Tag: Dividends
Change Your Money Cycle: Your Spending Habits Determine Your Wealth
We hit the jackpot by being born in America. We have the chance to go from broke to rich in one lifetime. Heck, we can achieve incredible wealth in 20 years if we truly try. Unfortunately, most people will never seize this fantastic opportunity. Not because they didn’t work hard but because their money cycle…
Rental Income vs. Income Investing
Every middle-class American should aim to achieve three types of passive income: dividends, rents, and royalties. We ALL have access to these types of passive income; we need only make an effort to build these revenue streams as early as possible. If you are a young person just starting in the world, which is the…
Dividend ETFs vs. Index Funds
A few improvements to investing have changed the game for the average middle-class investor. These are fractional shares, zero commission fees, and automated investing. Today, we can invest $5/week into our favorite index funds and dividend ETFs to slowly grow our portfolio. Plus, we can still go all in with $5,000 when we get our…
Pay Your Bills with Dividends
Dividend investing will undoubtedly change your life, but it won’t happen overnight. In fact, it will probably take a substantial amount of time before you see tangible results. So how do you stay motivated as you work your way up from a “dividend drip” to a “dividend stream?” You simply work on increasing your dividends,…
Increase Your Savings Rate: It Determines When You Can Retire
How fast do you want to retire? Do you genuinely want to work until the full retirement age of 66? I know I don’t want to work for another 25 years. But what is the best way to retire early? We all hear terms like Financial Independence Retire Early (or F.I.R.E.), but what does that…
Middle-Class Investing 109: Create a Paycheck with Income Investing
We have finally made it to my favorite type of passive income—income investing. Although we took the long way, it is necessary to understand how we got here. Income investing is not for the faint of heart. That’s why starting with interest from high-yield savings accounts is good, and slowly work your way forward. Welcome…
Middle-Class Investing 108: Why Dividend Growth Investing?
Today, we will dive deeper into the world of wealth-building. Sadly, most middle-class folks will never buy individual stocks. The purpose of dividend growth investing is to build a nest egg that also pays you. In addition to a steady paycheck, your dividend payments grow over time to combat inflation. Does this method sound too…
Compound Interest: You Can Pay It or You Can Earn It
If you ever seek motivation in life, look no further than the power of compounding—everything we do in life compounds, either positively or negatively. “The Compound Effect” by Darren Hardy explores how we can exploit compounding to improve anything we want in our lives. The more things we put into motion, the more chances we…
Two People, One Budget: Create a Budget and Start Income Investing
They say finances cause most marriages to fail, but what specifically is the disconnect between couples? More importantly, how can we prevent these issues from causing a division between the lovebirds? My wife, Kristina, and I have been married for 17 years, and we are on the same page financially. When we didn’t have “the…
30-Year Bonds vs. Blue-Chip Dividend Stocks
Today is a great moment in time to be an investor. It’s been over 13 years since stocks and bonds had to compete for your investment dollars. If you are searching for a 4% yield, you can now choose between a 30-Year Bond or a blue-chip dividend-paying stock. However, the answer doesn’t lay in numbers;…
Middle-Class Investing 101: Investing is Essential for Freedom
There is nothing wrong with being firmly in the middle class. I am happy sitting in the middle because I can fly under the radar. As middle-class people, we get ourselves into trouble by trying to act like we are rich. Keeping up with the Joneses is a losing proposition on all fronts. However, we…
Bonds for Mom: A Low-Risk Retirement Plan for Mom
As our mothers increase in age, chances are they will receive some kind of windfall. This can be from an inheritance, a life insurance policy, downsizing a home, or cashing in a 401K. As the son or daughter, you will want to ensure this money lasts until the end. Most people will turn over the…
What is Your Net Worth? How Long Can You Survive Without a Job?
Net worth has become a status symbol; apparently, if you are a net-worth millionaire, that is supposed to mean something. However, having a high net worth doesn’t necessarily mean you are wealthy. There is a massive difference between static and functional wealth. Today, let’s determine your net worth (and mine’s) and see how this money…
Feel Special with Special Dividends
Every day as an income investor, makes my life more enjoyable. It’s incredible to receive money from thin air. I didn’t grow up with a lot of money and worked hard to provide for my family. I have worked for the US Government (as a Marine) for over 23 years. I fully appreciate the hard…
Preferred Shares vs. Common Stocks
There are tons of securities you can buy on a given day. So knowing what you are buying and why you are buying it is vital to long-term success. Most investors will purchase common stocks inside their various portfolios. However, many other options exist, including treasury bonds, Series “I” Bonds, closed-end funds, and mortgage REITs.…
Are You a Dividend Growth Investor or an Income Investor?
How do you like to see your money? This is at the heart of the question, “Are you a Dividend Growth Investor or an Income Investor?” If you like to see your investments always (most of the time) in the green, then you’ll probably lean towards Dividend Growth Investing (DGI). If you want to see…
Income to the Moon: Income Investing Your Way To Retirement
Saving for retirement is boring. Somehow, at age 25, you are supposed to prioritize your retirement planning over buying a flashy car. This rarely works in reality because it’s a tough pill to swallow. However, there is a different way, but it will take a complete shift in mindset. What if I told you that…
The Biggest Book on Passive Income Ever 3!
What is the point of working hard to build passive income? Couldn’t we achieve the same results by getting a high-paying job? Yes and no. Money is money, no matter how it arrives in your account—this is true. But the magic of passive income is you can do whatever you want as it grows inside…
LBYM: Live Below Your Means and Increase Your Savings Rate
“Living below your means” gets a bad reputation. People hear these words and assume you need to eat grits, make honey sandwiches, and recycle toilet paper. But that’s not the case at all. Living below your means simply means creating cash flow through your household. It also means that you do not subscribe to the…