「挑戦する投資家がたどり着く配当ライフ」

Before Investing, I Was 100% Focused on Saving After graduating from university, I worked in the service industry, earning less than 200,000 yen per month. Despite this, I managed to save nearly 10 million yen (around $70,000) in just six years. The key to my success was living at home and following a strict saving rule. I limited my monthly personal expenses to 30,000 yen ($200), putting everything else into savings. Instead of focusing on making more money, I first mastered the art of saving. Later, I used my savings to start investing and growing my assets. Now, in my late 30s, I have the financial freedom to make different career and life choices. In this article, I’ll share:✅ How I saved 10 million yen in six years✅ The lifestyle and habits that made it possible✅ How saving money led to bigger financial opportunities 1. Maximizing the Benefits of Living at Home The biggest factor in saving 10 million yen was the low cost of living at home. Let’s compare typical living expenses for someone living alone in Japan: Expense Monthly (Average) Yearly Rent 60,000 yen 720,000 yen Utilities 10,000 yen 120,000 yen Food 30,000 yen 360,000 yen Internet & Phone 8,000 yen 96,000 yen Total Approx. 110,000 yen Approx. 1.3 million yen By living at home, I was able to redirect this 1.3 million yen per year into savings. Key Considerations When Living at Home: By taking advantage of this unique opportunity, I was able to build significant savings quickly. 2. The 30,000-Yen Monthly ...

1. Introduction | Reviewing This Week’s Asset Performance and Investment Strategy Last week, despite market volatility, my portfolio remained relatively stable.This week, we’ll take another deep dive into total asset movement, dividend earnings, and the impact of market trends to keep our investment strategy sharp. One key focus this time: "How to Use Dividends Effectively."While reinvesting dividends is the standard approach, we’ll explore alternative ways to utilize them for enhancing lifestyle and financial security. Let’s dive into this week’s asset report! (Check out last week's article here!) 2. Total Asset Trends and Analysis (1) This Week’s Total Asset Movement This week, my total assets showed a slight -0.06% decline. However, looking closer, my stock holdings increased, suggesting that the drop wasn’t significant. 3. Market Influences & Investment Adjustments Deep-Sea Shock Impact Markets experienced temporary chaos and volatility, but ultimately, stock prices rebounded.This reaffirmed the importance of staying calm and not panic-selling during downturns. Instead, such moments present great buying opportunities for strong companies. Effect of U.S. Interest Rate Hikes Higher interest rates put short-term pressure on high-yield stocks, but their long-term income potential remains strong.Since my portfolio is designed for stable cash flow, I don’t plan any major adjustments yet. USD/JPY Exchange Rate Fluctuations While exchange rate movements are unavoidable, a weaker yen boosts the value of dollar-denominated assets.Despite short-term volatility, my long-term diversified portfolio should continue benefiting from currency fluctuations. 4. Future Investment Strategies Regular Portfolio Review (Every 3 Months) I already conduct quarterly portfolio assessments, which I’ll continue to fine-tune.Balancing risk and stability ...

[In-Depth Guide] Balancing Aggressive Investing and Emergency Funds for Financial Success Introduction When building wealth through investing, a common question arises: How much emergency fund should I keep? As investment portfolios grow, many investors begin to wonder:"Wouldn't it be more efficient to allocate more capital into investments rather than keeping cash?" While taking on more risk can accelerate short-term gains, it also introduces instability and potential long-term pitfalls. Through my own investing journey, I’ve come to recognize the crucial importance of maintaining emergency funds and striking the right balance between investing and financial security. In this article, I’ll dive into: By the end, you’ll have a comprehensive investment strategy to ensure long-term stability while maximizing growth. 1. The Risks of Over-Investing: Why You Need Balance Many investors are tempted to allocate all available funds into investments to maximize returns. However, failing to maintain a cash buffer can lead to serious consequences when unexpected expenses arise. Risks of Investing Too Aggressively Investment Behavior Potential Risk Cutting emergency funds to invest more Unable to cover sudden expenses, forcing liquidation of investments at a bad time Overusing leverage High risk of forced liquidation during market downturns Relying too much on dividends Dividend cuts can disrupt expected income, creating financial stress For example, if you don’t maintain sufficient cash reserves and an emergency expense occurs (e.g., medical bills, home repairs), you might be forced to sell stocks at a market low—turning a temporary dip into a permanent loss. Leverage can also be dangerous. During the COVID-19 crash (2020) and ...

