Dear Favorite Ones,
First, as always I hope that you are feeling healthy and happy.
Did you know that July through October tend to be the most popular months for birthdays in the United States? In fact, August is said to be the most popular month for birthdays, which apparently is tied to the festive moods leading to conception in December.
No matter when your birthday arrives, there is a chance that you may receive some money as a birthday gift.
What is something good that you can do with gift money, like birthday gift money (or graduation gift money, or other non-income money)?
How about buying some Nike sneakers? How about an Xbox, or an Apple iPhone? Do you think those are great ideas? I don’t. Instead, why not buy yourself a gift that can keep on giving to you?
What kind of gift has the possibility of continually giving to you?
Dividend paying stocks!
A stock represents ownership in a company. If you want to be like the wealthy, you want to own stocks. In fact, the wealthiest 10% of Americans own 89% of the American Stocks. When people own dividend paying stocks, they regularly receive money for owning those stocks. You can start buying dividend stocks with whatever money you plan to buy yourself a gift. You can give yourself the gift of ownership.
How should you pick that stock?
Well, let me spill the tea on the mindset that I use in this situation. When it comes to buying fun items that I consume repeatedly, I try to only buy them after I own at least one share of stock in the company that makes that item. So, as much as I love Apple products, I would not buy any more of their products if I did not own any Apple stock.
I plan to buy an Apple watch. The one that I want costs about $1500. But, I will put another $1500 into Apple stock prior to buying the watch. I know that my daughter (Poor Kid) loves her iPhone. So, I encouraged her to buy at least one share of Apple stock since she already has the phone. But, I told her that before she buys another IPhone, she should own at least the cost of the phone in Apple stocks. By owning these stocks in my portfolio, I get paid for owning them.
Those Dividends Keep Working!
Most of my portfolio consists of quarterly paying stocks, so I get paid every three months from each of those. However, since the stocks don’t all pay in the same four months, I receive dividend payments every month. What’s even better is that, since I don’t take the dividends out of my investment account, the dividends reinvest, buying me more of the stocks, which in turn, pays me even more dividend the next time that stock pays.
Which Stocks?
What do you love to buy? Think of a present you would normally have wanted? What do you buy or use again and again? Are you a sneakerhead? Do you love Nike? Buy Nike stock before you buy the Nike sneakers. Do you love Vans, Timberland, or The NorthFace? Buy VF Corporation stock first. VF Corporation owns Vans, Timberland, The NorthFace, Dickies, Jansport, and more. Check them out. Do you want the newest iPhone? Buy a share of apple stock first. Are you a Beats by Dre fan? That’s an Apple product, too. Are you into Xbox? Microsoft owns Xbox. Buy some Microsoft stock.
Mindset
I mentioned mindset earlier. Your mindset will change if you practice only buying items from companies that you own in your portfolio. You will feel a sense of pride and progress, as your portfolio grows. When you see people buying and using these products, you will want to own more dividend stocks. You will start thinking more about owning assets that pay you rather than only owning depreciating assets.
How much do you need to start buying dividend paying stocks?
You can start with as little as a dollar, if you buy through some brokerage houses. Of course, you will not own much of a stock with only a dollar. But, if you were planning on gifting yourself some Nikes, an Apple product, or an Xbox, you were planning to spend more than a dollar. So don’t cheat yourself. Your future self will be very happy that you have upgraded your gifts-to-yourself by building a dividend portfolio that pays growing dividends. So, just get started. If your goal is to build up your wealth as fast as possible, buy yourself as many dividend paying stocks as possible, as soon as possible.
Happy Birthday to you on Your Special Day When It Comes!
Thanks for reading! If you liked it, subscribetell your friends to subscribe!
Huge Hugs,
Rich Mom
If you Don’t Already Have an Investment Account
If you don’t already have an investment account, you can start one using Robinhood. Robinhood allows purchases of fractional shares. So, you could buy yourself part of a share of your birthday stock.
” Rich Mom” and “Poor Kid” both use Robinhood and we both enjoy it. You can use my link below. It doesn’t cost you any additional money.
If you do sign up for Robinhood, I’d love for you to let me know what free stock you receive! And don’t forget to subscribe to Rich Mom, Poor Kid so that you can follow along with the advice that I give my daughter.
Disclosure: This is a link which may help you get free stock. If you use my link, I earn something.
My links will NEVER add to your cost, and can only save or earn you money. I only promote services that I use and can stand behind 100%. If I wouldn’t recommend it to my daughter, I wouldn’t promote it.
P.S. Here is a suggestion:
Come back and reread this post because:
Repetition is the father of all learning and the mother of mastery.
The information that I share is worth learning and mastering.
Do you want to read more of a mom’s letters written to inspire financial independence by age 30? Check out:
Spilling the Tea on How to Start a Robinhood Account
Why Should I Invest?3 Stocks Under $10
Another app that you can try if you have the money for investing, but are not sure where to start, and would like a more hands-off approach is Acorns
Not only does the Acorns App help you simplify and automate your investing, it also allows you to boost your investments using your spare change. I love it!
Note:
I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor.
Also remember that past performance is not a guarantee of future performance.
Stay Connected:
Facebook: Rich Mom Poor Kid on Facebook