The Slow and the Steady will win the race of Income investing. Contrary to advertisements about investing being done at a Fast and Furious pace, true wealth is more likely to be built at a slow and steady pace. In a previous article I took the model of a penny compounded or doubled for 20 days to use as a model. If a penny was compounded for 20 days, it would look like this
Target 1 ------------------------------>$0.01
Target 2------------------------------> $0.02
Target 3 ------------------------------>$0.04
Target 4------------------------------> $0.08
Target 5 ------------------------------>$0.16
Target 6 ------------------------------>$0.32
Target 7 ------------------------------>$0.64
Target 8 ------------------------------>$1.28
Target 9 ------------------------------>$2.56
Target 10 ------------------------------>$5.12
Target 11------------------------------> $10.24
Target 12 ------------------------------>$20.48
Target 13 ------------------------------>$40.96
Target 14 ------------------------------>$81.92
Target 15 ------------------------------>$163.84
Target 16 ------------------------------>$327.68
Target 17 ------------------------------>$655.36
Target 18 ------------------------------>$1,310.72
Target 19 ------------------------------>$2,621.44
Target 20------------------------------> $5,242.88
Based on the stocks I have been able to acquire in May and June, I have build a monthly dividend income of approximately $1.49 which takes out Targets 1 through 8. I have been documenting each purchase in my OptionsXpress Investment Journal.
Here are the entries documenting my trades.
Purchases In May
1st Stock Purchase
2nd Stock Purchase
Purchases In June
3rd Stock Purchase
1 Dollar and 49 cent in monthly dividend income is probably not all that exciting to some. But it is not where START that matters...It is where you FINISH.
What are the ways that you are building passive or residual income (Cash Flow)? Please leave your comments or questions in the comment box below.
