Why a Salaryman Who Only Did Index Investing Started High-Dividend Stocks | Wanting to Enjoy the Present, Not Just the Future

Nice to meet you. I am Elcon.

While working as a company employee, I am building assets through NISA, iDeCo, and high-dividend stocks.

It has been about 6 years since I started investing.

Currently, my investment assets have exceeded 20 million yen, but I was not investing like this from the beginning.

When I first started investing, I focused on index investing using NISA.

Partway through, I also started investing in high-dividend stocks.

Why did I start high-dividend stocks while continuing index investing?

The biggest reason was that

I started to think, “I want to improve my current life, not just for the future.”

This time, I would like to write about the reasons why I, an ordinary company employee, started investing, and why I, who only did index investing, started high-dividend stocks.

Started investing due to anxiety about old age

The reason I started investing is nothing special.

I had anxiety about my old age and thought it was a waste to just leave money in the bank.

And, I was originally interested in investing itself.

From there, I started index investing using NISA.

When I first started investing, I was not doing investments like actively buying and selling individual stocks.

I would steadily accumulate investment trusts and build assets over a long period of time.

This method suited me well while continuing to work as a company employee.

I still continue index investing even now, and I intend to continue it in the future.

My assets are growing. But my “present” hasn’t changed much

As I continued with index investing, my assets gradually increased.

Of course, I am happy that my assets are growing.

My anxiety about old age has also decreased compared to before I started investing.

However, as I continued, I had one thought.

“My assets are growing, but my current life hasn’t changed much.”

I believe index investing is a very good method for building assets for the future.

But basically, it involves selling off the accumulated assets to use in the future.

Of course, there is nothing wrong with that.

However, in my case, instead of just growing money for the future,

“I also want to make my current life a little richer.”

I started to think that.

That’s why I started high-dividend stocks

That’s when I became interested in high-dividend stocks.

With high-dividend stocks, you can receive dividends while holding the stocks.

You get money you can use regularly without having to sell your assets.

This mechanism suited my way of thinking.

In my case,

“Index investing is ‘money for the future'”

“High-dividend stocks are ‘money that can also be used for current life'”

I use them differently with that feeling in mind.

It is not a matter of which one is superior.

I think index investing alone is fine, and high-dividend stocks naturally have risks as well.

I myself have not stopped index investing.

By combining both, I have achieved asset formation that I am satisfied with.

Currently over 20 million yen in investment assets

Currently, I am building my assets by combining index investing, high-dividend stocks, iDeCo, and more.

The rough breakdown is,

・Investment trusts: approx. 11 million yen
・Stocks (mainly high-dividend stocks): approx. 8 million yen
・iDeCo: approx. 2.7 million yen
・Crypto assets: approx. 2.8 million yen

In total, it is about 24.5 million yen.

Of course, the amount changes daily depending on the market.

About 6 years ago when I started investing, I didn’t think it would grow this much.

However, I didn’t increase it all at once in a short period.

I have built it up little by little by continuing monthly contributions and buying high-dividend stocks when I received bonuses.

I use dividends almost entirely for family trips

One of the things I feel was good about starting high-dividend stocks is that I receive money I can actually use.

The dividends I plan to receive this year are about 260,000 yen annually.

And in my household,

“We cover most of our travel expenses with dividends.”

If I reinvest the dividends, I could increase my assets even further.

I understand that way of thinking, too.

If you only think about maximizing your assets, I think there are times when reinvesting is more efficient.

However, I don’t believe you need to put everything toward the future.

Traveling with the family while the children are still young.

Going to various places together and making memories.

These are things that cannot be recovered later once you have saved up money.

“I also want to cherish things that can only be done now.”

That is why I have decided to use my dividends.

When I receive dividends, I don’t just think, “My assets have increased again,” but also,

“We can go on a family trip again this year.”

I can think that.

For me, this feeling has become a major reason for continuing with high-dividend stocks.

Cut fixed costs. But don’t cut out current enjoyment.

Of course, I am not spending money as much as I like.

I manage my household finances with Money Forward ME, and I review fixed costs like communication expenses, insurance, and electricity bills as much as possible.

While using services like Rakuten, I try to cut where I can without strain.

On the other hand, I have no intention of cutting things that I believe are important to us, such as family trips.

What I value is,

“Cut fixed costs. But don’t cut out current enjoyment.”

This way of thinking.

Save money, invest, and increase your assets.

If that becomes the only goal, I feel like something is a bit off.

Money is ultimately meant to be used.

Preparing for the future while also enjoying life right now.

I want to continue building assets while maintaining that balance.

What I want to write about in this note

In this note, I will write about the household management and investing that I, as a salaryman, actually do.

NISA, index investing, high-dividend stocks, iDeCo, reviewing fixed costs, how to use dividends, and more.

Rather than teaching something as an investment expert,

I intend to write about “how an ordinary salaryman is actually building assets”

by incorporating my own experiences and actual figures.

I hope to write not only about what went well, but also about what I am struggling with and what I have failed at.

Money for the future is important.

But things you can only do now are also important.

“Preparing for the future while enjoying the present.”

This is the basic policy of my asset formation.

I would be happy if there is anything here that can be of even a little help to those who are thinking, “I want to invest for the future, but I also want to enjoy my life now.”