last year to focus fully and completely on writing. You often hear about how people are going to quit their jobs when they win the lottery. Well, that’s basically what I did!

But I could never have done that without the level of freedom that hundreds of dollars in monthly dividend income and almost a decade worth of expenses sitting in my brokerage account could provide.

Even better, the habits that got me here in the first place means I’m especially well-equipped to keep the wealth and grow it. Whereas it’s common to hear about lottery winners that end up broke just a few years after winning a jackpot because they lack the good habits necessary to sustain wealth, building your own wealth to lottery levels from scratch means you’re in a wonderful position to continue down the path to greater wealth and freedom.

Conclusion

By not throwing awayย my money on lottery tickets with incredibly longย odds, I’ve been able to circumvent the waste and continuous disappointment of losing week after week. And by living below my means and instead using that capital to purchase high-quality stocks that pay and grow dividends, I’ve ended up effectively building my wealth toย lottery-level proportions.

The odds of winning the lottery are incredibly low. But the odds of achieving similar wealth, and the financial independence that this kind of wealth can buy, by simply living on less and intelligently investing your excess capital are incredibly high. Anyone can do it. I know that because I’ve done it, and I continue to build my wealth to even higher levels. I’m a guaranteed millionaire at this stage.

Put the odds in your favor and end up with lottery money!

What do you think? Have those of us that are already well down the path to financial independence already effectively won the lottery?

Thanks for reading.

Photo Credit:ย Prakairoj/FreeDigitalPhotos.net

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143 Comments

  1. Dave Ramsey talks about the concept of winning the lottery every single time, when you invest with a plan and stick with it. Those that actually play the lottery will be stuck in a daydream land of millions of dollars, but with nothing to their name. The young in their early thirties and younger have a high probability of becoming wealthy with minimal investment needed. I’ve been drilling the concept into my kids (10,8,2) about the power of compounding and dividends. We start with a few easy ones like KO (they see the stuff being sold and people drinking it), DIS (we go to the parks, watch the movies, see the products, watch ESPN). When I see other people using products they have a vested interest in I remind them that those people have just sent you a small amount of money. Powerful stuff!

  2. There is a popular Korean saying, its pronounced “Cha-muh”, and what it means is “to endure”. As you said before, success begets success. Much of those success comes from enduring, forgoing present pleasure for something greater later. I think many of us can learn a thing or two simply by practicing to “cha-muh”
    keep up the great work!

  3. Hm, Iยดm not sure because untill you havenยดt reached FI you are still on the journey. OK, I see that saving money will get me more money every month. And usual as you stay consistant it is the normal way to get wealthy, if nothing really unusual happens. And this could be. On this side you really have an advantage with your fund and if your fund is big enough, you can work with probmes coming along like sickness, losing job, familiy problems whatever. So it can be an insurance. If nothing happens and you are saving every month a good amount you will get FI by 100%.

    But regardless the problems you may face you have a huge advantage opposite the lottery winners: You have learned how to compound money. A lottery winner normally has no idea about money and normally there are lot of people who think they should get money from the lottery winner. So compounding money is much more convenient as you know after a while how to handle with money and as you are not getting quickly rich there are no “good friends” who mention that you should invest them because you have a ton of money. On the other hand the amount of the fund isnยดt that important for me. Only how many dividends I will get. Itยดs surely nice to see if four fund is growing and you have on your account after 10 or 15 years something like 500.000 – 1.000.000 $. May be motivating. But if you get one day every month 2.500 $ for example is really that, whats count. And this will be the amount you are living off and with that you probably (surely??) donยดt live like a person who won the lottery and buying big houses, big cars and lot of bunnys… itยดs quite different for me.

  4. DM,
    I feel that way a lot of times too. Born in a great country where wealth can be created with the right knowledge; married the perfect girl; have great kids; building a nest egg that should allow me to retire and travel the world. Life is good! That’s easy to forget sometimes. Inspirational piece.
    -RBD

  5. Great piece, DM. Its amazing what one can do by learning and putting the knowledge to work.

    R2R

  6. I always think about the odds of winning the really big multi-million-dollar lottery like this: You are driving on a several miles long road parallel to a sandy beach. You decide to stop somewhere, park the car, get out on the beach and grab a fistful of sand. You shake your hand until there is one corn of sand left in your hand…

  7. David,

    Yeah, I think your point there is great. That’s something I discussed on a podcast a little while back. One doesn’t need to have some kind of intimate investment knowledge to get started with dividend growth investing. Just by looking at the world around you and seeing what kind of products/services that people are consuming puts you in a great spot to get started. Many of the greatest companies are consumer facing, so you’ve got a big head start there.

    Hopefully, your children really grasp the concepts. They’re at least in a much better position than I was at that age, as nobody took the time to discuss really much of anything with me. I’m sure they’ll never forget those lessons. ๐Ÿ™‚

    Cheers!

  8. DM,

    You are so right, about being a winner. Even more so an inspiration, and definitely one of the better writers out there that got me into the mindset of DGI and living smarter. Thanks for the article, the advice, and updates you give.

    – Gremlin

  9. olli,

    ” On the other hand the amount of the fund isnยดt that important for me. Only how many dividends I will get.”

    Absolutely. And that was part of the point I was making. If you go out and win $200,000 in your local lottery and invest it, you’ll be effectively receiving that ~$7,000 or so in dividend income, which then buys you a good chunk of freedom all in itself. So it’s not really the portfolio value, but the income that money can buy. However, you have to have the capital to start with. The dividend income doesn’t just materialize out of thin air. But once you have the habits in place that got you there, it’s very likely you’ll continue down the path. And that success begets more success. ๐Ÿ™‚

    Cheers!

  10. RBD,

    Couldn’t agree more. Luck plays a big part in life, maybe bigger than we like to admit. I know that even though I had a rough go of it in a lot of ways, I’m extremely lucky to have been born in the US in the early 1980s. Much better than being born pretty much anywhere a century or more ago. And much better than being born in a lot of different places in the world even today. So I’m incredibly lucky.

    Thanks for dropping by! May our good luck continue. ๐Ÿ™‚

    Best wishes.

  11. R2R,

    Thanks!

    Indeed, a little hard work goes a long way. But the good news is that anyone can work hard. You don’t need to be particularly special to succeed with this. ๐Ÿ™‚

    Best regards.

  12. Sensim,

    Yeah, the odds are incredibly long. I’ve read some comparisons and I think you’re more likely to get struck by lightning twice than you are to win the big multi-state lottery worth millions. You’re also more likely to die by a vending machine or become a movie star. Better start learning your lines! ๐Ÿ™‚

    Cheers.

  13. Gremlin,

    Thank you. Really appreciate the kind words and support. ๐Ÿ™‚

    I’m doing my best to continually inspire through my words and actions, so it means a lot to me that a lot of people out there find value in that.

    Best wishes!

  14. Great post Mr.Mantra. I commend you for making the best of the circumstances givin to you. There’s only success from here on out because discipline affects all aspects of our lives. You’re doing incredibly well and I wish you continued health wealth and happiness. Keep up the great work and I’ll be travelling alongside you Jason. Much respect and love to you.

  15. IMHO you’re already rich. You live minutes away from beaches, you have your health, your friends, you have a lovely wife, a sweet little dog, a step-son, you work at a job that you love and you can do it from anywhere, you have a family that cares about you back in Michigan. You’re living the American Dream. You have already won at life.

