Why It is Important to Invest

Senior couple on the airport with waiting limousine

Senior couple on the airport with waiting limousine

Do you want to live like this fine woman here? Do you want to have an excellent limo waiting for you like this woman is doing near Paso Robles?

“It is important to invest the money you earn, regardless of where your money comes from”. It is so important that I will say again: “it is important to invest the money you earn, regardless of where your money comes from”. There was a video that shows of a man that has been working from a parking lot and 44 years later, he owned $500,000 in stocks and received dividends for them. He was making $12/hr for 44 years, and kept reinvesting his earnings, so he could obtain his earnings in greater amounts. Every dividend he would obtain, he would reinvest them again.

As time went on, he kept reinvesting over and over again, and eventually got to a point where he paid off all his debt from his house and car, and was able to feel financially secure with all his debt and can finally, after all this time, not worry about finances as much. This is a great story to the buy-and-hold investor who decides that the best thing to do is to buy stocks with dividends and continue to hold them without any sort of selling the dividends. You can do it on a larger scale of course, if you were a plumber making $40,000 a year. After all, $12/hr equates to $480/wk, which equates to under $2,000/mo, which equates to under $24,000/yr. The video is on YouTube.

I do not agree with this mentality or advice at all.

This is because his method is a buy-and-hold method. This works very well for some people. It is just not my style of playing the game. I prefer rather to take the money I am earning and invest in a business I own or real estate that can earn me much more money and cashflow. Dividends do not seem like they pay out much at all unless you have a huge portfolio of stocks. In addition, the method that was played did not seem like stock options, which I heard were very good for the wealthy.

Even though I have yet to be rich, this is what I have to say.

There are other ways to get rich instead of involving spending half of your life saving money. In addition to that, saving money does not even guarantee much interest at all. It is much more viable to learn how to leverage your money and invest in things that will give you a positive cash flow. As long as you can get a positive cash flow, you know that you will always have money coming in. You can then reinvest that money, whether it be from real estate or business that you own, and put it to work so it gets you more cash flow. This sound a lot more reliable than the line and person a bunch of stocks that you own, just so you can pick up some dividends that may not even add up to much at all. I used to be very into dividends comment I realize how much money it takes to get a substantial amount to live off of. Sure you can take his money or your money or her’s or anybody’s paycheck and just keep buying stocks with dividends. Then you can take those dividends and reinvest and get more dividends. The only thing is that they didn’t intend to be very small and you will have to require a large amount of them for them to even be worthwhile. I have yet to research how many dividends would be needed in order to finally become financially free, but I believe that getting paid quarterly may not do it for many people. If once they get paid $30,000 4 times a year, that would definitely be something to look into.
Instead of investing in the stocks of a giant limousine company up at the NYSE, just invest in a limo like the one I just highlighted previously. Invest in the actual limousine company where you get profits that soar what stocks will ever give you. You will have a huge interest in the business and actually see the money work for you instead of investing it at “buy low, sell high” strategies, or investing money in a company that you have no idea is going on. I invest in those, and I believe that it pays off more in the long run than dealing with one of those lame ideas of “INVESTING IN A BIG COMPANY”!