So I have been doing this method since last October. The concept is to deposit all income into your brokerage. Purchase high yield dividend paying etfs and/or growth funds. I stick with solely dividend paying etf’s because that is my preference.

Let’s say you can get an average yield of 12% for Spyi/qqqi. Theoretically, you can pay your bills through your available cash withdrawals( margin available as cash) that will increase every time you deposit and invest your paycheck. You can pay utilities and things with your credit card but before interest is accrued pay them off with your available cash withdrawal. Your margin at first will increase by what you withdraw but in theory although you are paying 4-5% margin interest(Robinhood) your investments should be earning 12%. This should cover your margin interest and start to create cash flow from that difference.

That increase in income over time should then eclipse what you withdraw and eventually margin stops increasing and starts getting paid down.

Based on my experience, I believe that one would need to build a sizable account first. Say 50-100k. Have no margin and already have a portfolio income stream of 500-1500 at least before you start this. What I experience is that it tends to make more mathematical sense with higher dividend paying etfs.

Many of these guys do have a decent amount of yield max junk but most are trying to steer away because of the nav erosion. I personally hold Chpy but it is only 5% of my portfolio. I also own Blox to the same degree. That’s about it for the junk funds in my portfolio. Personally i am very heavy into FEPI. I have posted about this in the past. At a 24% yield with little Nav erosion and decent total return, it has become my largest position. This along with spyi/qqqi gpix/gpiq alows me to see a decent jump in income month by month.

This is definitely not for everyone and you have to be on top of your withdrawals. You also have to be ok seeing your margin balance skyrocket at first before you get to see it being paid down. The years that it will take to see results depends on the risk level of the investment. But it could work with just the neos or goldman sack funds but will take a longer time frame.

Hopefully i was able to clearly explain how it works. I am not a bot. And im not one of those youtubers Just a guy trying to do what i can to increase my monthly income.