I believe in spending as a portion of income instead of asset.


For dividend investors, when we look at dividend returns, do we look at it from angle of cash assets from company cash or is it from
Free cash flow?


I believe that in order for dividend returns to be substainable, it should be from what is recurring.


When we spend a portion of recurring income while
Leaving capital untouched, we can use the capital to invest and in return even higher cash flow. Hence, I believe in spending as a portion of recurring income instead of vs assets. Similar to how we evaluate dividend companies.


With regards to 1:100 or 1:1000. Using the same approach, but vs income. When income is $4000, spending $4 won’t be painful. But spending $40 builds up rapidly.


Hence, before income is high enough to spend at 1:1000 rate, the focus should be on accumulating assets to get high enough active + passive income before spending to reward ourselves. But then, that’s just my POV.