Buying dividend paying stocks are great for passive income but what are some ways for buying dividend paying stocks. We all know that you need money to buy these stocks but what are some ways that we can buy more stocks and what are some tips on buying these stocks.
The more dividend stocks you buy, the more passive income you will get and the goal is to make money while you sleep. In this post, I am not telling you what with your money and please seek an expert on the stock market and how to save money.
Invest more than you save:
Yes in order to buy more stocks, you may need to save. Most people save more money than they invest and yes saving money is very important as well but saving money will not make you passive income. The more you invest, the more you are investing into your future.
Cut back the things that you back:
Cut out the things that do not make you no money.
Using cashback apps,
One of the cool things that you can do is use cashback apps. An app like the get up side gas app is an app where you pump and pay for gas from your debit or credit, to get cash back on getting gas which is something that we do anyway. I use acorns, the get up side gas app, I use the dosh app and I use the pei app.
Acorns is what I use for the round up feature so when I buy gas, they will round up to the nearest dollar and invest in the stock market for me. Cash back apps for free and there are easy to use. I also use an app called the bumper app where when I buy something, I get some shares of that company. I will link to all the apps that I use below this post so you can check out and please use my link because it helps out to run this blog at no cost to you.
Buy fractional shares to go the ball rolling
You have to buy the full share of a stock. You can buy a fraction of the stock. You can just put down one dollar on a stock just to get in and yes with fractional shares, you will also get a dividend payment, it just will not be the full dividend payment if you were to have a full share. With fractional shares, this can help people get into the stock market without buying the full share and to get that compound interest started as well.
Buy the companies that you but from anyway
One of the best tips on buying stocks on the stock market is to buy to brands that you use anyway and buy the companies that you shop at. If you shop at Walmart, then buy some Walmart stocks, if you shop at BP for gas, you can buy some BP stocks. Please do your own research before buying anything on the stock market but when I meet people and they want to get started in the stock market, I will tell them to invest in what you buy already.
Use money that you don’t mind losing
When buying stocks, don’t use the money for your rent or your money that was for bills, use the money that you don’t mind losing because the stock market has risk so you must weight out the risk. Please don’t put your whole paycheck in the stock market. use your share money that you don’t mind losing if it happens.
Reinvest your dividends
Most brokers has a plan called the DRIP program of the dividend reinvestment program where when you get your dividend payment, that dividend will be reinvested back into that stock. This will help grow your dividend payment overtime and if you invest in a monthly dividend paying stock, then pretty much every month your dividend payment should be a little bit more.
Remember with dividend investing you are playing the long game. This won’t make your rich but with dividend you can pay some bills and later in life you may life off of dividends.
