How Do You Earn Regular Income From Stock Investing Via Dividends?
• Spend way less than you earn. Pay yourself first. You’ll need the investments to return substantially more each year than you would spend. • Keep a year’s worth of living expenses in cash, savings account, and CDs. This isn’t just an emergency fund, but it helps you get through the ups and downs of your other investments. If they don’t return as well as you’d like for a quarter or two, things aren’t disastrous – you still have a lot of breathing room. • Roll the excess back into your investments. Whenever you start to build up way more than a year’s worth of savings, roll it into more investments. Keep pretty careful track of your spending and so you have a strong estimate of the year to come. If the amount in cash and CDs gets over fifteen months’ worth of living expenses or so, cut it down to twelve months’ worth and put that difference into your investments. And what are they? • Put all of the rest of your money in stocks which pay a good dividend. Buy stocks in companies you beli
