I have often asked myself, how much would it be considered enough? Do I want to earn $10,000 a month? Would that be enough? I have finally concluded that having $60,000 annually is what can give me a decend lifestyle, I should just target to earn that amount and not over-stretch myself.
Assuming that the average dividend yield of the dividend shares/REITs that I will be buying is approximately 4%. To achieve an income of $60,000 annually will mean that the dividends should give me $5,000/month.
Simple mathematical formula tells me that I’ll need $1,500,000 in my dividend shares investment.
Probably a faster way to achieve that would be to invest in a property of $1.5M that will give a rental yield of 4%?