Financial Success Is Possible

… and Without Needing To Think About Money Every Minute.

What Is Financial Success?
What is success for you? Is it financial security? Is it having the resources to know you don’t need to worry about money? Is it the option to know that losing a job won’t mean you lose everything?

No, Not Quick Riches
This is not about getting rich, although it might happen. The is definitely not about getting rich quick. This is about financial growth. About financial good judgment. And financial prudence. All at the same time.

It is about achieving an additional source of wealth. A source of wealth that does not entail your job.

It is possible. It is possible for the average person with an average salary. You don’t need to be rich to start.

Getting Ready
As we begin this journey, there are several things to know. Firstly, and foremost, is the knowledge that this journey is not only about finances, but also about attitude. The ability to look at the long view, the ability not to get caught up in panics or manias, the ability to ignore short term noise and news. The ability to focus on what is really important.

Where To Begin
Know this important concept: LESS NOW, MORE LATER. This principle is the key to attitude, thinking, and behavior. Don’t forget it.

Now, About Money
While it takes money to make money, is does not take much to get started.

Before You Begin
Don’t even begin here unless you have an emergency fund. You need money in the bank that can cover your expenses for at least several months, the amount is up to you. You don’t want a temporary need for cash to force you to sell.

The Beginning
Now that you have an emergency fund, don’t touch it! Do not use your emergency fund money for this process. Save additional money to start your financial journey.

To start you will need a few hundred dollars, depending on your choice of which company to invest in. You need to choose one company to start your investment with.

Comet illustration. 1587.
Comet illustration. 1587.

Who?
Choose a large, stable, long-established company that pays dividends. This is not the place for me to recommend any particular company, but I suggest you will want to think about companies such as Johnson & Johnson (JNJ), Colgate-Palmolive (CL), Coca-Cola (KO), and so on. Since I am not an investment advisor, it is not appropriate for me to recommend any one company. I strongly suggest you choose a company which has paid dividends for many decades.

Choose one company to start. Don’t spread yourself too thin at the start. Choose one company. Next step: determine the company’s transfer agent. This is possible by looking at the company’s website, usually under the Investors section. Find the transfer agent name and website.

If you choose of the three companies mentioned above, as it happens they all have the same transfer agent: Computershare.

Of the three companies mentioned, you can purchase stock for two of them directly from the transfer agent.

Stock in Colgate-Palmolive and for Coca-Cola can be purchased directly from the same transfer agent, Computershare.

To purchase Johnson & Johnson stock through the transfer agent, you must already be a stockholder.

For this post, let’s discuss buying directly Colgate-Palmolive or Coca-Cola from the transfer agent. We’ll discuss how to buy Johnson & Johnson (or any stock where you must previously be a stockholder) in a later post.

Note that there are several companies that have Coca-Cola as part of the name. If Coca-Cola is one of your choices, I recommend not choosing the Coca-Cola bottlers, but choose the Coca-Cola company, symbol KO.

Get Started
At the transfer agent website, find and click the link to “Make a Stock Purchase” or “Buy Shares” or similar. Enter the name of symbol of the company you have chose to invest in. Make note of the minimum investment, and whatever fees to start an account. You’ll normally be able to invest directly online if you have your bank account routing and account numbers available, no need to mail in any forms. Investing the minimum to start is common at this point. Choose “One-time purchase.” Be sure to select “Reinvest all dividends.”

Follow the instructions, and you are done! Better yet, you have started! In a few days the amount you have designated will be deducted from your bank account, and the shares will be purchased shortly after that. You will receive a confirmation statement in the mail, or in an email, depending on your choice when you set up the account.

How It Now Works
Every quarter, when dividends are paid, additional shares, or fractions of a share, will be purchased with the dividends. So, the amount of shares you own will increase automatically. And, because every quarter the number of shares you own increases, that also means that every quarter the amount of dividends you receive will normally increase as well.

Ta-Da!
You now have successfully begun your journey to financial success!

More…
There is a lot more that can be said. Topics like how to choose which company to invest in, how and when to increase your investments, not selling when prices fluctuate, and so on. These are topics for another day. Right now you can bask in the glory of taking your first steps setting yourself apart from wage slavery. As your investments grow, so does your financial net worth. The best part is that what you have started can happen automatically: your dividends purchase additional shares every quarter without any intervention needed.

Have you started? Let me know here.

The illustration of a comet is one of a series from an unknown author in a hand-lettered 1587 book entitled Kometenbuch (Comet Book), subtitled (in translation) “Comets and their General and Particular Meanings, According to Ptolomeé, Albumasar, Haly, Aliquind and other Astrologers.” It is currently in Universitätsbibliothek Kassel (Kassel University Library, Kassel, Germany). License: Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

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