How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year

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How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year

MotleyFool2023-02-07

Building a passive income from ASX shares is something that anyone can do. And while it doesn’t happen overnight, if you’re both disciplined and patient, generating a $20,000 second income from ASX ...

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MilWha
·2023-02-07
This sharing open my eyes as a newbie on what kind of stock market is best to generate a good passive income over the next few years or I can just say, annually once the stock yields positive divident 👏👍much thanks for the head-start!
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And while it doesn’t happen overnight, if you’re both disciplined and patient, generating a $20,000 second income from ASX ...</p>\n\n<a href=\"https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/\">Source Link</a>\n\n</div>\n","source":"motleyfoolau_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-02-07 10:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Building a passive income from ASX shares is something that anyone can do. And while it doesn’t happen overnight, if you’re both disciplined and patient, generating a $20,000 second income from ASX ...</p>\n\n<a href=\"https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7067","symbol_name":"生物科技","start_time":0,"source_url":"https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/","article_id":"2309347491","we_media_id":null,"thumbnails":["https://cdn-dfpai.nitrocdn.com/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv/assets/images/optimized/rev-339851c/wp-content/uploads/2022/05/Businesswoman-received-a-stack-of-cash-16_9-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2309347491","pubTimestamp":1675737333,"sourceInfo":{"source_id":"motleyfoolau_stock","name":"MotleyFool"},"weMediaInfo":null,"summary":"Building a passive income from ASX shares is something that anyone can do. 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Getting started Firstly, in order to get a $20,000 a year paycheck from the share market, you’re going to have to build your portfolio to a size that yields this amount in dividends. Given that many banks like Westpac Banking Corp (ASX: WBC) and high-yield ASX ETFs offer 6% yields for investors, we’ll base our calculations on that. To be paid $20,000 of dividends each year when earning a 6% dividend yield, you’ll need a portfolio of ASX shares valued at approximately $330,000. When you’re starting out, that might seem like an unattainable goal, but I don’t believe it is. Once again, it’s all about patience and discipline. Over the long term, share markets have provided investors with an average annual return of 10%. Unfortunately, I cannot guarantee that this will be the case in the future, but I would be disappointed if future share market returns are not in line with historical levels. If you’re able to invest $300 a month into high-quality ASX shares and generate a 10% average annual return, your portfolio will have grown to be worth $335,000 in 24 years. At that point, you could switch your focus to income and build a diversified portfolio filled with ASX shares offering dividend yields averaging 6%. Doing so would give you a $20,000 second income without having to lift a finger. Speedier options Investors who are able to put a little bit extra into their monthly investments will get there even quicker. For example, investing $500 would grow your portfolio to the required size after a little over 19 years. Can stretch your budget further? Well, $750 would take a touch over 15 years to hit our goal. Which ASX shares should you buy? I would focus on buying ASX shares with strong business models, excellent management teams, competitive advantages, and positive growth outlooks. Companies such as CSL Limited (ASX: CSL), Domino’s Pizza Enterprises Ltd (ASX: DMP), and Goodman Group (ASX: GMG) tick a lot of these boxes for me. Alternatively, you could take the easy option and buy index-tracking ETFs like Betashares Nasdaq 100 ETF (ASX: NDQ) or Vanguard Australian Shares Index ETF (ASX: VAS). These funds aim to provide you with the return of the respective index before fees.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9955720694,"gmtCreate":1675778415118,"gmtModify":1675780339914,"author":{"id":"4136874126729862","authorId":"4136874126729862","name":"MilWha","avatar":"https://community-static.tradeup.com/news/bfb7e93c464f9ce8b9de3f8e14ccb7da","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":2,"crmLevelSwitch":1,"idStr":"4136874126729862","authorIdStr":"4136874126729862"},"htmlText":"This sharing open my eyes as a newbie on what kind of stock market is best to generate a good passive income over the next few years or I can just say, annually once the stock yields positive divident 👏👍much thanks for the head-start!","listText":"This sharing open my eyes as a newbie on what kind of stock market is best to generate a good passive income over the next few years or I can just say, annually once the stock yields positive divident 👏👍much thanks for the head-start!","text":"This sharing open my eyes as a newbie on what kind of stock market is best to generate a good passive income over the next few years or I can just say, annually once the stock yields positive divident 👏👍much thanks for the head-start!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9955720694","repostId":2309347491,"repostType":2,"repost":{"id":"2309347491","kind":"highlight","pubTimestamp":1675737333,"share":"https://ttm.financial/m/news/2309347491?lang=&edition=fundamental","pubTime":"2023-02-07 10:35","market":"hk","language":"en","title":"How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year","url":"https://stock-news.laohu8.com/highlight/detail?id=2309347491","media":"MotleyFool","summary":"Building a passive income from ASX shares is something that anyone can do. And while it doesn’t happ","content":"<html><body><div> <p>Building a passive income from ASX shares is something that anyone can do.</p> <p>And while it doesn’t happen overnight, if you’re both disciplined and patient, generating a $20,000 second income from ASX shares is very achievable, even by making modest investments, thanks to compounding.