Unscripted
General money management
Establish a paycheck pot for passive income

Establish a paycheck pot for passive income

from Unscripted: Life, Liberty, and the Pursuit of Entrepreneurship by M.J. DeMarco

How to Apply This

  1. Focus on investing for income, not growth.
    Look for established companies with a history of stable or increasing dividends. Consider investing in dividend stocks, ETFs, bonds, closed-end funds, and mutual funds.
  2. Divide your portfolio into three parts.
    Each part should have assets that pay dividends in different months.
  3. Calculate the portfolio yield.
    Divide the total dividends by the principal investment to determine the portfolio yield.
  4. Take advantage of favorable tax treatment.
    Dividend stocks held for more than four months receive favorable tax treatment.
  5. Follow the rent and snap rules.
    Make sure investments are reliable and can be quickly converted back to cash if needed.
  6. Monitor and rebalance investments.
    Regularly review investments to make sure they are performing as expected. Rebalance investments periodically to maintain the desired asset allocation.

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