Why not build a “Dividend Stream for Entertainment“?
Dividend Stream Idea
The idea is to invest money into a stock that yields a dividend. Hopefully the stock(s) have some growth potential and yields a dividend rate greater than 5 %. REITs usually provide such dividends, perhaps they would be a good place to start. At first, use all of the dividend for entertainment purposes, but after enough money is invested, perhaps throttle back the usage of the dividend to half. Then with the other half, reinvest it back into the dividend stock. This way the amount would continue to grow even after you stop investing earned income into it.
Dividend Stream Start
So far, this site has $100 saved up for investing. At 5%, that would only give out $5.00 a year. Does sound like much, but it could buy a few cheap games for and Apple iPod, or perhaps materials for a cheap experiment. Still, we’ll wait until we have $500 to $1,000 saved up before we invest it. If we get $1,000 at 5%, that would yield $50 a year and while not a lot, it would enable us to do a few cool things. Once we get $10,000 saved up, then the dividend stream could provide $500 a year, and that would enable us to do some pretty cool things monthly!
At his point in time, we can just dream about the investments that we can purchase, but really we’ll have to wait until we have enough to invest before we take the plunge. Still it is fun to dream.
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!