    I think you won the lottery by getting an awesome aunt and uncle. I’m happy to hear that your aunt and uncle got to you and your siblings at the right time and rescued all of you from a terrible situation. Traditional media these days is full of despair and how impossible it is to make it so I enjoy reading your blog and following your journey. I read so many blogs, books on success the thing is that a lot of this advice is inspiring, idealistic, and doesn’t really tell you how to put a plan together.

    Most of the stuff out there is full of “hot air” but you show how you did it and outline the steps, now other people can follow that path. You’ve inspired me to learn about investing and get started. You have also shown me that investing is not just for those that are born into money but for anyone who is willing to learn and willing to get started. So 7,000 that’s almost about halfway to 15,000. Isn’t 15,000 the amount you want to live on?

    Anyway I can’t wait to see your progress! ^_^

  16. DM,
    I feel like I too have a better chance of hitting it rich thru hard work, frugality and investing than betting on lottery. The probability is there, I just knew I can’t rely my future on a piece of paper hoping to be the next jackpot winner. Truly its better than hitting the lotto!

    Take care,
    FFF

  17. Great points. Some friends were talking last weekend about what they would do if they won $50,000. Everyone thought my plan for investing it was really boring. They didn’t want to look at the big picture. They just wanted to spend it right away. I had fun figuring out which companies I’d buy.

    And I’m glad you include links to previous posts. I just read “The Long, Arduous Road to Financial Independence” from October of 2013. It was exactly what I needed and I never would have found it without the link.

  18. I definitely feel like we’ve won the lottery. We live in a country where just about anything is possible. It still amazes me whenever I look back through some of my old posts or through my spreadsheets and I can’t believe the progress that’s been made in a relatively short amount of time.

    I used to wish to win the lottery thinking that it’s the only way to truly be “rich” enough to not have to work. But I now realize that’s not necessary. Sure I’m not going to amass $100 million or anything through saving/investing but I don’t need that much either. Although I do have to admit that I’ll still play when the jackpots are up over $200 million just in case I happen to get lucky. I doubt it will happen but it’s a small vice that’s a bit fun to think of the possibilities. Plus at this point it’d just be a boost rather than a crutch.

  19. Hi Jason,

    Your story is truly inspirational and your blog is in my opinion the best blog I have stumbled to. I’m now getting about 700 โ‚ฌ in dividends annually and eagerly waiting to be able to invest that money and my savings to good quality companies. It almost feels that I too have won the lottery by getting good habits in using money and investing. Great article, thanks for sharing!

  20. Lila,

    Thank you for the very sweet comment. ๐Ÿ™‚

    I’ve definitely “won the ovarian lottery” in some ways, as Buffett puts it. Just being born in this country in the time period I was puts me ahead of most of civilization that’s ever existed and that which also currently exists. So I’m grateful for that, even though my specific childhood wasn’t ideal. But I am living a dream. Waking up to the bright Florida sunshine every day and then sitting down and working on things that I care about is just really a dream come true. I’m blessed in so many ways.

    Unfortunately, I had a falling out with the family there. Some of the reasoning I’ve described on the blog, some I haven’t. But I found out that my aunt and uncle weren’t quite who I thought they were, which is really disappointing because I kind of made them out to be guardian angels (they were to me). Nonetheless, I’m glad they took me out of Detroit. It’s certainly plausible I might not be alive otherwise.

    Thanks so much for the support, though. It’s much appreciated. I’ve won the lottery in many, many ways. And certainly having a great readership which includes you is part of that.

    As far as your last question goes, my target income level is $18,000/yr. Of course, it’s difficult to say exactly how much I’ll need seven or eight years from now, so it’s a moving target. But I think it’s reasonably close.

    Best wishes!

  21. FFF,

    Great point! Not only are we basically winning the lottery, but we’ll appreciate it much more because we’ve worked for it.

    I blew an inheritance when I was 21 years old. No doubt that part of that was because I didn’t appreciate the money. I certainly now appreciate every red cent. ๐Ÿ™‚

    Thanks for dropping in.

    Cheers!

  22. SR,

    Glad you enjoyed some of the old posts. I’ve grown as a writer, but the message hasn’t really changed. ๐Ÿ™‚

    Some people will never understand this. And that’s okay. Takes all kinds to make the world go round. But if there’s any way you can invoke change (if that’s what you want), it’s to be the change you want to see.

    Best regards.

  23. JC,

    Definitely. It’s really crazy to think about the progress thus far, as it hasn’t really been all that long. It doesn’t take but a few years to radically change your life forever. Really amazing when you sit down and think about it. ๐Ÿ™‚

    Hopefully, you’ll hit the jackpot some day. Don’t forget us small folk if you do!

    Cheers.

  24. Sampo,

    Thank you. Really appreciate the support and readership very much.

    You’re on the right path. Success begets more success. Thus, 700 euros begets 1,000 begets 1,500. So on and so forth. Stick with it! ๐Ÿ™‚

    Best wishes.

  25. Hey DM,

    By the title of your article I thought youd’be writing about the special dividend of $16.50 the new Kraft Heinz Company announced they will be giving to actual Kraft shareholder. It’s a little bit like winning the lottery, no?

    Heck, I even took an early start and decided to add to a position I already had (http://www.monsieurdividende.com/2015/03/recent-stock-purchase-acox.html). Why not? I might as well make that $825 (50X16.50) work right now!

    Your story is TRULY inspirational. And I think it’s part of the reason why a lot of people visit your blog. Yesterday I was out a the local pub and the manager, who’s around 40, was talking about money and so on. Basically, he had 5 K$ in his bank account and not much else. He was saying it was hard to save with his 40 K$ salary… And I thought about you. Surely this guy isn’t putting the effort because he could easily have put 50$ aside every two weeks. That’s 1 300$ a year…

    I guess it has a lot to do with discipline and knowledge at some point. If you know how to word yourself around in the stock market and have the will to save enough to make it happen, then things will fall into place — with the little help of compound interests.

    Keep up the good work! The odds are on your side.

  26. Jason,

    I really enjoy reading all your articles. You talk about how your dividend income allowed you to write full-time. Does that mean you are using that income to help cover living expenses? Or are you reinvesting the dividends (and you always have that money as a safety net)? If you aren’t reinvesting, doesn’t that limit the compounding that is so important to building long-term wealth?

    I like the theory of building a portfolio large enough to live off dividends, but I just think it severely limits growth if you can only partially support your lifestyle with dividends and always have to supplement with another gig. Won’t it take much longer to reach full financial independence if the dividends are used to pay utilities, buy groceries, etc instead of being put back to work?

    – NewToDivs

  27. MD,

    Yeah, KRFT shareholders won a little miniature lottery of their own, didn’t they? Reminds me of my holding in HGIC that went up like 85% overnight way back in the day. ๐Ÿ™‚

    That’s a shame there about the pub manager, but it’s unfortunately common. I’m doing all I can to show that there’s a way to financial independence on modest means, but a lot of people just don’t want to change. Such is life. All we can do is live our lives in the best manner possible and, if we want to see others change, be the change we want to see.

    Thanks for the support!

    Best regards.

  28. DM
    I hit the lottery when I met my future wife in 1978, and married her in 1984 I have been collecting growing dividends ever since.