Managing Household Finances in the Era of Rising Mortgage Rates Recently, there has been a lot of news about rising mortgage interest rates. In particular, the Bank of Japan’s decision to increase rates by 0.5% has raised concerns for those with variable-rate mortgages, as it may lead to higher monthly payments. In this article, I’ll explain how to prepare for the reality of rising rates and share how my family is handling the situation. 1. Impact of Rising Interest Rates 1.1. The Bank of Japan’s Interest Rate Hike and Its Impact The Bank of Japan raised its policy interest rate by 0.5%, which has affected households with variable-rate mortgages. Major banks have increased base interest rates by about 0.25%, which will apply from April 1, and the new rates are expected to be reflected in mortgage payments starting in July. 1.2. Increase in Mortgage Payments Let’s take a look at how the rate hike will affect mortgage payments. Here’s an example scenario: If the interest rate increases by 0.25% (from 0.25% to 0.5%): If the interest rate increases by 0.5% (from 0.25% to 0.75%): If the interest rate increases by 1.0% (from 0.25% to 1.25%): As you can see, even a small increase in the interest rate can significantly impact monthly payments. For those with variable-rate mortgages, these changes can have a big effect, so it’s important to prepare in advance. 2. Key Principles for Managing Household Finances 2.1. Don’t Overestimate the Current Situation Currently, my family rents, so we aren’t directly affected by rising ...

The COVID-19 Crash and the Investor’s Test: Lessons Learned from a Historic Market Downturn In 2020, the COVID-19 pandemic caused unprecedented global economic turmoil, presenting a major challenge for investors worldwide. As the markets plunged and circuit breakers were triggered repeatedly, I faced a pivotal moment as an investor where my ability to remain calm was truly tested. In this article, I’ll share my raw emotions during that time, a comparison to past market crashes, and the invaluable lessons I learned from this experience. If you haven’t already, I recommend checking out last week’s article: Chaos on the Day of the Circuit Breakers: Watching the Market Panic Live During the COVID-19 crash, circuit breakers (temporary halts in trading) were triggered multiple times. I vividly remember watching live market coverage on YouTube. The atmosphere was chaotic, and commentators expressed confusion, repeatedly admitting, "We have no idea what will happen next." As stock prices continued to plummet and trading paused, the tension was palpable. Adding to the chaos, oil prices briefly turned negative—a historic event. I experienced a mix of fear and excitement, realizing, “This is a moment for the history books.” Amid this turmoil, many investors succumbed to panic selling, exiting the market entirely. Placing the COVID-19 Crash in Historical Context To better understand the unique nature of the COVID-19 crash, let’s compare it to previous major market downturns: Crash Name Date Decline (%) Recovery Period (Months) Black Monday October 1987 ~22.6 ~3 Dot-com Bubble Burst March 2000 ~49.1 ~25 Global Financial Crisis September 2008 ~56.8 ...

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: 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: 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 Experimenting with Side Hustles to Build “Earning Power” Dividend ...

