Wednesday, July 20, 2011

Doing what the Rich Do- So I can have what the Rich Have.

I started this blog on May 30th, 2011. My goal for writing this blog is to learn apply and practice principles of wealth an share them with others. Based on my understanding of how to be wealthy, I need to do 3 things: (1) Buy things that pay me, (2) Re-invest my profits, and (3) form a network.

I have successfully completed parts 1 and 2, but I am having difficultly with part number 3. So far I have not been able to form a group and duplicate.

Below is a Snap Shot of my Account at Options Xpress as of Today

In May I was able to purchase 1 share of Microsoft, and 5 shares of ARR. This created a month income from dividends of 60 cent. In June I purchased 7 more share of ARR which increased my dividend income from 60 cent to $1.44. The dividend income was automatically re-invested into a dividend re-investment program (a.k.a "DRIP".) The DRIP purchased .2 shares of ARR giving me a total of 12.2 shares of the stock. This Also increased my monthly dividend income from 1.44 to 1.45. Even though it was just a one penny increase I was encouraged to know that it was working.

In July I purchased 5 more shares of ARR. I have now acquired 17.2 shares of the stock. My dividend income has now increased from $1.45 up to $2.04. If I can get the income above $2.56 I will have taken out target 9 of my 20 step plan.

The hardest part about investing is dealing with commissions. Every time I purchase a stock a 10 dollar commission is paid. So far I have made 4 purchases, and, I have lost 40 dollars in commission transactions. In order to overcome the challenge of dealing with the commissions, I will have to complete step 11 of my 20 step plan. At that time I will covering the commission cost through dividends.

This is slow, but it is working.