What is the Best Cash Flow Investment

What is the best cash flow investment
What is Cash Flow?

Have you ever desired to have more cash flow? Well I am on a mission to find out what is the best option for anyone interested in learning about cash flow and learning how to build it. Anyone looking to be financially free and cash flow free must begin finding ways to get multiple streams of income. The cash flow from dividends is a vital piece of the puzzle I believe. I think for the sake of making things easy and for comparison options let’s keep the numbers for all the investing options at 1 grand. The examples below are possible dividend figures for folks looking to increase cash flow.

What is the Best Cash Flow Investment:

1 Thousand Invested Options – 

The Low price company stock option:

GE – 1000 / $26.53 per Share = 37.69 shares X .22 QTR dividend = $8.29 QTRLY (3.32% Yield)

The Mid-Priced Company Stock option:

TGT -1000 / 58.79 per share = 17 shares x .52 QTR dividend = $8.84 QTRLY (3.54% Yield)

The High price company stock with greater future returns option:

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My Dividend Strategy

 

my dividend strategy
Pump up the Portfolio with Dividends as Quickly as Possible.

Do you want to know my dividend strategy? I am hoping the moves I make will pay off within my retirement accounts aka Mutual Funds. I am not suggesting anyone try implementing this strategy for their finances. It has worked well for me on most occasions and I have an ultimate goal in mind, to achieve a high portion of retirement income off my mutual fund dividends. Imagine owning 20 thousand shares of dividend paying mutual funds and stocks growing every quarter. I am on track to finally break the 4 grand total shares owned mark.

I keep a record of fund prices on all funds as to help me decide when is a good time to sell one fund and buy another. The same goes for the dividend amounts each fund pays and how often they pay. The best scenario is when the fund that pays the smallest dividend is at its 52 week high, and the fund that pays me a high dividend is priced lower than usual. I would immediately exchange a set amount of dollars from one fund to another, with no fees or charges. The reason is because they are all in retirement accounts and doing exchanges are free. (401K and IRA) See below for my dividend strategy:

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The 10 Secrets to Build Wealth

The 10 secrets to build wealth
Cool Antique cash register used to build wealth in the past.

The Roadmap to Building Wealth

Have you ever asked what is the secret to attaining wealth? Well even though I have not reached the status of ultimate riches like Warren Buffett, I now understand how someone can achieve wealth. The 10 secrets to build wealth are golden facts we all should know. Because of these 10 steps I am on the right path and building my wealth every year. I will discuss with you today a few phrases, which embody the secret to wealth building and how that relates from my experiences with personal finance.

They say knowledge is a tool we all can use to reach any status in life and to me financial knowledge can lead to real wealth. Not the fake wealth people are parading in this life, with debt up to their eyeballs, giving off financial fallacies with every thing they own bought on payments. These secrets are simple things we all can do in life, and if you do them consistently I believe you will improve financially. If you follow them to the tee, this can lead to great riches.

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The Investing Rules

The investing rules
The best investing rules

Investing in today’s marketplace is extremely daunting, the plethora of choices can make for paralysis by analysis. The most experienced investor can become contrite with all the choices. Just imagine somebody without any experience in investing and how hard it may be. Because of this issue facing many not familiar with investing, I developed the investing Rules. The rules will be there for many to follow as a guideline. This is an informative post on how to begin on what might be a financially smart path for you.

The first investing rule never invest more than the employer match in 401K when in debt. If you have a budget that allows you the ability to allocate $100 dollars a month to invest in after tax brokerage accounts and another $300 towards student loan debt. Yes you will be growing your net worth month by month and reducing debt month by month. The normal way of thinking behind this scenario is that you are paying down debt to the tune of 3 times what you are investing, and you might not see a problem with this process. The behaviors you are displaying are good, but they are also not the financially smart method. Why, you may be asking?

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What’s your coffee really costing you?

 

What's your coffee really costing you?
Where do you get your coffee fix from?

The daily coffee addiction might seem like a small price to pay for being alert at work. That rush you feel is not a trick, it actually wakes people up. Before you drive up to your local Starbucks or Dunkin Donuts, think about what’s your coffee really costing you over your lifetime. I believe we all should drink coffee from wherever we prefer, even if it will cost you $4 dollars a cup. Obviously your money is for you to spend, but I want to give you some details as to the real cost behind this daily morning ritual.

The average person has two cups of coffee per day and if you multiply that by the entire 243 million 18 and over adult population, then you get a staggering 486 million cups of coffee per day. If everybody in the US went to Starbucks for their daily fix, it would be the most profitable company in the US.  Now let’s discuss the facts. I will show you if you brew your cup of coffee at home and invest the difference in expenses how much you can save. In addition to the savings how much your savings will grow over a 30 year time frame invested in a US stock mutual fund?

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Can you Spare Fifty Dollars a Month?

Can you Spare fifty dollars a month?
Save those dollars!

Hey friends can you find $50 dollars from your budget to help you in a big way? Well if the answer is yes then you should continue reading as I will give a few ideas on how to invest that money every three months for your benefit. Before we proceed I have to set some guidelines for all the readers of this blog. What are the guidelines you may be thinking right now? This advice is for people who 1. Do not have any non-mortgage debt, 2. Already have an emergency fund totaling at least 4 months of living expenses, 3. You will maintain a long term investing strategy with the investing dollars. If you qualify after reading these 3 guidelines then you can proceed reading, if not this post is not for you. Completing the two goals above and thinking with a long term mentality will benefit you more than investing right now.

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Financial Fitness

 

Financial Fitness
Reach Financial Fitness

How can you develop financial fitness? Well it is simple by working every dollar that crosses your hands and taking the time to see how the money plan you have now will give you what you want later. Real financial fitness can take place, but the trick is you have to want to work those dollars. Many people love working out physically, and on the flip side give up financially. Most of the readers of this blog are in the 25-35 age range, and that means you guys are abundantly blessed with physical energy. Now if you could just direct some of that energy to daily financial fitness workouts, life can be a nice walk in the park.

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Why you should consider Dividend Investing

Why you should consider dividend investing
Dividends grow quarter by quarter

 The average savings account pays only .50 percent interest with traditional banks and 1% with online banks. When you compare these paltry rates to that of dividend stocks the average is closer to 2.5  – 3%, wouldn’t you want to make your money work harder for you? The only reason money should be placed in a savings account at a traditional bank is if the money will be used within 1 year to buy something you are saving for, otherwise dividend stocks are very liquid and provide you a premium above any other alternative.

Take for example a stock like AT&T (T) depending at what price you purchase this bad boy, your yield will vary from 3-6% and is protected as long as AT&T is in business. If a number like this does not intrigue you or make you second guess why you have your money earning so little yield, then something is wrong. My example in  this post is AT&T, which has been in business for over 25 years, but believe me they are not the only dividend stock out there giving away 3% plus in interest.

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