Yield on Cost
I have recently been trying to learn a little bit more about investing, as it seems to be something in life that truly does matter. With the economy changes that have been happening since the pandemic, I feel like a lot of the more useless parts of the world economy are going to start dying off, like nail salons and pizza restaurants. I think that people are headed toward a future where they will have to be willing to do more for themselves like cooking and cleaning. That being said, I still think there will always be a need for an economy, there will hopefully always be groceries available and homes to live in.
The investing strategy I am currently Interested in is called dividend investing. That is where you own stock in a company andbit pays you a small share of its profits, usually this is just a few cents per share of stock. Not all companies pay out dividends, but some do. Theoretically, if you own a large variety of a lot of stocks you could be living off the dividends, assuming you are living cheaply.
Yield on cost is the ratio of how much it will pay you, the yield, for the cost of the stock. I found an amazing yield on cost calculator here. You just type in the ticker symbol and it tells you the yield on cost ratio per thr most recent dividend payout information.
Before purchasing any stocks it is wise to learn about the company first, but this can be one great way to figure out how to work this investment strategy. Another way is to figure out what the funds at the large investment houses are buying sticks in and holding those individual stocks. Remember that you should have a broad and diverse investment strategy and not be heavily invested in just one sector like healthcare or oil.
Frugal is the new green
It might come as quite a shock to you to learn that I am kind of a cheapskate. Having grown up in a working poor family, and made it myself to the working poor class, I finally had eventually come to the realization that money isn't all that matters. Actually beyond a certain minimum threshold, money doesn't matter much at all.
What is that minimum threshold? Having a safe and clean shelter to be protected from the elements, nutritious food, healthcare, and access to entertainment like books and culture. Beyond that I feel like it doesn't probably matter too much. That's why last year I decided to wear only clothing that cost less than $5 per piece if new or to buy used from stores like goodwill. Didn't do too badly at the challenge either, but I did end up having to buy two new scrub tops thanks to a change in jobs, unfortunately $25 each.
So I spent the year wearing mostly recycled clothing, which was fine.
I also spent the year handwriting my clothes and line drying them, to save money. The washing part doest save all that much money over using the clothes washer but the line drying definitely saves a lot of money.
So I spent the year hanging clothes outside, which was fine.
I harvested a lot of water hyacinth and ginger leaves from the garden to cook up and eat, and I grew a large portion of the duck and rabbit diets in the yard.
So I spent a lot of time eating organic growies in the garden, which was fine.
I enjoyed listening to quite a few podcasts and articles for free online, and rented dozens of audio books from the library website for free. Which was fine.
I bake bread from scratch and homebrew wine. This year I have mastered the art of making homebrewed wine from frozen concentrated grape juice, which I have to admit, is kind of amazing. Also apple juice. For the bread I like to use the breadmaker for easy clean up. I have learned two things about homemade bread this year - that if you add too much yeast that will result in a problem and that the knife for slicing really matters ot you will awful slices.
Which was fine.
I don't have a gym membership. I think that gyms cost a lot of money and they usually require driving to get to them, which I usually don't want to do. Besides then you are around other people, and it can make me self conscious to be all sweaty and wild hair when I work out. So I have a kettlebell and a rowing machine and a few other pieces of exercise equipment, which has more than paid for themselves.
So I worked out a lot for nearly free. In fact, this scale app says I'm doing pretty good for my age, don't be jealous. So that's fine.
Reddit Author Discloses Screenshot of his Roth IRA Dividend Investments, $637 per year
What I like about this post is that it reaffirms that I am not the only one going down this rabbit hole. Also it shows that it is possible to get some great returns with strategic planning. Sadly, he got a lot of nagging regarding the fact that it will take him his whole life of Roth IRA contributions to get to his goal of $6k of income a month, which is a high goal. People were overly critical and negative too, sadly. Probably jealous.
*writes down all his top positions*
*writes down all the commenter top suggestions including SCHD, PSTL, CSCo, VYM, VIG, NOBL, DGRO, MO, O, GAIN, JEPI, QYLD, ENB, BCE
My goal is about $10k of income per year. That's what I need to retire. That might be too hard to do with dividend investing, but I can try.
What's your savings goal?
The original post is here
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