I have started my shares off to a flying start. With my own knowledge and the help of the Motley Fool share advisor, I now have shares in 8 different companies.
Something we didn't touch on in my Rich dad poor dad article is dividends. Not all companies pay share holders although the bigger ones do. Reading a blog by Richard Torres who started putting his dividends back into his investments to buy more shares. The plan is you keep putting your dividends back in until the amount of dividends is equivalent to or more than your monthly expenditure. This is none as passive income, 'passive' because you need do no more work to earn it. Your money is working for you rather than you giving your time in exchange for money. (Companies like Coca Cola McDonald's,Britvic and so on pay dividends per share. Coca Cola has paid 8% on each share) How many banks pay 8% right now?
A word of warning share prices can and do go down and you may lose your investment. However over the long term (3 years) they have been seen to increase in value. This is a long term investment. The motley fool describes the volatility of share prices as white noise as you are looking at the long term opportunity.
Take Care
Everyone
Something we didn't touch on in my Rich dad poor dad article is dividends. Not all companies pay share holders although the bigger ones do. Reading a blog by Richard Torres who started putting his dividends back into his investments to buy more shares. The plan is you keep putting your dividends back in until the amount of dividends is equivalent to or more than your monthly expenditure. This is none as passive income, 'passive' because you need do no more work to earn it. Your money is working for you rather than you giving your time in exchange for money. (Companies like Coca Cola McDonald's,Britvic and so on pay dividends per share. Coca Cola has paid 8% on each share) How many banks pay 8% right now?
A word of warning share prices can and do go down and you may lose your investment. However over the long term (3 years) they have been seen to increase in value. This is a long term investment. The motley fool describes the volatility of share prices as white noise as you are looking at the long term opportunity.
Take Care
Everyone
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