Passive income from dividend investing
Dividends are one of the best-known sources of passive income, but a meaningful dividend stream only builds up after years of saving. This guide shows you how to start in a controlled way, how dividends are taxed in Finland and which risks to prepare for.
You will need
- Online banking credentials
- A book-entry account or an equity savings account (osakesäästötili)
- A monthly budget
- An emergency fund covering 1–3 months of expenses
- Login for MyTax (OmaVero)
Steps
Build a buffer first
Keep 1–3 months of expenses in an ordinary bank account before you invest. That way you won't have to sell shares at a bad moment because of an unexpected bill. Pay off expensive consumer loans first, too.
Choose the account type
Decide on a monthly amount
Diversify widely
Don't chase the highest dividend
Understand the taxation
Check your pre-completed tax return
Work out a realistic expectation
Review once a year
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