How Does "Earning" SGD 250 A Day Sound To You?

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This is a relatively short post, and I just want to share my personal thoughts (to myself) and record it down as a constant reminder to myself in my dividend investing journey.

This post is inspired by a conversation in the Dividend Investing Telegram Group.  How will one feel financially if one day, an investor is paid SGD 250 daily, rain or shine, not through active income, but through dividends?  Sounds too good to be true?  Maybe.  But let me churn the numbers to see if it is achievable.

To Achieve SGD 250 Per Day:
Annual Dividends required = SGD 250 * 365 days = SGD 91,250
Assuming 5% Dividend Yield, Portfolio Value Required = SGD 91,250 / 0.05 = SGD 1.825M

As shown above, the capital required is quite massive (for me), and its not easy to achieve, especially when one is just earning a median income in Singapore.  However, dividend investing is never a one hit wonder nor a "get-rich-quick" scheme.  It is a journey, a lengthy, but in my personal opinion, a rather stress-free marathon.  If achieving SGD 250 per day seems too far-fetched, why not tweak the goal to something more achievable?  Instead of one ultimate goal, perhaps it is wiser to make multiple smaller goals to make the investing journey more motivating, with more attainable, smaller goals.  Regardless, this is my own race to reach my own goal, not one to compare or compete with others.  As long as the dividend income is sufficient for my lifestyle needs, I believe that is all that matters!

If I lower the amount I would like and hope to receive per day, it becomes a more achievable goal, and that will be more motivating to work towards to.

To Achieve SGD 100 Per Day:
Annual Dividends required = SGD 100 * 365 days = SGD 36,500
Assuming 5% Dividend Yield, Portfolio Value Required = SGD 36,500 / 0.05 = SGD 730K

For me personally, SGD 100 per day is a very comfortable amount for daily needs.  This is especially so if I geo-arbitrage to FIRE in Johor in future.  However, as I strive towards Barista FIRE first, I believe I can still grow my investment portfolio partially in the near term through dividend reinvestment to build up a buffer, to eventually make SGD 125/ MYR 400 per day (or more) a reality.

A look back in my investing journey thus far:

2018:  Total Annual Dividends = SGD 2,670.49; SGD 7.32 per day

2019:  Total Annual Dividends = SGD 4,988.44; SGD 13.67 per day 

2020:  Total Annual Dividends = SGD 7,666.60; SGD 21.00 per day 

2021:  Total Annual Dividends = SGD 13,003.48; SGD 35.63 per day 

2022:  Total Annual Dividends = SGD 18,589.05; SGD 50.93 per day

2023:  Total Annual Dividends = SGD 23,290.12; SGD 63.81 per day

2024:  Total Annual Dividends = SGD 28,359.63; SGD 77.70 per day

2025:  Total Dividends for 1H = SGD 15,493.96; SGD 85.60 per day (based on 181 days)

With these numbers, I believe I am progressing in the right direction, and I will be able to begin my Barista FIRE in phases, starting next year.  With 2 to 3 years of progressive runway, I believe a daily income of SGD 125 is highly possible and within reach when I FIRE in Johor.  This shall be another goal for me to reach.  Barista FIRE, here I come...!

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