  29. Great blog! It looks like you’re going to reach your goal well before age 40!

  30. Jason,

    You’re an inspiration to so many. I can’t relate to you on your upbringing and I have been fairly financially educated due to my degree in Finance/Economics, but I can relate to your passion for dividend investing. Thanks for inspiring others (including myself) to blog about our own experiences and for sharing your journey with many others who may be in your old self’s boat.

    Best,
    Nathan

  31. FV,

    Thanks! Glad you’re enjoying the blog thus far. ๐Ÿ™‚

    We’ll see if I get there earlier. I was ahead of pace before I quit my job to focus on writing. But it’s definitely worth the trade-off since I’m basically living the life I’d live if I were FI anyhow. And if I end up becoming financially independent at, say, 45 or whatever, that’d still be a hell of an accomplishment.

    Thanks for dropping by!

    Best wishes.

  32. DM,

    I read this article and I asked myself, trying to imagine where you would be today if you had started a few years earlier…

    Then I read a study which says that the average person in their 50s or 60s has a net worth that is lower than yours. So you are a 60 year old, in the body of a 30 year old ๐Ÿ˜‰

    It is sad that many people start looking at investments the same way gamblers look at Vegas slots. They waste decades of their life on speculation, and end up nowhere, before gaining their senses.

  33. Nathan,

    Thank you. I really do aim to inspire others, so I’m incredibly grateful that it comes across. ๐Ÿ™‚

    We all come from different backgrounds. But the good news is that one doesn’t need any kind of advantages over another or anything like that to achieve financial independence. Maybe it’s easier for some or more difficult for others. But we can all be on relatively even ground in the end. And that’s what really maters.

    Best regards.

  34. DGI,

    A 60-year-old in the body of a 30-year-old. That’s a shame, but it’s true. I know there’s some small percentage of people out there that want to work until they’re too old to, but I think the larger majority just doesn’t think there’s another way. I’m doing my best to show the light. ๐Ÿ™‚

    Thanks for dropping by!

    Cheers.

  35. I think you are making a humble statement in saying you won the lottery. I took hard work, dedication, and few breaks along the way, it certainly may feel like you have won the lottery, but I bet it sure feels like it!

  36. Steven,

    Oh, no doubt it took a lot of hard work, consistency, perseverance, and dedication. And I touched on some of that in the article. And I wasn’t saying I won the lottery, per se. I’m saying that the result of all that hard work is like winning the lottery in that the wealth is similar. Of course, it’s even better doing it yourself since you’ll have a unique appreciation for the money. ๐Ÿ™‚

    Best wishes.

  37. Loved this post! You’ve laid such terrific groundwork to get to where you are and I’ve had so much fun rooting you on. I’m on my way to those lottery numbers thanks to your teachings. It can be tough to be disciplined once the accounts start growing, but it’s so critical to stay the course and not become complacent. I love that at this point it’s not IF i’ll retire, but WHEN. Must keep contributing….Thank you for sharing your inspirational story over the years!

  38. Great post Jason. People get mesmerized by stories of people striking it rich winning the lottery or selling their company for millions. These stories make headlines, but they are exceedingly rare. The best approach for the vast majority of people is to do just what you’re doing: work hard at what you love, save like a madman (or woman), and invest the rest (dividends, real estate, stocks or whatever strikes your fancy). Most people want it all and they want it now, but that’s just not feasible. Slow and steady to the finish line!

  39. Great post, winning this kind of lottery is way better than the typical lottery. People that win the typical lottery often become bankrupt in a few years time. It’s more important to have a frugal lifestyle so your “lottery” winning can stay with you.

  40. Ryan,

    Thank you. Appreciate your support, as always! ๐Ÿ™‚

    You make a great point there about complacency. I felt like I was getting a little complacent myself not too long ago there, which is partly why I sold my car. Gotta keep that edge alive, which makes life just plain more exciting. Complacency kills the soul, in my opinion. And it also tends to kill one’s ability to build wealth.

    You’re one step right behind me, but catching up rapidly. Keep it up!

    Best regards.

  41. Syed,

    Yeah, it’s all about the headlines. People love headlines. But a book like The Millionaire Next Door shows that most well-off people got there through… old-fashioned hard work. Not a headline, but it is reality. And you’ll appreciate the finish line that much more when you had to strive for every penny/minute. Slow and steady! ๐Ÿ™‚

    Take care.

  42. Tawcan,

    Indeed. It’s not just lottery winners that you hear that about, but athletes as well. If you don’t have the good habits in place to build wealth from the start, it’s tough to know what to do with it when you’ve got it. Plus, you might not really appreciate it. I can tell you that I appreciate every red cent because I gave my blood, sweat, and tears for what I have.

    Thanks for dropping by!

    Cheers.

  43. DB40,

    Ha. Good point! Yeah, some might not pay in a lump sum. In those cases you’re basically collecting a check on the regular, which is what we’re all after. This way is a bit more… assured. ๐Ÿ™‚

    Cheers.

  44. DGJ,

    Thank you. I’ve definitely come a long way, which is to say that a lot of others can as well. Not so important where you start, but where you finish. ๐Ÿ™‚

    Best wishes.

  45. Hey DM,

    Love the article. I really like the idea that you’ve been talking about in your recent posts, about the actions you take affect your future self, and how you’re now reaping the benefits of your past decisions. I’m at the point where I’ve started receiving dividends fro my investments, albeit small ones – but I know that, as you say, it will lead to my future self having an amount that I can only dream of.

    Thanks for sharing!

    DL

  46. DL,

    Absolutely. The positive changes you’re making now will benefit the future you in unimaginable ways. Even better, those benefits just continue on and on and actually grow over time. One small decision today can have repercussions for the rest of your life, which means one stock purchase can pay dividends for the rest of your life. Repeat good decisions over and over again and your whole life changes.

    Keep it up. You’ll get there. ๐Ÿ™‚

    Cheers.

  47. Its fantastic seeing a person like yourself change their life for the better. You may or may not hear it all the time that people are a product of their surroundings but you my friend are proving them wrong. You took a poor situation and turned it upside down and are now thriving. If more people turned out like you, this world would be a much better place. I applaud your ability to face adversity and come out with the upper hand, it is a true blessing to watch.

    I reread this post and I can see why so many people admire and follow your blog. The life you are creating for yourself and your future family is what the American Dream is all about. Keep up the great work as always.

    ADD

  48. DM,

    I think I need to reiterate it for you – YOU ARE ALMOST AT 200K!?!? It’s incredible and having almost $7K in dividend pumping to you aka Almost $600/month is incredible. I know once my busy season ends – I will have quite a lot to evaluate – I’d like to research tax efficient states + better weather (as you know how close cleveland weather is to detroit). I think the combo of the two could improve my happiness and, well, cash flow haha.

    You have hit the lottery DM, every single day. Every single day that you have a choice to do what makes you happy – you have won the lottery DM.

    -Lanny

  49. Studies show that people live happier lives when they have more frequent, smaller accomplishments (quarterly dividend checks) than if they have one huge accomplishment during their lifetime (like a windfall such as winning the lottery). You’re definitely on the right path and I think ever quarter you reap the rewards of your labors, you should be reminded! Thanks!

  50. His goal is to reach a point where his dividends fully cover his expenses. Right now he isn’t touching them. He quit his day job and is writing and blogging full time.

    Still read the articles he posted, though. Especially the third one.

