There’s a big difference between investing and building an income machine.
Anyone can put money into Australian shares. But turning small, regular contributions into a portfolio that pays you $50,000 a year is about designing something with a clear end goal.
If you are investing $300 a month, here is how that journey could realistically unfold.
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Think in terms of income
A $50,000 annual second income, based on a 5% dividend yield, requires a portfolio of around $1 million.
That number might seem daunting at first. But when you break it down into monthly contributions and long-term compounding, it becomes far more achievable.
In the early years, the focus should not be on dividends at all. It should…
