Is it Worth Starting?

I got a ques­tion:

Is it worth invest­ing even small amounts in to div­i­dend stocks?

My short answer: Yes!

Long answer… there are few things to keep in mind about human behav­ior:

1. If you post­pone start­ing, you’ll not build the habit that you need for long term suc­cess.
2. You might thing an amount is small, but maybe it’s not small for YOU. Get start­ed and be proud, because even “just” start­ing is some­thing many peo­ple fail to accom­plish.
3. You should think about % not “absolute amount.”

Let me talk about that last one for a sec­ond. Let’s say you invest $10, and it grown $1. Big deal, right? $1. One. Dollar. Not very excit­ing, right?

Wrong!

That’s a 10% gain. Huge.

And, if you’re invest­ing in div­i­dend aris­to­crats you might get a 5–10% (div­i­dend) raise. Even if that comes to just a cou­ple of dol­lars… that size raise is quite good. Did you get that sort of raise at work? (I haven’t.)

A final point. Time is your best friend because with time com­pound­ing hap­pens. Compounding is growth on growth… it can take a long time to see the impact, but it’s not an impact you can ignore if you want long term suc­cess.

I thought of that as I saw this tweet about health, which is also about finance. It’s worth read­ing the embed­ded link.

Compounding: hap­pens too slow to notice, makes too big a dif­fer­ence to ignore. https://t.co/kkmUMa3UdP pic.twitter.com/fxvF6Ux721

— Morgan Housel (@morganhousel) August 25, 2019