My Emergency Fund Made $20.71 in Dividends
Many financial experts including the likes of Dave Ramsey and Suzy Orman recommend putting your Emergency Fund in a FDIC insured checking or savings account. I tried doing that and it didn’t work for me, so I tried a different approach. I invested in an individual stock, some of you may have heard of them, the company is called Nike. I was able to diligently put aside a small amount of money and have this drafted from my bank account each month to buy Nike stock through Computershare. Each month I was buying fractions of shares and reinvesting the dividends back in the form of buying more Nike stock.
While I am heavily invested in real estate as my primary income stream for financial independence, I believe in having multiple income streams in a successful business or financial portfolio. I mean think about it, it’s not like Nike only makes money off of shoes or Google off of advertising, they are well diversified in their income streams, I think we should all take note. My financial independence philosophy of putting your eggs heavily into one basket with real estate and then diverting to a multiple income stream approach is slowly coming to fruition. I would like to see Dividends become a bigger income stream over time and what a better place to watch my emergency fund increase in value then with dividends. As the featured image indicates:
I am proud to announce that during 2014 in my individual investment account, Nike paid me $20.71 for 2014!
Now certainly their are many dividend investors out there who have made 1000x more in 2014, but we all have to start somewhere. Based on history this number will keep growing and growing over time, I actually stopped building my emergency fund earlier this year so I could put my focus in it’s entirety on paying off my student loans, which has an anticipated pay off debt of 2014(If I move mountains, defeat Godzilla, etc). Assuming Nike keeps paying dividends(30 year track record says yes), and increases them over the course of the year, that $20 could get closer to $25, now I know that doesn’t sound like a lot but look into your emergency fund, what income did you receive?
Since my student loans will be paid off shortly, this account may increase over time, buying more shares of Nike, this would increase the number of shares and increase my overall dividend amount received. I also may need to sell out of Nike completely to make sure my debt is
eliminated destroyed. Either way I am happy to report my $20.71 dividend income for the year and in celebration I would like to share with you just a few things you can buy for $20!
That was a trick celebration people we don’t waste our money on things under $20, instead pay off debt, invest, start/build a business. Even Steven Money readers unite………OK took that one a bit far, I watched a lot of Captain Planet as a kid, but with our powers combined……………Until next time thanks for reading.