Wednesday, May 08, 2013
I became aware of Mr. Money Mustache a few weeks ago and have read a few posts - though it's the commenters that really interest me! Part of his philosophy is that you should have your "little green employees" working for you all the time, as hard as possible. After reading some of his stuff, I started thinking again about a plan I'd had a while back - to buy some DRIP stocks. If you aren't into stock trading, a DRIP is a dividend reinvestment plan. When you get dividends from a dividend-bearing stock, a stock that has a DRIP allows you to use the dividends to just buy more stock. I find this quite a keen idea, because when I was a teen a family friend gave me a single share of AT&T stock. Over the years with the DRIP in place (and some timely stock splits) it became about eight shares of Verizon, which I then sold to buy the furniture in my first apartment. Not too shabby! So I've been looking around to see what kinds of DRIP stocks I can buy through online trading, since I am far too lazy to actually mail anything to anyone, and started looking into what I might like to buy. I'm working out the details of selling my business, and while most of that money was intended to pay for the wedding, I do want to set some aside to invest. I feel like I spend so much time worrying about paying down debt that I forget about taking advantage of time while I am young to make money grow for me. Debt will always be there for me to pay off, but if I don't do some investing, there won't be anything there when I do pay off that debt. I think I'm going to set aside about $500 to buy some DRIPs and maybe also put some money in my Roth IRA, which I also feel guilty about not contributing to this year! I do put money in my 401k but the whole idea of that is that I don't have to do anything. (Note the lazy.) Fiance's work has a Roth 401k of which I am very jealous. Maybe someday I will have a Roth 401k of my very own. But for the moment, I should really get on this investing bus before it passes me by.
Posted by Kira at 7:55 AM