  51. Hang in there, I think everyone has ups and downs with their family including their parents/guardians. Maybe they were/are battling their own financial/life regrets and acted out in disappointing/hurtful ways. Things could get better. I’ve seen my parents friends mellow out and mature as they’ve gotten older. Anyway wishing you the best in that regard.

  52. Been following you for a couple of years now. Lots of great posts, and this one really resonated. You’re becoming quite the writer Jason! Keep up the great work … and inspiration.

    I remember asking you about KRFT a year or so ago. You said it was on your watch list, but there were better values out there at the time. I liked it primarily because it had a pretty decent yield and, hey, people are going to buy mac n’ cheese no matter how bad the markets get. Wish I’d bought more than 30 shares though … but I’m not complaining.

    Haven’t heard you comment on ARCP lately. Like you, I sold when the stuff hit the fan. Any opinion on how things are looking at this point for ARCP going forward?

    Thanks for the great blog!

    Jake

  53. While I’ll take a winning lottery ticket, I will be happy with a steady stream of dividend income that will help me escape the 9-5 world. I will take passive income and early retirement over the stress of retail banking any day.

    I took a small step that will hopefully propel both of us ever so slightly closer to our goals of financial freedom (emphasis on the words “small” and “slightly”). I noticed that you had an affiliate link at the bottom of your website for WordPress’s Genesis theme. I used it when I decided to redesign my own blog earlier this month. So you got a small commission (passive income!!!!), and I got a slightly-less-atrocious looking blog that will hopefully attract more visitors!

    Hopefully we’ll all be winning the dividend lottery soon!

    Sincerely,

    ARB–Angry Retail Banker

  54. ADD,

    Thanks so much. I really think that we’re more a product of our nature (the old nature vs. nurture argument) than our surroundings, but I’m most fortunate in that I was born with pretty good nature. Some people are just more fortunate than others in a lot of regards, so I try to never take that for granted. I guess some people have the will and the drive to succeed and some don’t. Not real sure why that is, but I’m doing my best to inspire others to will themselves to a better place as well. ๐Ÿ™‚

    Congrats, by the way, on recently paying off your student loan! Awesome stuff. Keep it up!

    Best wishes.

  55. Lanny,

    Hey, Florida is always welcoming new residents! ๐Ÿ™‚

    Appreciate the support. I’ve definitely won the lottery in a lot of ways, and I’m really fortunate and grateful. Life is good, my friend. Let’s keep it rolling!

    You guys are doing great over there as well. Every month just keeps getting better and better.

    Cheers.

  56. FF,

    Hmm, I hadn’t heard of that, but it totally makes sense to me. I guess those dividend checks are like the gift that keeps on giving, right? ๐Ÿ™‚

    I know I feel good every time I check my brokerage account and there’s fresh cash sitting there that wasn’t there the night before. It’s like Christmas morning over and over again.

    Thanks for dropping by!

    Best regards.

  57. Jake,

    Thanks for the kind words. Very much appreciated. Doing all I can to inspire people to reach for their own dreams. ๐Ÿ™‚

    KRFT shareholders made out like bandits, it seems. That’s really good stuff. I think the P/E ratio on the shares were like 30 or something recently. I certainly regret not buying shares knowing what I now know, but I don’t regret the logic there. It’s not every day you get bailed out of an expensive stock by a merger like that.

    As far as ARCP goes, I honestly haven’t followed it at all. I couldn’t even tell you what management has been doing or anything else about it. When/if they have a few (5+) years of dividend raises under their belt and things look MUCH better, I’d consider it. Until then, there’s a lot other fish in the sea.

    Best wishes!

  58. ARB,

    Hey, thanks for using the link there. As you know, there’s no cost or anything to visit the site (and I’ve had offers to set up a subscription service). So I try to scratch a living together via the ads and affiliate stuff, so I appreciate you supporting me and the content. It allows me to continue doing this. ๐Ÿ™‚

    Best of luck with the new design. Looks great. I can tell you that I’ve been really happy since moving over to WP and using Genesis. Really beautiful design and super intuitive.

    Every investment is like a winning lottery ticket. Keep it rolling!

    Cheers.

  59. Tyler,

    So sorry, my friend. I missed your comment. Why would I want to unapprove you??

    Sometimes multiple comments come in around the same time, especially on older articles. I respond to comments on the back side of WP, so sometimes the comment order gets jumbled up a bit. My apologies. ๐Ÿ™‚

    Thanks for the support. Always appreciated. And you’re right: it’s really all about discipline. If you have discipline in pretty much anything in life, the odds are good that you’ll succeed. And that’s probably because so few people really have intense discipline, so it’s up to us to rise to the top!

    Best regards.

  60. Thanks for the reply Jason. I wrote that first comment at work today and had a chance to read your comments for everyone which is always insightful in understanding how you think. I thought I disrespected you in some way when you replied to everyone but myself. My apologies.

  61. jason,

    I’ve been thinking this way for a few years now, and I’m glad I stuck to dividend investing. After buying my first dividend stock years ago and continually adding to the position and then re-investing the dividends, I started seeing the fruits of my labors. I have since added even more equities throughout the years (and re-investing the dividends) and am seeing the snowball compound. True, there are some lean months, but 8 months out of 12 is really like Xmas morning… i.e. getting little dividend “presents”.

    At first when I started investing, I sort of made up my mind that if I saved $25000 then I’d get a nice car after I liquidated the portfolio. I am so glad I didn’t, and instead let that sucker compound. I look back at these years and reflect on the financial mistakes I made and the ones that I didn’t. One that I learned, as a previous poster has stated is to not be complacent. I think that is absolutely vital. Another one is to invest consistently. One mistake that I made was to stray from the plan. i.e. penny stocks. 15K lost! ouch! Never again!

    I have no doubt you’ll get to your goal of $18K dividends well before 40. You have a plan, it works great, just lather rinse and repeat. Keep up the good writing. Looking forward to the next post.

    jm

  62. Hi Jason,
    Do you remember the exact moment that you understood the true concept of investing and how it could lead to early retirement? For me it was a summer day in 2010 when I started reading a copy of “rich dad, poor dad”. I bought the book the previous year based on a recommendation from a friend and put off reading it as I thought I would be board to tears. Early in the book when he explained the the true meaning of an asset (something that earns you money like a stock vs something that costs you money like your house or car), it was like fire works going off in my brain! Within a couple of years I discovered dividend growth investing and have never looked back. On that summer day in 2010……. I won my lottery!

  63. Makes sense to me! I definitely feel like we’ve won the lottery simply because we don’t have to worry about money. We have plenty saved and invested and we continue to save. It’s liberating not to fret over having enough money in an account to cover bills or buy food or pay for healthcare. I consider us rich for all those reasons!

  64. Jason,

    You are right that we are lucky to be born in the time that we were born and into a country that we were born in that offers us so many advantages. We are “lottery winners” to be born at this time and place. Even the poor in the country for the most part live like kings.

    Think about it, we have a slave that goes to the well and brings us water. Another slave takes that water and heats it up so that we can take a bath or a shower….EVERYDAY! And another slave goes to the river and washes my clothes. Another slave stokes the fires so that we can cook and have heat in the whole house. Another slave stores ice so that my food doesn’t spoil and so that my thirst can be coolly quenched and my house is cooled in the heat of summer. We have more slaves that toils in the fields and farms to bring us food. And another slave that lights my room with candles on my command. And then we have even more staff that entertains us everyday. I am truly blessed by God to be born at this time and this place. Lord let me remember to be thankful for it everyday.