Rural vs Urban: 5 Key Facts to Know Before Choosing to Buy a HomeJanuary 27, 2025 Owning a home is one of the biggest decisions most people make in their lives. In rural areas, the mindset that "homeownership is the norm" remains deeply rooted. However, I currently choose to rent. This decision is largely influenced by the perspective I’ve gained through investing—viewing a home through the lens of asset value. In this article, I will delve into why I lean toward renting, discussing the realities of rural real estate markets and incorporating an investment-oriented viewpoint. By sharing concrete data and insights, I hope to help readers make informed decisions about homeownership versus renting. The Current State of Rural Homeownership In rural areas, several factors underpin the strong preference for homeownership: These factors perpetuate the belief that homeownership is "normal" in rural areas. However, this mindset carries risks that are often overlooked. Urban vs. Rural: A Data-Driven Comparison The table below highlights the differences in real estate markets and living environments between urban and rural areas, emphasizing the risks and challenges in rural homeownership. Category Urban Areas Rural Areas Population Trends +126,515 net migration gain (Tokyo region, 2023) Declining (overall net migration loss in rural areas) Vacancy Rates Low (below 5%) High (e.g., over 15%) Property Prices High (e.g., ¥3 million+ per tsubo in Minato Ward) Low (e.g., under ¥100,000 per tsubo in some areas) Redevelopment Projects Numerous (20+ major projects underway) Scarce (few or no projects) Average Commute Time ~60 minutes ~30 minutes Educational Facilities ...

Weekly Asset Management Report: Growth Rate, Dividends, and Reinforcement of Reinvestment Progress Overview of the Week This week, our overall portfolio performed steadily, with consistent dividend (distribution) income contributing to financial growth. A portion of these dividends was reinvested, further strengthening the cycle of wealth accumulation. In last week's report, "Enhancing Life with Dividends of ¥158,175 | Asset Management Report for Week 3 of January 2025", we discussed how dividends have been used to improve our quality of life. This week, the positive impact of this approach has continued, as reflected in the progress of total asset growth, detailed dividend breakdowns, and reinvestment efforts. This article delves into the growth rate of each asset class, the details of this week’s dividends, the reinvestment progress, and even some recent lifestyle changes. Growth Rate by Asset Class The following chart shows the weekly growth rate of each asset category. Notably, points (credit card and cashback points) recorded a significant increase of +17.24%, while the overall portfolio grew by a steady +2.19%. Details: Market Trends and Influences This Week's Dividend Results This week’s total dividend income amounted to ¥66,868, providing stable income growth. Breakdown of Dividends: Details: The dividends received were used for living expenses and reinvestment, laying the foundation for future portfolio growth. Monthly Dividend Total and Year-on-Year Comparison The cumulative dividend income for January reached ¥293,624, representing a 2.75x increase from ¥106,644 in January of the previous year. Key Factors Behind the Growth: Progress toward the annual dividend goal of ¥3 million stands at 9.8%, marking ...

My Journey with Dividends In 2019, I began implementing a dividend reinvestment strategy in earnest, starting with approximately ¥100,000 in annual dividends. Fast forward to 2024, and that amount has grown nearly twentyfold to ¥1.9 million in just five years. The key to this growth? Relentlessly reinvesting my dividends. By maintaining a frugal lifestyle and focusing on building my wealth, I was able to achieve this remarkable progress. Recently, however, I’ve started to consider not only “growing” my dividends but also “enjoying” them. Exploring how to use dividends has opened up new possibilities in my financial journey. For those just starting to accumulate dividends, I highly recommend being mindful of how you plan to use them. Striking a balance between growing your wealth and enjoying life is essential. Why I Started Investing and How My Strategy Evolved Before diving into investments, my assets were entirely in cash savings. Realizing the need for more effective wealth-building, I began investing and gradually reduced the cash portion of my portfolio to about 20% of my total assets. Initially, my primary focus was to grow my dividend income as an additional revenue stream beyond my salary. By reinvesting all my dividends and minimizing spending, I was able to significantly increase my assets. Now, I’m in a position to think about spending those dividends as well—whether on family experiences or personal growth. For instance, I’m looking forward to using dividends to fund future trips with my son, creating memories that will last a lifetime. Understanding Dividends and Investment Terms (For ...