1. Determine how much money you have avaliable to save & invest.

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2. Take at least 10% of that and invest it in the highest-yielding cash-equivalent option available. The Wealthrfront and Betterment Cash Reserve accounts are examples of this. As of April 19, 2025, they each pay you 4% interest with no risk of losing any money and almost instantaneous withdrawal ability.

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3. Take the remainder (potentially 90%) and invest that in the highest dividend paying safe value stocks that you can identify. These will be stocks wth high dividend yields (DY) and low price to earnings (PE) ratios. Additionally, these stocks will be in industries that have been around a long time and are stable (i.e., oil & gas, mining, etc.) Reinvest the dividends earned in the same stocks or into better stocks that you later identify.

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4. The high dividend paying safe value stocks you're invested in should increase in value over time. If you identify better high dividend safe value stocks to invest in, sell your old stocks and take the capital gains, and reinvest the proceeds into the better stocks that you have identified.

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5. Keep increasing the amount of money that you have invested in stocks that meet the above criteria until the dividends you receive reach the amount that will give you financial freedom (i.e., freedom from having to work).

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For further details and specifics, please read our blog posts on investing.