When I wrote about dividends over the years, it was about cash expenditures for stocks, funds and alternative investments.
However, dividends are more than just a money-making brokerage account.
Years of savings, investing and operating a business now pay another return:
Lifestyle dividends – Build an adequate financial foundation and the freedom, flexibility and opportunities that a solo business brings.
Sometimes this means attending a midday school event or choosing an unusual working hours.
This summer, that means traveling to the UK and Scotland with my family.
For three full weeks we visited historic castles and world-class museums, explored the Scottish Highlands and dramatic landscapes of the Isle of Skye, and had countless time to spend with the family.
What makes especially sense to me is that travel itself is not that possible.
Financially, we fund travel through a combination of credit card points, stock and ETF dividends, savings and business income rather than wages.
Without an office job, I don’t have to ask about permission or plan around project dates or client’s agenda. I can start business instantly.
The destination is incredible and we have more adventures in the pipeline.
But the biggest dividend comes from extra time and memorable experiences with my kids, which was made possible due to self-employed careers and decades of investment.
journey
During our UK trip, Mrs. RBD and I made occasional mistakes, saying, “After this, we will get ice cream”.
Well, of course, “this” quickly became very boring – even if we were one of the best museums in the world or 800-year-old cathedral.
Kids often want to be in the next place, rather than enjoying their place.
On a trip day from London to Edinburgh, engineers caused a power outage, stopping all inbound and outbound trains Kings Off-Road Station.
My 11-year-old daughter kicked us out of the second train and they cried because they didn’t leave.
She had to spend a few hours on Platform 5 as we waited, not far from Platform 9 3/4 Where Harry Potter Catched his classmates Hogwarts Express.
Very cool for someone who reads every book 10 times.
Eventually, they solved the problem and we were a few hours late.
But the situation seemed like a terrible situation at the time, one of her preferred stories when people asked her about this trip.
If my kids remember anything on this trip, it’s to enjoy the journey as much as the destination.
I should know
Traveling was my initial motivation for pursuing early retirement, which is why I started saving and investing so aggressively decades ago.
But as time goes by, the stronger motivation for early retirement escapes an unfulfilling career.
That’s an unhealthy view.
I should know better, just as I learned about “journey” early in my trip.
It took years to build an online business to realize that enjoying the flexibility and opportunity of entrepreneurship is much better for me than trying to get away completely.
I value control over my time and daily decisions more than I value stable income or professional success traps.
Having a business that I could run from anywhere in the world achieved what I originally wanted to set my early retirement goals – earlier trips.
The family part is a reward.
Success and control
When I finally left my career to become a full-time online content creator in late 2022, I gave up on the idea of early retirement.
Some newsletter subscribers don’t subscribe because I’m no longer the one who doesn’t like his job and invests in escape routes.
The character resonated.
In a sense, I stopped looking for dividends in favor of lifestyle dividends.
I always admire people who work for careers they really like, but it wasn’t until about five years ago that I thought it might be me.
I have seen friends, colleagues and acquaintances in a successful and fulfilling career.
But as success sometimes lasts for a long time, club membership, private school tuition, a down-to-morrow commute, a vacation home mortgage, and two $1,000+ car payments.
For them and anyone who cares, this is a success.
But from my point of view, this is a kind of restriction without exit plans.
Maybe if I got two to three times my career salary at work, I would see something different.
High-income earners are willing to sacrifice certain lifestyle choices for career success and the reputation or admiration that comes with it.
However, success and lifestyle inflation can lead to losing control of time.
For some, trade-offs are OK.
For others, they found my blog and wrote me an email.
However, this is not black and white. Everyone falls into the scope, balancing financial success with controlling time and lifestyle control.
When I left work, I chose control over career success.
I stick to this control today and think my lifestyle dividend is a better indicator of success than a stable salary.
Ultimately, the dividends I care most were not deposited into my brokerage account – they appeared in my calendar, autonomy, and my memories with my family.
Craig Stephens
Craig is a former IT professional who left his 19-year career to become a full-time financial writer. He has been a DIY investor since 1995, and he began retirement in 2013 as a creative outlet for sharing his portfolio. Craig studied finance at Michigan State University and lived in Northern Virginia with his wife and three children. Read more.
Favorite tools and investment services (sponsored):
Travel Reward Card – My spending and travel rewards credit card.
Authorization – Free Net Worth & Portfolio Tracking + Retirement Plan. Users since 2015.
Boldin – Insufficient spreadsheets. Build financial confidence. (Review)
Determine dividends – Free download of research dividend stocks (comments):
