Monday, January 30, 2017

The Best Part of Dividend Growth Investing is the Desire to Contribure More.

I have an addictive personality. As a child it was video games, a teenager it was athletics, in college it was my school newspaper. Most recently it has been my career. I have devoted many hours to each of these interests and got a tremendous amount out of it. I'm ultra-competitive even when I coached middle school students.

The latest focus of my energy has been investing in dividends. Though I only have a limited amount to invest, it is a perfect match for my personality. And I know it will payoff in the long run. The reasons are not what you may think. The majority of my investments still go to my Betterment Account. And to be honest in terms of strict return I may be better off putting all my money there. The fees are low and the truth of the matter is that most investors don't beat the market.

What dumping my money in Betterment doesn't give me is control. It doesn't allow me to apply a specific investment strategy. So therefore my investments are very steady with a modest increase each year.

My Robinhood account is completely different. The X-Factor for Dividend Growth Investing is that I find money that I didn't know I had. In order to find the money to invest I pass up on other pleasures like buying clothing, eating out, or making other unnecessary purchases. The results are more investments. The more I put in, the more I will be able to take out in the long run.

Of course I could apply the same method of frugality and invest the money into funds. But for me at least I don't see myself having the motivation to do it.

7 comments:

  1. I get the same way! Recently I received a nice year end 'bonus' from my work and I had all weekend to figure out how much of it I wanted to invest and what I was going to buy. Good problem to have.

    ReplyDelete
    Replies
    1. Captain. I love weekends like that. With little ones it can be hard to find the time. It's whenever I can steal an hour.

      Delete
  2. So true. I feel the exact same way. Every extra dollar I have I keep thinking to myself it would serve me better investing in one of my long term holdings. This desire to always want to contribute more can really help create a serious snowball in short time.

    ReplyDelete
    Replies
    1. Keith, that's when I'm finding out. I was originally planning on dumping $30-50 a month into Robinhood just to see what happened. It was just supposed to be a small supplement to other investments. Based on that plan my portfolio should be around $500 now. Instead it's around $2,500. This is without decreasing my other investments.

      Delete
  3. The feeling of investing more to get even more dividends is hard to resist. It is nice to have a hobby that improves your finances.

    ReplyDelete
  4. Dividend Monkey, thanks for stopping by. I will add you to my blogroll.

    ReplyDelete
  5. I firmly believe that a diversified mutual fund portfolio is the way for most people to invest most of their money. However, as you said, it isn't any fun. Instead of buying shoes I don't need I use disposable income to buy stocks I don't need.

    ReplyDelete

Follow by Email

Finance Lessons From Dad

It has been nearly two years since my father passed. There was a lot to admire about the man. I can't remember him ever raising his voic...