  65. DM

    I won the lottery this year (age 52) when my passive earnings (dividend income and pension value) totally replaced my income. With zero debt, I go work with a free feeling. I will be transitioning into semi-retirement by age 54. I have travelled a similar investing path as you are illustrating on this site, it has been a good ride. The key is diligence, focus and having a plan. Keep up the thoughtful posts.

  66. Awesome story, Jason, and especially so since it sounds like you didn’t have any ‘legs up’ to get started–it was all you, hustling and making it happen. I’m a little envious of your courage to pack up and move for fairer pastures, too–I’m in CA, where wages are crazy high, but taxes and real estate prices are too.

  67. Jason,
    Thanks for the update! I agree w/ Aiki, the only lottery that you won was the genetic lottery (born in the USA!). Everything else was earned. I’ve just started my Motif, the first step in a long and hopefully prosperous journey to FI.

  68. Great, great article! So many of us joke “yeah, I’ll do that when I win the lottery” but when you actually tune in and start paying attention to your finances, it’s kind of funny how simple it can actually be to build wealth and take control of your life. It does take a lot of discipline, and honestly it isn’t always fun stashing away 50% of your income, but I’ve only been doing it for the past few months and am already reaping the rewards. The biggest change I’ve seen in myself is the saving becoming a habit, along with the peace of mind and simplicity I enjoy by knowing I’m more in control than I was last year, 5 years ago, etc. By taking that stress and worry over money out of the equation, it’s so much easier to focus on the things that truly matter to me: my relationship, my family, laughter, sunshine, reading a really great book, etc. The lottery loses a bit of its appeal when you realize you can create your own lottery win by simply paying attention. Fantastic post.

  69. Now that’s a bait and switch kind of title! ๐Ÿ™‚

    Actually, great article which I forwarded to my sons… hopefully, they’ll learn something from it. My oldest is 27 now, so perhaps he will learn from your story.

  70. I have to say DM you have done a tremendous job in the short time that you have been investing. A bull market definitely helped your progress but due diligence is the only way to invest in quality companies. You inspired me about a year ago and I’m staying the course.That $1000 that I started with has grown to $16000. I’m on my way to earning some of that “LOTTERY MONEY” your talking about..You are an inspiration to us all!

  71. I enjoyed this article, as I do most DM articles. (I’m a frequent reader, but haven’t commented on much yet.) However, I had to disagree on one point – which was where you said: “However, I didnโ€™t even have to gamble a dime.” Of course, it comes down to how one defines the word “gamble”.

    Every investment carries risk. You don’t know – at the time that you buy it – whether you’re buying a quality company who’s going through a tough time and temporarily priced below its true future value (e.g. JNJ), or if you’re buying something else (e.g. ARCP). The stock prices of today and yesterday may not be the stock price the tomorrow. The dividends being paid today may not be paid tomorrow. And if you think bonds are safer – well, the issuing entity may simply not be able to pay on their bonds in the future, fold/go under, and then the bond holders get stuck with whatever comes from the liquidation. Stuff can and does hit the fan (e.g. the 2008 financial crisis) and that nice portfolio balance can plunge very quickly and dividend income can evaporate.

    I’m not trying to rain on your parade, of course, but there’s always a certain amount of risk that every investor agrees to when they buy their investment vehicle – whether that’s an equity, a stock, a mutual fund, an index fund, or whatever else they buy. I’m a buy-and-hold, equity-focused investor too… I just realize that my investment money is being risked in the companies whose equity I buy and the governments in whose bonds I invest.

    That being said – you’ve obviously made very wise choices. You’re buying quality companies that are far more likely to continue performing well than to go under. You’re spreading your risk around so that a single bad egg like ARCP doesn’t poison your entire portfolio. You’re living way below your means. You’re making “interest” (in the form of dividend distributions) work for you and not against you. So you are indeed a winner… after all, life is full of gambles, and you’re way ahead at this point.

  72. 200k. Wow. That is a lottery winnings kind of number–higher even. And it’s even more of an accomplishment coming from a background without a lot of the advantages many other people had or parents like the first commenter.

    Re: the genetic lottery, I wish sometimes to have been resident somewhere where higher education was free, since college was probably my worst investment by far–definitely financially and in other ways too. Oh well :/

    It’s baffling why lottery winners blow their money in the first year until you realize that these are the kind of people who play the lottery. Your strategy is a much better way to tilt the odds.

  73. jm,

    “At first when I started investing, I sort of made up my mind that if I saved $25000 then Iโ€™d get a nice car after I liquidated the portfolio.”

    Wow, can you imagine where you’d be had you done that? It seems like a lot of us come across these crossroads in our lives, where going one way leads to amazing results and the other way… well, you might not like where that road goes. So glad you stuck with it. ๐Ÿ™‚

    I definitely agree that you have to be consistent. I once wrote that consistency is my sole superpower. And I only wrote that because a lot of people have a hard time seeing something through if it takes more than a month or two. Spending a decade or more of your life to accomplish something is much too long for most people, yet they have no problem spending 40+ years of their lives working? Makes no sense to me.

    Thanks for the support. We’ll see how it goes. I was ahead of pace in regards to the goal, but the change to self-employment may change things. Either way, I’m incredibly grateful for my current position and where things are headed. I’m excited!

    Enjoy your presents. ๐Ÿ™‚

    Best wishes.

  74. Thanks for checking out the site! And thanks for sharing all your knowledge of the world of dividend growth investing!

  75. Mike,

    That’s a great question.

    I came upon my first epiphany of realizing there was “a way out” of wage slavery after reading Your Money or Your Life. But I think I realized that this was really working and I could clearly see that dividend income could/would cover expenses one day right about the time I started my blog. I became so confident in what I was doing and the plan that I wanted to share it with the world and prove that you didn’t need a big salary or prior education to become significantly wealthy and produce enough passive cash flow to retire quite young.

    I’m glad you came upon your own epiphany. That’s awesome. You and I kind of discovered this right about the same time, as I started down the path of saving/investing in mid-2010 as well.

    You’re five years along now, so I’m sure you’re in a wonderful position now. Keep it going. As you get further along, that snowball just rolls faster and faster. The best times are still yet ahead. ๐Ÿ™‚

    Take care!

  76. Mrs. FW,

    A friend of mine described that phenomenon – not worrying about money anymore – as kind of like that scene in Forrest Gump where Forrest receives that big check in the mailbox. Just one less thing to worry about in life, right? ๐Ÿ™‚

    It’s great to start thinking about life less in terms of money and the worry over it and more about what really makes you happy. That’s when you’ve really won the lottery. You guys are in a great spot over there, following your dreams. I don’t know how it gets any better than that.

    Cheers!

  77. TAT,

    Yeah, it’s truly amazing. Even someone who’s making a very modest salary is still better off than the kings and queens of old. I look at my life right now and, sure, I don’t own a car, or a fancy house, or really much of anything outside of the assets you see here on the blog. But I live a much richer life than pretty much any historical figure you can think of pre-1900. Modern HVAC, the internet, electricity as we know it, air travel, the quality and quantity of available food, etc. These are all things we take for granted, but they all have a dramatic positive impact on quality of life. Even better, it doesn’t take much income to access all of these things. Even living poor in a first world country is living quite rich, historically speaking. All of us born in first world countries have won a lottery, in that respect. ๐Ÿ™‚

    Cheers!

