Hi there, this post is supposed to be a more of a personal note or a goal for self, but I am sharing it publicly and sharing my plan. This plan is a step towards generating enough passive income to eventually replace my paycheck from job. And this earning has to have some sort of certainty, regardless of market goes up or down. I am not a trader, I do not know first thing about stock trading. I know somethings about analyzing a company, and I can analyze probability based on facts I have on my hand. I am sharing this plan, because I am yet to completely implement it and after living though a recession with my portfolio I am bit more certain that this plan will work for me and you. And this is a simple plan, so anyone can implement this.
I started buying and selling stocks in 2008, unfortunately I was not sure what to buy or why to buy, so, I was really late to the game and I started building portfolio after 2017. I have lost money in stocks, I have made some profits too. But, better days are ahead, since I am more wiser now and patient with my portfolio
So, How am I Planning to Earn 3.6 lacs per year From Stock Market?
I want to make this amount from dividends from stable businesses which are bound to be there in 50 years and probably will go up. I am going to share with you the list and quantity of share I will need to make 360000 in dividend per year. The question comes to mind, will this income be stable? There would be a high probability, better than trading stocks, but only challenge is, one will need knowledge of valuing a business or company and it needs capital, unlike trading, where one can start with 5000 rs.
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The above mentioned scripts will help me reach the goal. Few more points to remember, these are not only stocks I have, I have investment in some growth companies and I will not buy these at any price. REITS are not exactly equity instrument, they are more debt like instruments. I doubt that Coal india will survive 50 years in it’s current form.
This was more to show you it is possible to generate predictable and stable income with a stock portfolio and that would be passive income. I would suggest you to come up with a plan and implement that. If you do not understand stocks or companies then do not follow this plan.