Dividend Money Stream for Entertainment…
Doesn’t that have a nice ring to it? Wouldn’t it be great to have your entertainment expenses paid for by a dividend stock money stream? I know I would like for that to be the case, and quite honestly, I’m working on one for myself in addition to the one my son is working on for his website.
Unfortunately, unless we dramatically increase our income, we won’t have the luxury of creating a Dividend Money Stream in 1 year, or even five years! I estimate that creating a dividend money stream that covers all of your entertainment expenses would take at least 10 years to accomplish! Ten years are a long time, but I think it would go faster than we think! Still, after only 1 year in and it seems like eternity!
Still each year you are that much closer to your dividend money stream for entertainment goal! I think that problem of not creating such a goal would mean that you stunt your financial wealth buildup. Creating such an entertainment stream has an indirect goal of making you much wealthier. Not to mention enabling you to build up a natural emergency saving fund. That the flexibility of creating such a dividend stream, it’s flexible and can be used for other uses if the need arises!
Do you think a dividend money stream for entertainment makes sense for you?
Thanks for reading!
Recently, a friend of my son asked “Why is your Dad writing about a Dividend Money Stream for Entertainment“!
Since this is a fair question, I decided to address this question “head on” in the article I’m writing, but make it general enough so that it’s not too specific just to my son’s friend. So now that the reason for this article is established, onto the question:
Why A Dividend Money Stream For Entertainment?
Well, when you are a kid, you don’t need as much money as an adult. Once you are an adult, such a dividend income stream is hard to establish because such investment starts out very small (I know this because I’m currently trying to set up one up for vacations and other things in my life now…) and money is very tight when you are an adult.
Since you don’t need as much money as a kid, you don’t have to sacrifice spending your money like we all do as adults, so why not minimize the hurt in the future by establishing a dividend money steam now in preparation for the future when money is more scarce because of taxes, insurance, shelter, food and other expenses. You see, as a kid, the biggest (and perhaps only) expense you have is entertainment expenses (games, movies, dates, etc).
Think about it…, as a kid you don’t have a house payment, your parent provide for your food, clothes, etc. The only real expense you have is spending for the enjoyment of entertainment, which is great. The problem is that once you spend the money, it’s gone and eventually when you are an adult, that pattern of spending and the money is gone in this ever repeating pattern. I call it the middle class wave, because the money you earn you wave goodbye to as you pay your expenses as an adult.
But if you start a dividend stream for entertainment while you are young, you don’t waste that money because each quarter it pays out a dividend for your entertainment expense, while at the same time keeping the original investment steady or hopefully even mildly increasing. So instead of starting back at zero, you start to build up your money, which in turn (again hopefully) provides a larger and larger dividend stream for entertainment and other expenses as the years go by.
You see, your investment in the dividend stocks are cumulative, so it has the potential of being a near continuous (also call perpetual) income stream for entertainment for your entire life!
Plus, the beauty of establishing a dividend money stream for entertainment is that the investment into the stocks for the stream doesn’t involve any real sacrifice versus when you are older…
And that is why we are creating a dividend money stream for entertainment! Think of a dividend stocks as a cherry tree. While it take a lot of time and work to grow the tree, eventually someday you’ll have cherries for life!
Thanks for reading,
This blog is totally my son’s idea, and I think it’s a great one!
It’s great because it’s a blog that acts as a diary about the fun things that he is currently doing in his life. Someday he’ll look back and remember those fun things that he did via his blog entries…
The tricky part of blogging about entertainment is that it can get costly… For a kid without an income stream (aka a job!), it’s hard to have money for this type of blog. After all, it’s hard to write about fun activities when you don’t have money to spend on such entertainment activities. Sure there are free and frugal activities, but those are far and few between, and besides, he has done most of those that are local to the area. Oh sure, he’ll still write about them, but it would be hard to someday take a girl out on a date without some money, no?
So is my son stuck in a chicken vs egg dilemma?
No! After a brief discussion, we decided to establish a dividend stream for entertainment timez! This actually works out well for us because I’ve been meaning to teach him more about investments for quite a while, and this can lead into such a win-win scenario.
While my son gets an allowance, it’s already spoken for and besides I think it would be more fun to merge our two interests. So we decided to create a dividend stream from any money that he earns online, and invest that money in either stocks or mutual funds that provide a dividend stream. The idea being that the dividend stream would then be used for his entertainment activities.
Someday (after he get’s more traffic), we’ll put Google Adsense on the site too. Hopefully that will help him gain some money for his blogging activities.
Thanks for reading!