You might be able to retire earlier than you think Here s how kyma.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kyma.com Daily Mail and Mail on Sunday newspapers.
Jul 2, 2021 at 11:15AM
Have you heard of the magic of compound interest? It s been called the eighth wonder of the world, and it can be an extremely powerful wealth-creation tool. Compounding allows a sum of money to grow faster than simple interest since you are earning returns on top of returns. By investing in dividend stocks and reinvesting your dividends, also known as a dividend reinvestment plan (DRIP), you can harness the power of compounding.
Although I generally focus on growth stocks, my heart has a soft spot for dividend growth investing, and a portion of my portfolio is dedicated to dividend stocks. In fact, FIRED in FIRED Up Wealth is an acronym meaning Financial Independence Retire Early w/Dividends. Traditional dividend growth investing, also known as DGI, is geared toward the growth of the dividend annually to outpace inflation. DGI is often used by income investors, especially in retirement or early retirement.
Top 5 Dividend Growth Stocks to Buy in July fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.
Credit: Courtesy Lakisha Simmons I was reading every day, all weekend, in nights after work, all through my lunch break, she says of learning about FIRE tips. It felt good to know that I was taking control of my finances and was doing something that was going to help me, in the long run, be financially secure, which is something I didn t really ever have.
The FIRE philosophy inspired Simmons to cancel her cable bill, opting for streaming services Netflix and Amazon Prime instead. That saved her $100 a month. She also began shopping at discount grocery stores like Aldi and switched from a name-brand wireless carrier to one that offered a cheaper price (in her case, Mint Mobile). Unexpectedly, Simmons also learned to cut her sons hair to save on barber costs.
The Highlight’s best reads of the year
These stories have a remarkable richness not in spite of the pandemic, but because of it.
An illustration from “The Haunting of Girlstown.”
Illustration by Will Staehle for Epic and Vox
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The Highlight was young, not even a year old, when the coronavirus pandemic descended in the spring. If we had been padding along unsteadily, looking for footing like any ambitious toddler, our balance was entirely shaken by the seismic developments of 2020: the lockdowns and masks, the bizarrely mysterious and gravely dangerous virus, a summer of protests and the retaliatory federal response we felt in the rattling of our windows, a democracy and an election so fragile that some sounded alarms of an impending coup.