Get Rich, Retire Early – 24 Year Old Man Invests £12 a Day to Build Passive Income for Life | Personal Finance | Finance

The earlier you start investing in life, the better. Small, regular amounts can roll over time and build a pile of passive income without having to lift a finger to earn it later in life. That’s the philosophy of Brandon Bree, a 24-year-old assistant retail manager from Bournemouth.

He doesn’t have special investment skills, but wants to achieve “financial independence” and give himself more control over his life.

Brandon figures he’s already three percent there and can retire whenever he chooses.

Fire movement, it signifies Financial freedom, retire earlyTurned the investment world upside down.

Those who follow it save early and save hard, with the goal of building retirement at a much earlier age than those who follow a more traditional retirement plan.

They save like crazy instead of playing.

Brandon is a fan. He pursues financial freedom through the old-fashioned approach of dividend investing.

Dividends are regular quarterly or biannual payments made by companies to reward shareholders for holding their shares.

Investors typically reinvest their dividends at a young age to buy even more shares, and then receive them as income in retirement.

London’s FTSE 100 has the highest dividend yield in the world. It is currently yielding 4.11 percent per annum.

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Buying individual company stocks is risky, so Brandon invests in spreading them through a low-cost exchange-traded fund (ETF). It is a cheap and simple way to invest in stocks.

He invests £200 a month in US-focused funds SPDR S&P UK Dividend Lords ETF And at £150 iShares UK Dividend ETF.

These popular funds can be bought into a stocks and shares Isa for tax-free income and growth.

In total, he invests £350 a month through the Social Investment Network eToroThat’s just £11.66 a day.

If Brandon invests that amount every month and his funds return an average of seven per cent a year, he will be worth £1.03 million by age 65.

If he increased his £350 contribution by three per cent each year to keep pace with Inplatino, he would have £1.42m. It may also give him the freedom to retire early.

This shows the benefits of investing early, rather than delaying until your 30s, 40s or 50s, when contributions have little time to grow.

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The cost-of-living crisis prompted Brandon to increase monthly contributions. “Everyone is so worried about money, and I don’t want that to be me in the future.”

He adds: “If you see the crisis as a reason to stop investing, you don’t understand the reason to invest in the first place.”

He already generates passive income of $35 (£32) a month from his US ETF, and income from his FTSE fund is growing.

“I reinvest all my dividends through my eToro account and get more shares and then more dividend income.

“It’s great because at the end of each month I get both a paycheck from my employer and dividend income from my portfolio.”

Sam North, an analyst at eToro, says that while there are no guarantees when investing, dividend stocks offer consistent payouts with low volatility. “Sectors like utilities and energy have become favorites for dividend hunters, especially this year.”

A recent eToro Retail Investor Beat survey found that one in five UK investors said early retirement was one of their top three objectives.

“Dividend payments can help investors achieve these goals by generating income before and after retirement,” North added.



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