TLDR: I’ll help you set up a compounding money generating system so you can focus on more interesting things in life.
Step 1: Open a Trading account. If you’re Canadian: Open a TFSA Trading Account (Tax-Free Trading account). Robinhood, TD Webbroker, or Wealthsimple Trade.
Step 2: Move in money into said account. (Canadians: Be wary of your TSFA contribution limits.)
Step 3: Buy stocks that pay dividends. Example: If they pay 5.5% monthly, that's 5.5%/12(months) = 0.004583% on any money you deposit paid to you every month. Look for “Div. Yield” under stock details:
Step 4: Call your bank and ask to turn on “DRIP” (Dividend Reinvestment Plan.) This way, instead of receiving cash every month, the earnings you get will try to be reinvested into that stock to buy more shares. (ie. Compounding your wealth for next month.)
For example: If you put in $1000 into a $1 stock that pays 5.5% dividends monthly. That’s $1000*5.5%/12(months) = $4.58 back a month. DRIP will try to buy as much as it can with your returns. In this case, it's $4 meaning that’s 4x more shares. The remaining $0.58 will just get deposited into your cash account.
Step 5: Sit back and watch your wealth grow. 🤑
Did you know? You can also earn 5–8% APY interest on your 🟠Bitcoin. Check out my Bitcoin Resources page for more info.
