Sunday, October 1, 2017

Lots of money is a good thing. This post is about how to get there.

Wealthy is a good thing and anyone can get there, especially if you're still young.

Just do this stuff:

Live frugally.

Choose a career that you will love that's also very lucrative.

If you can't make tons of money from your career that's not necessarily a problem. It's not how much you earn that's important. What matters is how much you can save. Living frugally is a good way to get there.

What you don't spend should be invested in the stock market. People should be buying shares every month if possible.

There are two ways to invest in the stock market, the wrong way and the right way.

The wrong way: Buy shares hoping for capital gains.

The correct way to invest: Choose corporations that have a very long history of increasing their dividend every year, at least 25 years of annual dividend increases. Make sure the company you invest in will still be in business a hundred years from now. With much research and common sense you can figure it out.

Buy shares every month. To pay for those shares use the money you save plus the dividend income. Reinvest those dividends.

Hold for life. Never sell those shares. Eventually your dividend income will be enough for you to retire. If you do everything right you could retire before age 50 or younger. If you love your job you can continue working but it's nice to know you can quit at any time.

It's good to be diversified. In other words own shares of several corporations. But make certain what you invest in will still be in business far into the future.

My favorite investment is AT&T. The only way they could go out of business is if people stopped using the internet and that's never going to happen.

Of course don't trust me or anyone else. Do your own research.

Some people hire an advisor. I think that's a waste of money. With the internet it's easy to do your own research.

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