I already mentioned in my article “Why I chose dividend strategy as the right for me“ why I’m using the dividend strategy. I see my goal to become financially independent as a project. A project of my life! On the one side I could use my current income to live my life. Doing all the great things and buying a lot of stuff, travelling and driving a big car. But if I live my life yet, my retirement will be less comfortable. Because I will be needful for income but the pension income will be less than my income yet. My life later will go down, it will become very hard to live. At the moment I will retire in 37 years. What’s the other side? I could live now a little bit frugal, saving my money, don’t buy stuff I don’t really need, to resign some unneeded things. I will retire earlier, living free of work for somebody who’s is earning more as I do. I’m kind of a slave, but it will be changed at that time I will be free. Now I’m building up my freedom.
When you read my section About Me then you will learn that I’ve firstly traded in 2003. As I started to trade I bought some “good-sounding” stocks, and sold them very fast with few percents. But I never noticed broker commissions, so I was out with a loss of few Euros. I was visiting some websites and learned more about chart analyzing to trade Forex, Options and all that kind of stuff you’ll probably lose your money. I’ve no doubt there are a few daytrader out there making a lot of money.
I invest my savings mostly into companies with dividend growth. Its also important that these companies increase their dividend yearly. What is the meaning for your investments? Especially here the compound interest will be very good for long-time investments.
To show it I will take a look to McDonalds. McDonalds is a worldwide known company who has worldwide branches and selling their products. Most of people love fast food.
As I’ve started to trade in stocks I just bought some “good-looking” stocks and sold them very fast. I hadn’t no idea why I bought them. I just looked to the development of the stock price and as it was nice looking I bought it. Without having any knowledge I sold them very fast. Middle of last year I visited a webseite about passive income by dividends and value investing and it looked very interesting to me. I heard about this strategy very often – especially as soon as I have heard something about the big genius Warren Buffet.