There are two sides to Running From Debt. There is the debt reduction portion of the equation. You want to eliminate those negative numbers from the equation. On the other end is income accumulation. You want to up this number as much as you can; working overtime, getting a raise at your job, working part time at another job. More income means more money to pay off the debt.
Something clicked in my head sometime last year regarding this simple equation. There was one part that irked me a little.
That part was me. I can only earn money if I was physically present at work. I can only work so many hours. There was a cap to my earning potential. The second I leave work, I stop earning an income. When I am home with my family, I am not bringing home any income.
I thought about this for a little bit and thought, how can I earn some income regardless if I am at work, at home with my family or asleep in my bed?
Last year, I dipped my toes into the world of stock investing. Instead of accumulating materials that lose value, I looked into buying shares of companies that will grow in value. I started really small and bought shares of two companies that I know very well: Nike (NKE) and Disney (DIS).
I sold pairs of shoes and bought a piece of the very company that was selling me the shoes.
Instead of buying the latest Nike Flynit or Air Jordan for $150+, I bought shares of the Beaverton, Oregon company. So instead of keeping the latest Air Jordans piling up in my closet, I am now piling up the company’s stock in my account. Now every time a shoehead goes out and purchases the latest pair of Lebron’s or Kobe’s, I get a small sliver of that pie in the form of quarterly dividends. It may not be a big amount to retire on yet, but with the power of compounding, it will hopefully grow into something special.
“Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t, pays it…”-Albert Einstein
Disney, well,who doesn’t know Disney? If you have been living under a rock, then maybe you’ve heard of some of the companies/franchises they own: ABC Network, ESPN, Pixar, Marvel, StarWars, etc… They bring in their revenue hand over fist through movie sales, theme park tickets, advertising, merchandising sales, etc. As long as the company continues to add new faces to their already popular stable of charactersI know Disney is going to be around for a long time.
As I slowly pay off more of my debt, I hope to plan on investing my extra money into assets that will produce more income for me in the future. I plan to talk a little bit more on purchasing assets such as investing in stocks, and the possibility of starting a business.
Have you been interested or are currently investing? If so, what is your plan?
full disclosure: Long DIS & NKE. I am not an expert in investing nor do I claim to be. So please do not take any of my opinions as investing advice. They are only opinions, and are for entertainment and informational purposes only!