Recently presidential candidate Andrew Yang announced plans for a “Freedom Dividend.” This is a monthly payout to all Americans over 18. If you’re an adult, according to Yang’s plan, you will receive $1,000 per month for the rest of your life.

Politics aside, I thought it would be fun to look at how much it costs to build your own monthly freedom dividend, either from stocks or bonds.

Here we go!

How To Make $100 Per Month

(Nine Month Results From Building My Freedom Dividend Fund)

$100 a month in dividend income is a great starting point. That’s enough to cover your phone or water bill, helping free up some of your regular income. This is also money you can reinvest, helping you accelerate your earnings.

So how much do you need for this $1,200 a year freedom dividend find? Let’s take a look.

At a 4% annual dividend, you need $30,000 invested. This is a doable amount and you can easily reach this goal within a year by setting aside $82 per day.

Generating $500 Per Month

This stage is tougher but more rewarding. An extra $500 a month is huge and covers many expenses. Also, as with all dividends, you’re able to reinvest it for bigger gains.

Going off the 4% annual dividend payout, it takes $150,000 to earn $500 each month.

This is a pretty big chunk of change, but something you can certainly build up to within a few years. Investing $30,000 per year (and reinvesting dividends) allows you to hit this benchmark in about four years.

Building A $1,000 Per Month Freedom Dividend Fund

Depending on where you live, $1,000 is enough to cover your rent. This means an extra grand per month is covering all your housing costs for the full year.

And even if you live somewhere more expensive, $1,000 still goes a long way.

To reach $1,000 per month in dividend income, you need $300,000 invested at a 4% annual payout.

Is this a big goal?

Certainly!

But is this also something you can accomplish? Yes! Investing $30,000 per year fully fuels your freedom dividend fund within 10 years or less.

That’s a small amount of time in the grand scheme of things.

Closing Thoughts

Dividend payments are a great way to create steady cash-flow. They bring in reliable earnings, just like a paycheck.

Smart investors can then use this money to help build a secondary stream of passive income. Something which helps cover their bills and monthly expenses.

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