  78. Brad,

    Congratulations. That’s fantastic. I have a lot of respect for people that have walked the path, because I know firsthand what it’s like. And you did it at a time when it was even more difficult. Enjoy the freedom that your hard work has provided you. Reap the rewards. ๐Ÿ™‚

    Best regards.

  79. Charles,

    Yeah, I can imagine it’s a bit more difficult there in CA. Depends on your occupation. If I didn’t work in an industry that allowed for a high enough income to offset the financial disadvantages, I’d have to move elsewhere. Then again, CA is expensive because a lot of people want to live there. It’s desirable for a reason, right? ๐Ÿ™‚

    Thanks for the kind words. I’ve come from the depths, which I think just goes to show that a little luck and a lot of hard work goes a long way. Never give up!

    Best wishes.

  80. Pete,

    I definitely agree with you. Buffett calls it “the ovarian lottery”, which is really an apt description. We’re all fortunate and lucky in a lot of ways. But luck only gets you so far. The rest is up to you. ๐Ÿ™‚

    Best of luck as you march down your own path. It’s a bit tough at first, but that snowball builds and it gets easier. Success begets more success, and over time you’ll slowly be able to see the finish line.

    Take care!

  81. Stephanie,

    Great comment. Completely agree.

    The lottery definitely loses a lot of its luster when you realize that you can actually go out and get that kind of wealth, instead of relying on ridiculous and, frankly, stupid odds. It’s definitely not always fun saving half of your net income, but it’s a lot more fun than working your entire life. I can tell you that. ๐Ÿ™‚

    Keep up the great work. You’re already starting to see the rewards take shape in the reduced stress and optimistic outlook. You’re getting there!

    Cheers.

  82. Ferdi,

    Ha! I flipped the script on ya! ๐Ÿ™‚

    Thanks for forwarding the article. Means a lot to me. I hope they get something out of it. I’m sure you can also forward some (all) of your own stuff to them. Hopefully, they read your blog so that they can follow in dad’s footsteps.

    Best regards.

  83. maurice,

    “That $1000 that I started with has grown to $16000.”

    That’s what I’m talking about! And that $16,000 produces cash flow all by itself, which will allow the pile to get bigger and the cash flow to grow. The snowball is already rolling along. Just gotta keep pushing. Stick with it. Stay consistent. The results are already showing themselves. You’ll have “lottery money” before you know it. ๐Ÿ™‚

    Best wishes!

  84. David,

    Great point there. You’re right in that the phrase was a bit of a misnomer. I suppose I don’t look at buying high-quality stocks as a gamble on the whole, but there is always the chance that one ends up not how you expected, like ARCP. And, really, buying stocks is making a bet or wager that the company will grow, and with it your wealth and income. Perhaps it’s still gambling, but with the odds stacked way in your favor. ๐Ÿ™‚

    But, yeah, I think you’re right in that life is full of gambles. Crossing the street is a gamble that somebody won’t hit you. Walking outside is a gamble that lightning won’t strike you. So on and so forth. There are always odds at play there. I guess the best one can do is put the odds in their favor and act/invest accordingly. And if anyone had odds stacked against them, it’s me. But I think that it’s really not that difficult to do what’s necessary to flip that around and put the odds way in your favor. You could buy a lottery ticket with 1-in-150 million odds or whatever, or save and invest your way to financial independence in the manner I describe which I think will probably prove out to 99% success if you follow the plan.

    Thanks for adding that!

    Best wishes.

  85. Jana,

    Yeah, I know what you mean. College was a big waste of money for me as well. I think higher education definitely has its advantages and wonderful qualities, but it’s also not for everyone, nor is it a prerequisite for success/wealth.

    “Itโ€™s baffling why lottery winners blow their money in the first year until you realize that these are the kind of people who play the lottery.”

    Great point there! I suppose if you’re the type of person who’s prudent enough to save a good chunk of income and invest accordingly to grow/maintain your wealth, you probably won’t be playing the lottery in the first place. Good point!

    Thanks for dropping by.

    Best regards.

  86. I agree completely, and I do think you’ve managed to do an amazing job with your life despite the odds stacked against you. And certainly I agree that buying investments in quality, proven companies is much less of a gamble than buying that 1-in-150 million, all-or-nothing bet that is a lottery ticket. I just wanted to comment that I disagreed with the premise that you weren’t gambling at all when building your portfolio. We all gamble when we make our investments – it’s just that the odds do favor those who make wise investment decisions, rather than foolish ones.

  87. Jason,
    I wonder if you had a less challenging upbringing, and not getting, & blowing the inheritance and the “worth more as a baby” thing never happened. Would you actually have become Dividend Mantra?
    I’m sure every one of us on here could have done better, saved more, invested wiser, but we’re all here – plugging away – all winning the lottery together, all helped & inspired by your site!

  88. Jason,
    Great Post! I found your blog a couple of months ago and you have inspired me to start dividend investing.

    You mentioned something extremely important, which is having the ability to manage that wealth.
    Unlike a lottery winner, you earned your money and therefore, you can manage it.
    There used to be a show a while back that followed lottery winners and unfortunately most of the time, they lost everything and often ended up in a worst financial situation than before.

  89. Nick,

    That’s a really interesting thought there. I’m definitely not the type of person to look back and regret things, but it is fun to think about what would have happened had things been different. Of course, you can ask yourself a lot of “what ifs” about pretty much anything and everything in life. I do think that had I never blown the inheritance and had any semblance of an idea as to how to manage money back then, I’d be financially independent by now. Would I have ever started the blog in that case? Tough to say. I’ve always enjoyed writing, though, so I probably would have started a blog/website of some kind, but it probably wouldn’t be what it is today.

    But you’re right. We can all do better. I know I can certainly do better than even what I’m doing. I could save a little more and work a little harder to earn even more income, but I’ve found a pretty good balance these days. And, really, the whole point of all of this is to maximize happiness in life, where financial independence gives one the time/freedom necessary to pursue the type of life that makes them most happy.

    Thanks for dropping by!

    Best regards.

  90. Carlos,

    Glad you found the site! And I’m really happy that you’ve found the inspiration here to start down your own path. Inspiring others is one of the main reasons I write and share so much. ๐Ÿ™‚

    I watched a program just like that a while back. Really such a shame, but I suppose I can see it. I mean I wasted away money when I was 21 because I had no idea how to manage it. I’d like to think that I would have never wasted a substantial portion of money, but it’s certainly possible many years ago… especially with everything that was going on in my life at that time.

    Best of luck as you march down the path. We’re all in it together!

    Cheers.

  91. I turned my badge in at noon today and officially retired so I really do feel like I’ve won the lottery. Well not exactly yet but give me a few weeks for it to sink in. ๐Ÿ™‚

  92. trostock,

    Man, big congrats over there. That’s awesome!

    Enjoy the freedom. You’ve definitely won the lottery in your own way. Winning the lottery is basically just having enough money to hopefully live life on your terms, and that’s where you’re at. ๐Ÿ™‚

    I’ll meet you there on the other side in a few years here. Keep a seat warm for me. Have fun!

    Best regards.

