akashgoswami_’s avatarakashgoswami_’s Twitter Archive—№ 5,222

  1. ☎️ HOW I OFFSET MY MONTHLY PHONE BILL ☎️ I recently tweeted about how I offset my monthly phone bill using dividends to bring it down to £0 a month I thought it would be a good idea to explain how I did it 🧵 (As always - not financial advice) @akashgoswami_/1427581236197928961
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      Step 1 - Cut down your monthly phone bill as much as possible ✂️ Having a lower monthly cost makes offsetting the bill a lot easier I’m on a £7.50 a month sim only plan. I also buy my phone outright and try to hold onto it for as long as possible (usually 3+ years)
      oh my god twitter doesn’t include alt text from images in their API
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        Step 2 - Find a good dividend-paying stock 🔍 I’m not going to recommend one but I went with a telecom stock for myself ⚠️ If you choose a US stock, dividend payments are subject to a 15% withholding tax (if you completed a W-8BEN, otherwise it’s 30%)
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          Step 3 - Work out how many shares you need to offset your bill ⚖️ Most dividends are paid every 3/6 months I used @dividendmax to help work out how many shares I needed to cover my bill and when the next ex-dividend and pay date was See example below 👇
          oh my god twitter doesn’t include alt text from images in their API
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            Step 4 - Buy the shares 🤑 Now you know how many you need, buy them and wait for your first dividend payment If you buy them within a Stocks & Shares ISA then you don’t have to pay any tax on any dividend income you earn
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              Step 5 - Reinvest or/and work on offsetting your other bills 🔥 You can either reinvest your dividends and buy more shares or withdraw them as cash to pay your bill You could also look into offsetting your other bills as well but there are some things to be aware of (see below)
              oh my god twitter doesn’t include alt text from images in their API
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                🚨 Disclaimers (1/2) This is a really rough guide - I'd recommend doing more research if this is something you want to do Stocks can fluctuate in price & dividends can be cut/reduced (look at what happened to UK financial stocks in 2020)
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                  🚨 Disclaimers (2/2) Additionally, you usually need a considerable number of shares to make this work - it can get expensive 💸, so it's really important to get your numbers right (check the dividend yield date, how much a single share costs, how many shares you need, etc.)
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