From 9-5 to Freedom – Using your money wisely
- The #1 myth that keeps you from investing and how many burgers (uhum money) it costs you (this number goes up every year…)
- The investment strategy that has statistically proven to be the most successful … and anyone can do!
- How to maximize your return. The best thing that it has to do with making a calculated investment decision, so you profit and reduce risk – a win-win scenario!
Comment your biggest takeaway below!
Video 1
Video 2
Video 3
I heard of dividends before but never really understood how they work. Thanks for making this clear!
Hey Jan, thanks for your feedback. I am happy to read that it’s clearer now 🙂
OMG! That story about the money burning in the other room totally brought it all into perspective! I need to start doing something!
I have the same thing! I am going to open an investment account asap!
Hey Megan and Kristy, I am glad that inflation is making more sense to you now 🙂
Looking forward to get me those free burgers. I see investment more clearly now. I still wonder though what happens when you actually want to use the money out of the stocks.
Hey Meike, I am happy to read that investment is clearer for you now.
And a very good question indeed! The thing is that you don’t want to invest all your money into stocks.
You need to keep some of it in a safer place (savings account). We personally keep to 5-6 months of costs to cover. Yes, that money will burn a little, but this is the cost of keeping it safe and liquid for a rainy day. Everything beyond that we invest as we know that we won’t necessarily need it in the short-term.
If we know we need to save for something happening within a year or less (holiday, wedding, etc), we might not invest that money.
Remember, short-term the stock market can be volatile, but long-term it always goes up. So you don’t want to have to sell your stocks short-term to cover costs.
I hope this makes sense 🙂
I had no idea that you could get 4% dividend yield. I thought it was usually very low, like less than 1%. I am going to look for these kind of opportunities. Thanks guys!
Yes there are quite a few that have a higher dividend yield. Be sure to always check for the dividend history and the health of the company before investing. There are companies that pay out a one-off large dividend and you cannot count on it for the future. Also, most companies (depending on the sector) should not be paying a huge portion of their retained earnings. They need to invest enough back in the company to grow and sustain their business.
I hope this helps! 🙂
This just made inflation so clear to me! I knew it means that prices are rising, but I never really thought about what the impact is on my money. Really clear guys! Thank you again!
That’s great Jenna! See you at the masterclass today!
Super good video guys!!!! Thank you!!! I am very interested to start investing. What is the first thing I need to do?
Hi Dimitris, the first thing to do is to open an investment account at an investment brokerage firm. Choosing your investment brokerage firm depends on a number of factors. The main one is the costs of having the account and of transactions.
See you at the masterclass today!
This is so straight forward! I want to figure out how I can start investing now! Thank you!
Hi Lermit, that’s great! Join us for the masterclass today to learn more.
Hi guys ! Thanks for the video, just a question over here.
How does the payment of dividends work? Does the company pays 4% of your initial investment for example 1,000 dollars? Or do they pay accordingly to the price of the stock at the moment?
Hi Paola, The dividend payment is a fixed amount in dollars (or any other currency).
The company pays that fixed amount (every quarter or other interval).
The 4% example is on your initial investment indeed.
The 4% is the dividend yield, which is an indicator of the return on your investment if you choose to purchase the stock at that specific moment.
The dividend yield is calculated as the current annual dividend payment divided by the current stock price, multiplied by 100 to make it a percentage.
The dividend yield will change as the price of the stock increases or decreases.
The cheaper the stock is trading for, the higher the dividend yield will be (while keeping the dividend payout amount fixed).
Here’s an example:
Let’s say a company pays $5 annual dividend per stock.
If the stock is trading for $100 today, then your dividend yield will be:
5 / 100 = 0.05 x 100 = 5%
And if the stock price changes to $80 tomorrow, then the dividend yield will be:
5 / 80 = 0.0625 x 100 = 6.25%
I hope this clarifies this 🙂
See you at the masterclass today!
But there are always taxes to pay on the income as well
Hi Lynda,
That’s right, you do have to pay taxes on both active income as well as passive income.
Therefore your return on your investment might be lower depending on the tax rate in the country that you live in. Income taxes work differently in every country, and therefore we didn’t go into this in detail in this video specifically.