To Make My Life Better I want to Invest in a Cash-flowing Financial Asset and I Want Everyone To Too
By w̶i̶e̶l̶d̶l̶i̶n̶u̶x̶.̶c̶o̶m̶ author Morgan Jassen
Link to author Morgan Jassen
I want to invest in a cash-flowing financial asset.
I hope everyone reading this wants to, too. Why? I truly believe that if everyone becomes an investor and owns a cash flowing asset, then everyone will become richer, and that will be better for us. A wise person said "money is the root of evil", but another wise person said, "lack of money is the root of evil." So what it comes down to is, what's the character of the person holding(or spending) the money?
As for me, I'm afraid I'm a bit ignorant and a noob when it comes to financial investing -- how can I get started?
Well, I can learn more as I go.
But I do have one experience that I can share.
Years ago, I sold some shares of the common stock of a company that I had. It helped me pay for college. I sold it through the agent, which had been Computershare.com.
(Yes, I realize now that makes me a "trust fund baby". (with negative connotations of being spoiled) At this point I can't help this, so I'll have to live with the reputation and learn from it to make me stronger.)
But my point is that while I had the stock, it had been flowing some dollars per quarter as dividend income, in the form of a check in the mail four times per year. Looking back, that was a good situation to be in. That got me comfortable with that. I'd like to again get in a situation where I can have some quarterly income in the form of dividend income.
So I'll start with what I know -- start there.
But now I don't have any more stock shares. So how can I once again get to that place, to get some cash flow?
Here's a tentative plan.
1.
Strategize. I want to buy stock in what I will call a "buy & hold" strategy. In other words buy it and don't plan to sell it, at least not for some years. (In other words, long term investing.) And I want it to flow quarterly dividend income to me.
2.
Save. I will save up a few dollars per day until I get to the minimum amount to make my first purchase.
3.
Shop. On the Computershare.com website there are hundreds of companies listing stock for sale, some of which have a minimum amount for a purchase like $20, $50, or $500. A list of "all" is here: https://www-us.computershare.com/...?stype=all
4.
Research. At a rate of a dollar per day, it will take me a while to save up the money. In the mean time, I plan to do more research -- what is the difference between a "Direct Stock Purchase Plan" ("DSPP") vs. a "Dividend Reinvestment Plan" ("DRIP")? Which company pays quarterly dividends vs. which doesn't? I read somewhere that for an investor -- from an investor's viewpoint -- "Passive income" is best -- better than earned income or other income. Stock dividends would be a form of passive income -- wouldn't they? Which companies are doing well, vs. which aren't doing well? ( see my post "In Stock Investing What is a Reverse Split?" http://w̶i̶e̶l̶d̶l̶i̶n̶u̶x̶.̶c̶o̶m̶/2016.php?2016-12-16#2016-12-16 )
Winding down. I whole-heartedly think that if everyone in this world invests in cash-flowing financiall assets, then we will all be richer, and that we will all be better off.
Anyway, in conclusion, I will strategize, save, shop, and research. I'll educate myself and learn as much as I can, and my goal is by the end of the year to have bought a share of the best stock that I can find. This is my current plan in my overall goal to flow cash to myself, and furthermore I want everyone else to also have their own plan to flow cash to themselves, too.
Related: (see my post: "(Not) Choosing a Stock Investment (in Starbucks Stock) Based on Emotion" http://w̶i̶e̶l̶d̶l̶i̶n̶u̶x̶.̶c̶o̶m̶/2016.php?2016-12-15#2016-12-15 )
Disclaimer: I may be investing using the ways/resources mentioned above. The reader of this blog post should, before investing, perform their own independent research as appropriate. The contents of this blog post are general information from one individual's perspective; I'm not recommending how anyone else should invest.
[2019 edit: Moved to: https://i̶n̶v̶e̶s̶t̶o̶r̶w̶o̶r̶k̶e̶r̶.̶c̶o̶m̶/2016/... .html.]
[2022 edit: Edits.]