Investing in DRIPs: Starting from somewhere instead of nowhere!

A DRIP, or Dividend Reinvestment Plan, is a pretty simple and good way to break into the investing world without having a whole lot of know how or expertise. With DRIPs you can learn how to invest while making a small portion of money, which if done correctly will grow over time.  Companies offer people with direct opportunities for current and new investors to join their programs with a small or even no initial investment at all, which is great for the novice investor want to get their feet wet. This is also a way to invest without paying brokerage fees for each transaction you make, when I first starting researching a big hindrance for me was the paying additional money to an outside source on my money.  With patience, and time, one just has to read up and learn how to invest in DRIPs in order to secure a more stable future for themselves and loved ones.

I was at the barber shop awhile back and heard a few young men talking about how they felt their master plan for saving money was going to keep them rich in the long run. From what I heard they were going to basically save up ten thousand dollars, buy a safe, then go to a backyard of a house they would have and dig a big hole.  In this hole they would place the safe in and then mix some concrete and pour it over the safe (security reasons) and let it harden. They would then come back in ten years and dig up ten thousand dollars, thus remaining rich for that cycle of their lives. Now being the person that I am I had to respond by telling them that the scenario they just described was the dumbest thing I have heard of, for that day. Of course we all laughed and about the story, but when I when I followed through with follow up questions, I began to realize these young men were serious, and what scared me the most was that they were in their mid-twenties with children! I bring up this story to say that we need to get into different realms and modes of thinking that are realistic and hold substantial value. We can all have a plan as the one I just described, but in the long run how effective is that plan? While they may have ten thousand dollars that was placed away and buried for ten years, there is another person who would have the same ten thousand dollars and actually plan for smart investing and within that same ten years’ time turned that into one hundred thousand dollars.  If these young men just simply planned and actually did some research into thing like DRIPs, they would understand that would secure a better future for themselves and their families.

We all have to learn to research the companies that interest use when investing or trying to invest on our own. It's always a practice to research about the business of the company that caught your interest, this also including reviewing the companies past performance with its stacks as well as looking at its future forecast. You always want to invest soundly and wisely in order to increase your money and keep a diversified portfolio. There are many websites you can research in order to see what best fits your personal situation, one website that I like is http://directinvesting.com/ , they give you everything you may be looking for as well as definitions to terms you may not be familiar with. It is time to seize opportunities for growth and prosperity, if you so desire to! Please feel free to leave comments or questions and I will be happy to respond!