  93. Hi Jason!

    Like for many other people, your blog was one of the first I stumbled upon when I started reading about dividend investing. I just want to let you know how much I appreciate the work you put into dividend mantra and how inspiring your story and progress are! Keep up the great work my friend, I’ll be following your posts until the day you retire early ๐Ÿ˜‰

    As to this post specifically, I have to say that I have always found it baffling how lottery winners or multi-millionaire celebrities can end up broke given the wealth they had in their hands. I definitely prefer to slowly increase wealth over time as that inherently instills strong money management skills and makes one become much more appreciative of what even a single dollar is truly worth. To be honest, I feel like I’ve won the lottery just by having discovered dividend investing, haha!

    Cheers!

  94. Hi DM,

    Nice article. When I left school 5 years ago I never tought I would have collected such amount of wealth by age 26. Currently my stock portfolio is nearing the 250k EUR mark and I still need to collect most dividends this year. It seems that the my first moves on the stock market in 2008 and 2009 really helped my portfolio.

    I just used the compound interest calculator and if I never add a EUR to my portfolio and keep working to my 65 ( which I won’t) it wil grow to 3 500 000 EUR. Now that is some lottery money.

    Cheers,
    G

  95. hi Jason,
    i love your blog, im checking it everyday if thereยดs something new.
    i have just one question. you have now 200.000$ worth portfolio and expecting 7.000$ in dividend this year.
    thats a yield of 3.5%
    could you tell us or maybe write an article whats your yield on cost? how much of your own capital excluding dividends did you put in work?

    PS: sorry for my english, hope its clear my question and that it make sense what i wrote here.

    thanks and good luck

  96. ZTZ,

    Thanks so much. Really appreciate the readership and the support. Looks like you’re off to a great start over there yourself. And your picture reminds me of my younger days when I was a bodybuilder. I don’t squat 405 anymore, that’s for sure! ๐Ÿ™‚

    I definitely agree with what you’re saying there. I remember inheriting money when I was 21, and I didn’t really appreciate it. I never had to work for it, so it seemed like “money to blow” to me. However, I had to work incredibly hard for every penny I have now, so there’s a deep appreciation and identification with all of it. There’s a sense of ownership and responsibility there as well.

    Thanks for stopping by. Best of luck on your journey from zero to lots of zeros!

    Best regards.

  97. Geblin,

    Nice! Isn’t it awesome to know that even if we never add another dollar we’ll still be millionaires? That’s an incredible feeling. Success, wealth, and financial independence are all foregone conclusions at this point. ๐Ÿ™‚

    You’ve definitely already won the lottery. You’re probably somewhere in the top 1% or so of the world, especially for your age. Keep it up!

    Best wishes.

  98. Pavol,

    Thanks so much. Really appreciate the readership! ๐Ÿ™‚

    As far as yield-on-cost, I don’t track it because I don’t find any value in the metric. This is perhaps something I’ll write an article on someday, but I don’t see any value in YOC.

    If I have stock ABC at a 10% YOC, but it only offers a 1% current yield, I’m not really generating much yield from that holding. If I were able to put that same capital to work in stock X at a current yield of 3%, my dividend income would triple. So even though my YOC would drop from 10% to 3%, my income would triple. YOC is just a way to show what kind of long-term capital gains you’re sitting on, but it’s a poor way to even track that, as one’s best way (that I’m aware of) to figure out the portfolio’s return is to run an XIRR on a spreadsheet.

    Some investors love to look at YOC. I think that’s great. But I personally find zero use/value there. So that’s why I don’t track it.

    Hope that helps. ๐Ÿ™‚

    Cheers!

  99. DM,

    Great article. This article helps keep things in perspective as we start on our journey. One day we will be lottery winners as well. Keep up the hard work (inspirational writing). ๐Ÿ˜‰

    Have a great weekend!

    FD

  100. FD,

    You’re getting there! Like I mentioned in another comment, every new stock purchase is almost like a winning lottery ticket. As long as that company continues to pay (and grow) its dividend, you’re “winning” for as long as you own equity. Meanwhile, a real lottery ticket will most likely end up in the trash.

    Keep it up. Every day is a new opportunity! ๐Ÿ™‚

    Best wishes.

  101. Thanks for sharing your story – you’ve come a looooong way and then some! There are people who have had more privileged backgrounds and who have had a great start to their lives but who end up not being as well off as you are at your age because they have not been wise with their money.

    As for the lottery, it’s stupid to rely on winning it in anyway – winning is just a dream.

    However, I still play regularly – ยฃ2 a week is just a bit of fun, unlikely to ever win the jackpot but I enjoy talking about such dreams with friends and colleagues.

  102. I have a question regarding your broker. You use scottrade and they require a $7 fee for each trade correct? I am trying to follow in your footsteps. However, I do not have a large lump some of money to purchase individual stocks without the trade fees eating into my profits. Would I be better off to purchase an ETF like vanguard dividend growth or purchase stocks direct through computershare? Thank your for your help.

  103. weenie,

    Thanks so much. I’ve come along much further than I ever dreamed, but I still have a long way to go. I hope to continue writing and inspiring all along the way.

    Nothing wrong with playing the lottery if it’s just cheap entertainment. I think that’s really how you have to look at it. It’s just a sunk cost, but it’s paid entertainment. And pretty cheap at that if it’s just the occasional few bucks. ๐Ÿ™‚

    Thanks for dropping by. Hope you’re having a great weekend!

    Cheers.

  104. Sean,

    Well, the first thing I’ll say is that one doesn’t need a lump sum to invest in this manner. In fact, this investing strategy is specifically designed for investing chunks of money along the way. That said, there are a couple different ways to invest quite cheaply. You can use Computershare. In addition, Loyal3 has a few dozen or so high-quality dividend growth stocks that you can purchase commission free.

    As far as ETFs go, I’ve previously discussed why I prefer to avoid them (and invest this way instead):

    https://www.dividendmantra.com/2013/04/why-i-vastly-prefer-dividend-growth/

    https://www.dividendmantra.com/2014/07/why-dividend-growth-investing-is-such-a-robust-investment-strategy-for-those-seeking-early-financial-independence/

    And I’ve also discussed how I’d go about if I were starting all over again (or if I were in your shoes):

    https://www.dividendmantra.com/2014/05/if-i-were-starting-all-over-again/

    But I think the biggest piece of advice I can give is to try and get to the point to where $7 or $4 or whatever in commission fees really don’t matter much. If you’re not saving/investing at least $1,000 per month, you may have a hard time accomplishing financial independence at a relatively young age. Investing is a much smaller piece of the puzzle than saving is. So you really need to focus on creating a large gap between income and expenses before worrying about brokerages or anything else.

    Other than that, the archives will provide you plenty of information. As do the recommendations on the blog. ๐Ÿ™‚

    Hope that helps!

    Best wishes.

  105. Thank you very much for the quick reply! Those links are very helpful and exactly what I am looking for.

    The only other thing I can think of to ask is, have you done any articles in the past on how to pick stocks and the different criteria you use? And more importantly, why that criteria matters and what it means for the outlook of that stock. Your evaluations are very nice to read, because you explain WHY you are choosing to purchase the stocks that you do. I would like to learn how to objectively make these choices on my own. I know this would help greatly in my understanding of stocks in general.

    And I just came across this site about two days ago, but I think you got yourself another long-term follower. Keep up the great work =).

  106. Sean,

    Glad you came across the site and I’m more than happy to help. ๐Ÿ™‚

    Like I mentioned in the last comment, the archives will probably answer most of your questions. In addition, there are two search bars (one at the top right and the other in the right sidebar) that will guide you toward any information you’re looking for. I’d definitely recommend checking that out, and I only say that because there are almost 700 articles on the site now, which is more information than I can share in a comment.

