Your snowball isn’t going to go anywhere without a mountain.
When it comes to building an income snowball, there are two parts: earning money and investing.
Earning more money is like wandering around a field of snow.
You’ve got your snowball and now you’re picking up more snow to make the ball bigger.
But you only have two hands. It’s hard to grab very much snow. You could even get a shovel to collect more, but it’s still a slow process.
What you need is a mountain to roll your snowball down.
When you roll your snowball down a mountain, it automatically collects more snow.
You don’t have to do anything. Gravity does all the work.
That mountain is investing.
The Power of Investing
When you invest the money you earn, it automatically creates more money.
Then you invest that money to create even more. It just keeps going and going.
Let’s say you were able to save $4,166 every month for 20 years.
$4,166 dollars a month is a ridiculous amount for most people to save but stay with me.
Saving that amount per month, at the end of 20 years, you’d have one million dollars.
Now, if you had invested that $4,166 per month with a 7% return, you’d have over TWO MILLION.
More than double your original total.
In fact, to reach one million in 20 years, you’d only need to invest $1,900 per month.
Imagine that. You could invest less than half of that $4,166 and still become a millionaire in the same amount of time.
This is why investing is so important.
But, our goal is to generate more income from our investments.
Our goal is to keep getting paid long after we stop working. That’s why we invest in dividend stocks to grow our income snowball.
Dividend stocks send us a paycheck at least once a year. Sometimes they even send 12 paychecks a year.
With dividend stocks, you’ll be getting paid $30,000 a year from your million dollar portfolio.
And the best part is, that million dollar portfolio is going to keep growing!
Which means your paycheck is going to keep growing.
To help you get started, here are the top guides and how-tos on dividend investing: