It’s coming up to a year since I enrolled in an online course to become an Accountant. I’ve been spending the last 2 hours before bed of (most) days working really hard, studying, trying to get better every single day. I’ve passed three of my exams and I’m waiting for the result of the fourth to see if I’ve passed my level 2. When I find out how I get on, I’ll let you know!
My Accountancy studies have sparked an interest, even more so in the current climate, and that is investing. I don’t know how many of you currently invest your hard earned money but for me it’s becomes addictive.
I started learning about public limited companies and the statements they produce; financial position (assets & liabilities) and profit and loss (income & expenses). This data is made available to anybody and I began to read these statement, initially because I thought it could help with my studies. I proceeded to learn about how these companies pay their profits to shareholders and that anybody can buy shares in these companies. I started the think about how this was a really good way to build passive income.
There are numerous investing strategies but dividends are what I’m most addicted to. When I received my first dividend payment, I was hooked. It was $1.87, what an anti-climax! Obviously I’m not retiring any time soon but the truth is, that first payment has given me the motivation and discipline to continually deposit money into my stocks account consistently. Over time, likely years, through consistency and with the power of compound interest (reinvesting all of my dividend income), I will have built a massive stream of passive income.
My monthly dividend income is averaging about $21 per month. That’ll cover my monthly Amazon prime and Netflix subscriptions, but the long term aim is to cover all of my monthly expenses. Short term, I’m just looking to increase to $30 a month, then $40, and so on.
Investing in this manner changes your entire mindset towards money. Everything I purchase I think to myself, I could have bought myself one share in Nike instead of buying trainers from them. I remember reading something which went along the lines of:
"The CEO of Coca-Cola earns around $200,000 a year and works 70 hours a week, whilst Warren Buffet owns around 9% of all Coca-Cola shares, he gets paid $704,000,000 a year in dividends and works 0 hours a week."
Do you invest in stocks and shares? Which companies do you own? How much do you have invested? What is your strategy? Let me know in the comments! If you have any questions about my investing let me know in the comments too!
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