    But you can find an article I wrote on stock analysis and what I look for here:

    https://www.dividendmantra.com/2014/01/how-i-analyze-and-value-stocks/

    Hope that helps!

    Best regards.

  107. We have a group lottery pool at work that I sometimes contribute to but aside from that I never buy lottery tickets. I believe the most reliable way to achieve long term wealth is to invest for the long term in blue chip companies (preferably dividend paying companies) like you have done

  108. Dan,

    I’m with you. Building wealth via methodically saving a good chunk of your net income and investing it intelligently is about the best bet there is. That said, nothing wrong with buying a ticket here and there if it’s just entertainment. I’d personally rather invest that extra $1 here or $2 there, but to each their own. ๐Ÿ™‚

    Thanks for dropping by!

    Cheers.

  109. Wow- great post DM. It is truly an inspirational story that I will share with my kids that are about to graduate from college. They did not have to overcome the challenges the you have- so if you can do it, they surely can.

  110. GRT,

    Thanks so much. Very, very kind of you. I’m honored that you feel inclined to share it with your children. I hope they find a lot of value and inspiration in my words/journey. ๐Ÿ™‚

    Cheers!

  111. trostock,

    Congrats!!! I am counting down the years until my expenses and Dividends cross so I can also make retirement a reality.

    I would be interested to hear how your retirement expenses and income evolve over the years.

    Enjoy your well deserved retirement.

  112. Jason,

    Great post! Very timely too as I had a fun conversation with a friend a couple of days ago.

    Here in Belgium we have a lottery type called “Win for Life” with which you can win โ‚ฌ2,000 in income every single month for the rest of your life. When my friend was telling me how awesome it would be to win so much extra money every single month, I pointed out to him that I was effectively trying to achieve that through dividend growth investing. The added bonus on top? Income growth, because the โ‚ฌ2,000 will be near worthless near the end of your life.

    You should have seen his face! ๐Ÿ™‚

    Anyhow, I also feel like I’ve won the lottery. Or that I’m building my own jackpot at least. Thank you for being such a great source of inspiration!

    Hope you’re well over there,
    NMW

  113. NMW,

    Hopefully, you opened your friend’s eyes! ๐Ÿ™‚

    I hear you. I feel the same way. We’re definitely building our own jackpots. And the payout will be a “win for life” as well, but with the added benefit of the growth of that income, as you pointed out. We’ll be living like lottery winners pretty soon, except we don’t have to face ridiculous odds. Life is good!

    Thanks for the support. Much appreciated. Hope all is well for you as well.

    Best regards.

  114. DM,

    Great job building your own lottery stash. It seems like the second hundred thousand came much faster than the first one!

    I always have these themes running through my head each time I make a buy order in my portfolio; even when it’s only for a thousand dollars or so, it’s just that bit by bit, inching closer toward achieving a dream.

    Keep up the hard work, brother.
    – Ryan from GRB

  115. GRB,

    “…itโ€™s just that bit by bit, inching closer toward achieving a dream.”

    Exactly! I commented somewhere else that each stock purchase is like a lottery ticket… that will very likely provide you with a lifetime jackpot payout. ๐Ÿ™‚

    Appreciate the support. Thanks for dropping by!

    Best wishes.

  116. Ditto to every post before me. I would like to bring to attention the really interesting stories of those who share their trials and tribulations. We read/comment on this site because we seek a united goal and that is to make money work for us and not the other way around. I find it rather therapeutic as patience, at times, is not my strong suit but have learned that time is the most precious commodity(for DGI). I too saw the light in 2010 when I bought Blackberry at $48 which was down 18% on the day thinking it was a great value and that it was going back to $150 in no time. After a few months of watching it sink further into the abyss I decided there has to be a better way. After extensive research, I stumbled on this site as well as started following a handful of inspirational writers on SA. I will hold Blackberry forever as a reminder and lesson that there are no shortcuts in my pursuit to achieve FI. Keep up the great work and keep that income stream growing.

  117. MJ,

    Thanks for sharing that!

    I’d say I’m sorry to read about your experience regarding Blackberry, but it’s actually a huge blessing in disguise. It was that experience that brought you to the conclusion to stick to high-quality companies that reward you as a shareholder with growing cash flow. And that epiphany will hopefully be the driving force behind you eventually reaching financial independence. ๐Ÿ™‚

    Thanks for the support and the readership. It’s much appreciated.

    Stay in touch!

    Best wishes.

  118. Love this post as I couldnt agree more. You won the lottery of financial literacy that so many neglect in life yet all the information is out there for free.

  119. A-G,

    Knowledge is power. What’s funny/strange/interesting is that so few people take advantage of that power. But perhaps that means more opportunity for those of us willing to change our lives for the better. ๐Ÿ™‚

    Best regards!

  120. Iโ€™m basically sitting on lottery money, as my portfolio nears $200,000 and should generate more than $7,000 in dividend income this year.

    Just a few years ago, I couldnโ€™t imagine controlling that kind of wealth. But itโ€™s now my reality. I can wake up in the morning, log in to my brokerage account, and see that I have almost two hundred thousand dollars. Itโ€™s absolutely insane!

    It really is insane.

    I also grew up pretty poor. I remember as a kid, my parents had to save up to write a $1,000 check for something (I don’t remember what it was now). They showed my brother and I for some reason, and I remember just holding it and thinking about how much money that was at the time. It was more than we’d ever seen. I remember feeling the weight of it like it was something to be treasured.

    Of course, in retrospect that amount of money pales in comparison to how much I have saved (which is not even half of what you have) and it’s easy for me to take it for granted but you are absolutely right.

    Had you told me at that point that I’d have almost $100,000 in cash and investments, I’d have thought you were crazy. But now it’s almost to that point and I try to put things in perspective to feel that awe, because really we are working on something here that not many do despite having the means, or many can’t because they don’t have the means.

    Anyway, great read. Keep it up!

  121. FI Monkey,

    I know exactly how you feel. I remember cutting lawns when I was a kid as a way to collect money for food and what not, and I used to charge $5 a lawn. That $5 was so much money to me back then. I still hold on to a piece of that little kid inside of me, so as not to let my perspective change too much when it comes to how much I really need.

    It’s really incredible that we’re sitting on lottery money now. No need to waste money on lottery tickets when we can create our own jackpots! ๐Ÿ™‚

    Thanks for the support. I imagine we’ll one day be sitting on well over $1 million. And others will only assume that we did indeed win the lottery. After all, how else can one have $1 million unless they were given it or won the lottery?? ๐Ÿ™‚

    Best regards.

  122. I see this is an old post but I really enjoyed reading a bit of your background and I can see why you are so motivated. I really do believe that you will end up with a portfolio of over 1 million dollars the way things are going.

  123. Laura,

    Thank you. That’s very kind of you. Appreciate the support!

    I’m excited to see where things go. And I’m perhaps even more excited to share the results and inspire.

    Hope all is well over there. Have a great weekend.

    Best regards.

  124. Fred,

    It’s interesting that they don’t include the greatest luxury of all: freedom.

    But I have no need or desire for a luxury watch or private island. My seven-year-old iPhone 3G tells the time just fine and I live near some of the best beaches in the world. Even better, I can visit those beaches for free. Life is good! ๐Ÿ™‚

    Thanks for sharing.

    Cheers.

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