While this blog’s main purpose is to talk about dividend investing, I think that there are several ways you can invest and earn dividends. And some ways are not sold on the stock market. One of them is to invest in yourself. As we are about to start a new year, it may be the time to make some serious resolutions and improve some of your skills.
Invest in your knowledge – Become a better investor
By becoming a better investor, you will certainly be able to make more money over time. Buying the right stocks and selling them at the right moment makes the difference between an interesting yield and a very good one. Investing in your knowledge to become a better investor will eventually generate dividends. Here are a few tricks how you can improve your trading skills:
– Read several sources of information (newspapers, financial websites, blogs and The Dividend Guy Newsletter)
– Register for courses (you can register as a student and pay for only one course in many universities. If you have specific questions or would like to learn more about how to read financial statements, this could be a great way to do it).
– Buy books (I’d say that the problem with books is that you read too much and you do too little. What I like about the first 2 solutions is that they are more practical and easier to apply).
Invest in your career – Be a better employee
Another way to earn dividends from your time and money is to invest in your career. Getting promoted or increasing your bonus at the end of the year are definitely great ways to use your talents. There are specific things you can do in order to boost your career:
– Get a professional certification (in several fields, getting a professional certification will lead you to better job or simply increase your salary).
– Learn from other employees (spend time with some key employees or an expert in a specific field. Try to learn from them and gain their knowledge. If you can become a “backup” to someone considered as an “expert” in your field, you will definitely open some doors).
– Go back to school (I personally completed an MBA in financial services while working full time. It was a tough experience (especially if you have a family) but it is definitely worth it. I have expanded my network and was able to get a raise the same year).
Investing in your business – Earn more dividend income
About a week ago, I wrote about how my online company went from $18K to $124K in revenue in a single year. Back 2008, I invested a lot of my time and remortgaged my house in order to create an online company with one of my friends. We have been working since then and the company is now paying off dividends.
Creating a sideline or a small company is often another great way to build dividend income besides the one you receive from the stock market. When I compare my yield to my current investing, I can only say that it is tempting to invest all my money in my company. It was able to pay me back within 2 years and is now paying me dividends of about $6,000 per year and it keeps growing.
Using my knowledge and passion to create passive income was the best move I have ever made. I can understand it may seem more difficult for some people to create a business but I can tell you that there is always a way to transform your expertise into some real money.
While dividend investing is all about investing now so you can earn passive income in the future, I think you can apply this principle to several aspects of your life.
Starting a new company is way easier for some people than to others. Why is that? You put a lot of time in your online business, at least at the beginning (and this is normal), but the structure of your company did not ask for too money input. Most small companies are generating a lot of expenses to start and a small dividends in return. I mean, online companies are not asking for too much money input at the beginning, but most companies do. I think it is not even worth thinking about it if you have to rent a place, hire employees or buy a franchise right at the first months you started (unless you already have great money to invest).
Mike,
This is a pretty interesting take. I like looking at business ideas (esp. passive income) as a way to have an investment that throws off cash flow in the form of dividends. I have been experimenting heavily with a few ideas, but I love the idea of investing in yourself. It is tough right now to decide between what money I want to invest in my businesses versus putting money in the market, any thoughts on finding a balance? I’m still early 20’s and single so fortunately without any big debts or people to support…yet.
Regards,
Brett
@Brett,
On top of that, you have plenty of time and energy. Invest yourself in a specific project and you will earn some serious dividends 😉
This article came at a great time, I was on the fence about spending money on something that could possible help my business in the future. It’s not a whole lot of money but since I’m on a budget I have to make decisions based on wants and needs.
So after reading about registering for a course and investing in my knowledge, I’ve decided to invest in myself.
Thanks 🙂
@Andrea,
Good to hear that! Very glad it helped you out. Good luck with your projects. Can I ask how will you invest in yourself exactly? You decided to register for a course?
Going back to school can be very challenging. I’ve heard many people tell me that they plan on going back but they just can’t find the time to do so. Those that do go back experience either a nice raise or a more lucrative position.
In my own experience that learning from other employees can be the most beneficial. There’s a reason that some people work in management and why some never move up the ladder.
@MD,
Very true! Either its going back to school or learning from others, the key is only to evolute and try to not stay at the same “knowledge” level, no matter as good it can be.