Why Establish A Dividend Money Stream For Entertainment?
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,