Dividend Growth investment is always scary to the first time investors. I am one of them previously. I recall that I tend to look the price of the shares after purchasing the said shares at the beginning of the dividend investment journey. When the share prices dropped before my purchase price, I tend to start worrying on the decision in which I bought the share. I guess that this is a human instinct as panic button kicked in involuntarily and started casting doubt on the purchase decision. Now I don’t have such problem. I believe that it is entirely due to the eight years of cash stash in which I keep as the emergency fund. I know that the effort which I put in the dividend investment strategy will eventually reap reward. Furthermore, I spread the risk to many dividend yielding shares (i.e many baskets) and know that I will not be affected by the bankruptcy of few of these share counters. I allocate a fixed amount of the monies in each share counter.
If the worst case scenarios (i.e failure of all these share counters) occur, I still have the backup of my emergency fund to rely on. My current strategy is to channel all of the savings resulting from the monthly salary derived from my full-time employment with offsetting my expenses (such as personal and household allowances etc) to the shares investment. This is reinforced by the dividend generated from the prevailing shares currently in my portfolio.
I consider myself as FI at the current circumstance. I can retire early at any point of time when I want to do so. I lead a simple and minimalist lifestyle. I am content on this lifestyle and enjoy it to the fullest. I do not have packed schedule and allocate a lot of time to self-thought. Life is great!