Welcome to my blog, where I share my journey of leveraging dividends to create financial freedom and life choices as a factory worker. Last year, I achieved a milestone: earning ¥19 million (after taxes) in dividends. But this is just the beginning. By combining dividend investing with side hustles, certifications, and skill-building, I’m striving for even greater financial security and opportunities.
In this post, I’ll share specific strategies for managing risk while increasing income and expanding life’s possibilities.
The Freedom Created by Dividend Income
As a factory worker earning an annual salary of approximately ¥5 million, balancing finances with a family—my wife and young child—can be challenging. A significant salary increase in the future is unlikely given my current role. However, thanks to ¥19 million in annual dividends, my life has gained much-needed breathing room:
- Supplementing Living Expenses: With dividends covering a portion of my expenses, I’ve been able to redirect ¥100,000 to ¥150,000 per month from my salary into savings and investments.
- Financial Peace of Mind: Even if income were to decrease, dividend income provides a buffer for unexpected expenses.
- Investing in the Future: I can allocate funds toward skill development, certifications, and side hustles, accelerating personal growth.
Lessons Learned: From Overzealous Investing to Balanced Growth
Increasing dividend income often involves taking calculated risks. However, last year taught me some valuable lessons:
Strengthening Diversification with Mutual Funds
Previously, I focused almost exclusively on individual stocks. While this strategy worked initially, I found myself overly affected by market fluctuations and individual company performance. To mitigate this, I added mutual funds to my portfolio, aiming for more stability and consistent returns.
Currently, my portfolio includes:
- U.S. High-Dividend Stocks: Examples include MO, KMI, and BTI.
- Index Funds: S&P 500 and NASDAQ 100-linked funds.
- Monthly Dividend Mutual Funds: Funds from AllianceBernstein, Invesco, etc.
Avoiding Overstretching Finances
Rather than stretching my budget to invest aggressively, I allocate roughly ¥100,000 per month—a sustainable amount—to investments. Maintaining a balance between family priorities and financial growth ensures stability and happiness.
Revised Investment Principles
- Strengthen diversification to reduce market risks.
- Prioritize family and daily living expenses, investing only surplus funds.
- Build wealth steadily by reinvesting dividends and targeting long-term growth.
Experimenting with Side Hustles to Build “Earning Power”
Dividend income alone isn’t enough to achieve financial independence. I’m also cultivating skills and exploring side hustles to increase my earning potential.
1. Relaunching My Blog
I recently restarted blogging, not as a source of affiliate income but as a platform to share insights and help others.
- Focused Topics: Managing risks in investing, building wealth in rural areas, and lessons learned from my experiences.
- Value-First Approach: Rather than prioritizing monetization, I aim to provide actionable advice, such as metrics to analyze high-dividend stocks or strategies for avoiding dividend cuts.
- Sustainable Content Creation: I’m developing systems to ensure consistent and manageable posting.
2. Balancing Short-Term Revenue with Long-Term Skills
While short-term side hustles provide immediate cash flow, I’m also investing in skills like programming and financial planning to build sustainable income streams over time.
Preparing for the Future with Certifications
The older we get, the harder it becomes to start new things. That’s why I’m investing time in obtaining certifications that can open doors and create new opportunities.
Current Certifications in Progress
- Financial Planner (FP) Level 2: Enhancing my financial and investment knowledge, with plans to use it for side gigs.
- Securities Sales Representative Certification: Exploring a potential career transition into the financial industry.
- Python and Data Analysis Skills: Learning programming to automate data collection and build tools for work and side hustles.
Goals for Certification
- Creating Unique Value: Combining multiple certifications and skills to stand out and create niche expertise.
- New Income Opportunities: Using FP certifications for consultation work or leveraging Python skills for data-driven projects.
Conclusion: Combining Dividends and Self-Investment to Expand Life’s Choices
Dividend income provides a stable financial foundation, but it’s self-investment through side hustles and certifications that truly unlocks opportunities. These efforts, while small individually, compound over time to create a life less dependent on age or circumstances.
If you’re inspired by the idea that an ordinary factory worker can achieve such results through strategic effort, join me in this journey. Let’s learn, grow, and challenge ourselves together.