How To Create Your Own Universal Basic Income


Universal Basic Income (UBI) seems to be popping up in the news again. It seems that policy makers cannot decide whether the benefits of UBI outweighs the costs. There has been numerous trial UBI projects over the years conducted in countries such as Kenya, India, the United States and Canada but results have so far been inconclusive. In fact, a report by British think-tank the New Economics Foundation (NEF) has found “no evidence that any version of UBI can be affordable, inclusive, sufficient, and sustainable at the same time.”



So if you are one of the people sitting around waiting for UBI to be implemented on a large scale, I wouldn’t hold my breath. On the other hand you can take action. You can take steps and implement a plan to build your own Universal Basic Income Scheme.

Universal Basic Income (UBI) is a form of social security that guarantees a certain amount of money to every citizen within a given governed population, without having to pass a test or fulfil a work requirement. Unlike universal benefits such as healthcare or unemployment payments are provided to all who need it, UBI is provided to all regardless of need.

The reason many call for a Universal Basic Income is the fear that automation will lead to widespread unemployment. Advocates also say that UBI a way to reduce poverty and inequality.

On the other hand, the major detraction of UBI is the cost of such a programme. The International Labour Office (ILO) has calculated the costs of UBI in 130 countries, finding that “for most world regions, the average costs ,,, are in the range from 20 to 30 per cent of GDP.”

Create Your Own Basic Income Programme

So whilst receiving free money on a regular basis from the government doesn’t seem all too likely at the moment, you can build your own basic income programme today.

I for one am building my own basic income programme. But instead of receiving money from government, I am am receiving money from the largest corporations in the world such as Coca Cola, Nike and Unilever on a regular basis via dividends.

The money I receive from dividends is purely passive.There is no effort on my part to receive it. The money flows into my pocket whilst I sleep, eat, vacation or just sit around watching TV. I simply have to hold on to my ownership stakes in high-quality businesses. And as these businesses make a profit, they send a portion of that to me in the form of dividends in accordance to my ownership stake.

And as these companies grow their profits, they ship higher and higher dividend payments to me. So the money I receive on a regular basis is not stagnant, it is in fact going at a rate faster than inflation!

One of the biggest companies I own is Procter & Gamble. The company makes products such as Fairy dishwashing liquid, Ariel washing powder, Gillette razor blades and Fabreeze air freshener.

The company recently increased its dividend by over 4% which is double the inflation rate! Procter & Gamble has a long history of increasing its dividend. In fact, it has increased its dividend for 62 years in a row! During this period there has been multiple recessions, including the worst meltdown since the Great Depression, the dot-com bubble and the housing bubble, the Asian financial crises, multiple international wars, ballooning government deficits, exploding national debt, countless natural disasters, political earthquakes and a maelstrom of regulatory changes in the financial industry, and Procter and Gamble still managed to increase their dividends during each of those years. This is truly amazing and that is why I aim to invest in companies like Procter & Gamble.

Procter & Gamble’s above average inflationary increases is something very important. You don’t want your money losing purchasing power and being eroded by tax.

On the other had, I am not sure how much basic income will grow every year. If we take current benefits as a benchmark, I do not expect growth to be much in excess of inflation.

That is why I find my way of creating basic income superior to any which the government may provide.

And if the government was to one day implement a basic income programme, I would be a beneficiary as well. I would have two basic incomes – one from the government and one I’ve built myself via high-quality dividend growth stocks.

But I don’t stay awake at night wondering whether a government backed universal basic income will come. Instead I am focussed on building a solid portfolio of dividend growth stocks that will regularly throw cash my way which I can use to cover my expenses and make me financially independent.




Building my own basic income helps me sleep better at night. I don’t have to worry about automation and how a robot could potentially take my job.

In fact, even if the UK government had to introduce basic income, research by the OECD has shown that to stick to a budget-neutral basic income, it would only be able to disburse £230 monthly to each adult. This is no where enough to live in.

My idea of a basic income is for it to be enough for one to cover all expenses and live in. For it to make one financially free. That way a person is in control of their time and can chose what to do with their life. They are free from the shackles of drudgery. This is why I am building my own basic income – so it can be sufficient to cover all my expenses. For it to make me financially free.

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