</p> <h2>Getting started</h2> <p>Firstly, in order to get a $20,000 a year paycheck from the share market, you’re going to have to build your portfolio to a size that yields this amount in dividends.</p> <p>Given that many banks like <strong>Westpac Banking Corp</strong> (ASX: WBC) and high-yield ASX ETFs offer 6% yields for investors, we’ll base our calculations on that.</p> <p>To be paid $20,000 of dividends each year when earning a 6% dividend yield, you’ll need a portfolio of ASX shares valued at approximately $330,000.</p> <p>When you’re starting out, that might seem like an unattainable goal, but I don’t believe it is. Once again, it’s all about patience and discipline.</p> <p>Over the long term, share markets have provided investors with an average annual return of 10%. Unfortunately, I cannot guarantee that this will be the case in the future, but I would be disappointed if future share market returns are not in line with historical levels.</p> <p>If you’re able to invest $300 a month into high-quality ASX shares and generate a 10% average annual return, your portfolio will have grown to be worth $335,000 in 24 years.</p> <p>At that point, you could switch your focus to income and build a diversified portfolio filled with ASX shares offering dividend yields averaging 6%. Doing so would give you a $20,000 second income without having to lift a finger.</p> <h2>Speedier options</h2> <p>Investors who are able to put a little bit extra into their monthly investments will get there even quicker.</p> <p>For example, investing $500 would grow your portfolio to the required size after a little over 19 years.</p> <p>Can stretch your budget further? Well, $750 would take a touch over 15 years to hit our goal.</p> <h2>Which ASX shares should you buy?</h2> <p>I would focus on buying ASX shares with strong business models, excellent management teams, competitive advantages, and positive growth outlooks.</p> <p>Companies such as <strong>CSL Limited</strong> (ASX: CSL), <strong>Domino’s Pizza Enterprises Ltd</strong> (ASX: DMP), and <strong>Goodman Group </strong>(ASX: GMG) tick a lot of these boxes for me.</p> <p>Alternatively, you could take the easy option and buy index-tracking ETFs like <strong><a href=\"https://laohu8.com/S/NDQ.AU\">Betashares Nasdaq 100</a> ETF</strong> (ASX: NDQ) or <strong><a href=\"https://laohu8.com/S/VAS.AU\">Vanguard Australian Shares</a> Index ETF</strong> (ASX: VAS). These funds aim to provide you with the return of the respective index before fees.</p> </div></body></html>","source":"motleyfoolau_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-02-07 10:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/><strong>MotleyFool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Building a passive income from ASX shares is something that anyone can do. And while it doesn’t happen overnight, if you’re both disciplined and patient, generating a $20,000 second income from ASX ...</p>\n\n<a href=\"https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://cdn-dfpai.nitrocdn.com/gJsEsVaCFesDAEYOdjncMdcuJdoeUsXv/assets/images/optimized/rev-339851c/wp-content/uploads/2022/05/Businesswoman-received-a-stack-of-cash-16_9-150x150.jpg","relate_stocks":{"BK7511":"ESG概念","BK7501":"新冠治疗股","BK7135":"综合性银行","GMG.AU":"GOODMAN GROUP","BK7508":"医药生物股","WBC.AU":"WESTPAC BANKING CORPORATION","VAS.AU":"VANGUARD AUST SHARES IDX ETF","NDQ.AU":"BETASHARES NASDAQ 100 ETF","BK7510":"REITs概念","BK7067":"生物科技","DMP.AU":"Domino's Pizza Enterprises Ltd","BK7137":"餐馆","CSL.AU":"CSL LIMITED","BK7099":"工业房地产投资信托"},"source_url":"https://www.fool.com.au/2023/02/07/how-id-invest-300-a-month-in-asx-shares-to-target-an-extra-income-of-20000-per-year/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2309347491","content_text":"Building a passive income from ASX shares is something that anyone can do. And while it doesn’t happen overnight, if you’re both disciplined and patient, generating a $20,000 second income from ASX shares is very achievable, even by making modest investments, thanks to compounding. Getting started Firstly, in order to get a $20,000 a year paycheck from the share market, you’re going to have to build your portfolio to a size that yields this amount in dividends. Given that many banks like Westpac Banking Corp (ASX: WBC) and high-yield ASX ETFs offer 6% yields for investors, we’ll base our calculations on that. To be paid $20,000 of dividends each year when earning a 6% dividend yield, you’ll need a portfolio of ASX shares valued at approximately $330,000. When you’re starting out, that might seem like an unattainable goal, but I don’t believe it is. Once again, it’s all about patience and discipline. Over the long term, share markets have provided investors with an average annual return of 10%. Unfortunately, I cannot guarantee that this will be the case in the future, but I would be disappointed if future share market returns are not in line with historical levels. If you’re able to invest $300 a month into high-quality ASX shares and generate a 10% average annual return, your portfolio will have grown to be worth $335,000 in 24 years. At that point, you could switch your focus to income and build a diversified portfolio filled with ASX shares offering dividend yields averaging 6%. Doing so would give you a $20,000 second income without having to lift a finger. Speedier options Investors who are able to put a little bit extra into their monthly investments will get there even quicker. For example, investing $500 would grow your portfolio to the required size after a little over 19 years. Can stretch your budget further? Well, $750 would take a touch over 15 years to hit our goal. Which ASX shares should you buy? I would focus on buying ASX shares with strong business models, excellent management teams, competitive advantages, and positive growth outlooks. Companies such as CSL Limited (ASX: CSL), Domino’s Pizza Enterprises Ltd (ASX: DMP), and Goodman Group (ASX: GMG) tick a lot of these boxes for me. Alternatively, you could take the easy option and buy index-tracking ETFs like Betashares Nasdaq 100 ETF (ASX: NDQ) or Vanguard Australian Shares Index ETF (ASX: VAS). These funds aim to provide you with the return of the respective index before fees.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":1,"commentSize":1,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}