Ah, fall approaches again. Isn’t this a great time of the year? What makes it even more remarkable is that fall is the season of dividends and royalties.
Last year, when I wrote “How to FALL into Investing,” I earned $430/month in dividend income. This year, I am over $1,000 in dividends for the month.
That is impressive growth, and it looks to continue into this fall. Let’s be honest, what have you achieved over the last year?
The Emotional Roller Coaster of Debt
I’m not here to call you out but to get you to think critically. Isn’t it time you harness the power of compounding and exponential growth on your side?
Why invest? I do not go back and reread my previous articles before making sequels. So these may be the exact words as last year, but let’s continue.
Before becoming an investor, you must find your reason. This mission statement will keep you invested during recessions and downturns.
My “why” has to do with my family. As I wrote yesterday in “The Maintenance of a Great Life #1: Relationships,” relationships are the most challenging yet most fulfilling part of life.
Dividend Investing in Your 30s
I never want my family to worry about money, so I make it a point to invest with the future in mind. I want my money to become THEIR wealth. The thought of my kids struggling through life used to keep me up at night.
However, I no longer worry about the future once I learned how to “create” money and build wealth slowly. Whatever issue arises, my kids and I can solve it together.
Find your “why.” Now it’s your turn. Do you hate being broke? I hated the feeling of advancing in my job, earning promotions, and still not having money. I wrote a series on going from a broke joke to an investing guru. I’ll link it below.
- Being Broke Isn’t Cute #1: Why Are You Broke?
- Being Broke Isn’t Cute #2: Getting on the Right Path
- Being Broke Isn’t Cute #3: Becoming Debt-Free
- Being Broke Isn’t Cute #4: Saving & Investing
What else keeps you up at night? Do you want to put your kids or grandkids in private school? Or better yet, how about homeschooling?
Start a Sports League towards Passive Income
Do you want to own a large lot so your pets can run freely? How about retiring overseas or on a homestead? All of these things require large amounts of passive income. So let’s begin our journey this fall.
Start your investing journey. It’s time to get started on this life-changing adventure. I would love to say go read some books first, but it is much easier once you have some “skin in the game.”
I recommend investing $100-$200 in the markets first. Let this money sit in your STASH account and watch it fluctuate daily.
However, you’ll receive that sweet, sweet dividend income regardless of market gyrations. Receiving dividends is a feeling like no other, and tasting this piece of heaven will push you to invest more.
The Magic of a Sales Funnel
Your first five dividend stocks. I wrote an article six months ago that rings true today. “Your First Five Dividend Stocks” walks you through how to pick your first stocks.
I love this strategy because it covers my three types of dividend investing: index funds, dividend growth, and income investing. Your first five stocks look like this:
- Index Fund: I always start with the Vanguard Total Market (VTI).
- Income Investing. This is your monthly payer. I always start with AGNC (AGNC) because closed-end funds like Pimco Dynamic Fund (PDI) aren’t available on STASH.
- DGI (January). Last, you’ll need a dividend growth stock for each of the three quarterly payers. For January, I would choose Phillip Morris (PM).
- DGI (February). I would choose AT&T (T).
- DGI (March). I would go with one of my favorites, McDonald’s (MCD).
There are so many more stocks and strategies to choose from that it can seem overwhelming. Just focus on picking your first five and watching them grow.
Income Investing vs. Index Funds
Collecting dividends. I invest for income. Most people love to watch their investments grow as the numbers become larger—we call these capital gains.
If you were a real estate investor, you’d have to ask yourself a question. Do you want the value of your house to grow (appreciate) more or the amount of rent you collect?
I would let my house stay the same value if my rents were rising considerably. I want the home’s cash flow, not the house’s price tag. Price appreciation is a bonus!
If you were a farmer, would you want your chickens to lay eggs that you could eat or sell, or do you want to sell the chicken at the market?
Understanding your preferred investing style (capital gains or cash flow) will help you pick the right stocks for your portfolio and mindset.
Start a Tutoring Business towards Passive Income
Serious investors want cash flow. The genuinely wealthy invest for cash flow by buying businesses, properties, stocks, bonds, and commodities that produce large amounts of passive income.
You, too, can get into the cash flow game by investing for dividends. Your dividend income will start very slowly, probably with a few cents or a dollar.
However, if you can keep at it, your portfolio will start producing significant cash flow that you can use for anything you desire.
I have used my dividends over the last month as I transition from Japan to San Diego. It feels good to have a magical $1,000 paycheck to leverage when necessary.
Conclusion. So what is your plan for fall this year? Are you planning to spend a lot of money during Black Friday and Christmas?
Advertising vs. Content Marketing
A better question is, are you in a financial position to spend money for Black Friday? Wouldn’t it be nice to have McDonald’s or AT&T pay for your Christmas presents this year?
I am not a big holiday shopper. However, I plan on shopping with dividends for the rest of my life. I can use my $1,000 dividend paycheck on a guilt-free shopping spree.
I can shop without guilt, knowing that next month, whether I work or not, I have another $1,000 coming my way. That’s the magic of dividends and passive income.
I hope you have a wonderful fall season this year. Make it memorable by investing in the future. I wake up every morning knowing I have the financial education, mindset, and leverage to take care of my family through any situation. Now that’s the ultimate Christmas present. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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