- Just the other day I was putting on a pair
of my most favorite, most comfortable, pair of joggers,
and after sliding these bad boys on,
I put my hand in the pocket, and sure enough,
I found a wadded up $20 bill.
Still to have no idea how that money got there,
but it's not the first time this has happened to me,
and I'm sure you can relate.
I'm sure you've found some old money in a jacket,
or a pair of pants, or maybe while doing your laundry.
Or maybe the best place is when you find that old money,
stashed away underneath your couch cushions,
right next to some funky Cheetos or Doritos,
you ate six months ago while watching Netflix,
on a late-night binge.
(keys rattle)
- What the? - What up?
- Now, I don't care what kind of day you're having,
finding any sort of money whether it be $5, $20, or $100,
like, that is going to make your day that much better.
But what about finding over $30,000,
that you had no idea existed, and it's all yours,
how would that make you feel?
- Yes, yes.
- Well today I'm going to share a real-life story,
of some former clients of mine, that woke up one day,
and found out that they were $30,000 richer.
How did this happen?
Well, we're gonna find out how, and more, right now.
(upbeat music)
You know, since we're talking about
finding money in couch cushions,
I'm just gonna go ahead and check real quick.
Oh, that's what I'm talking about baby. (hoots)
What's going on you all,
welcome back to the channel, Wealth Hacker Labs,
this is the channel dedicated teaching you new ways
to grow wealth that is not taught to you in school,
or by your parents, I am your gracious host, Jeff Rose,
and this is actually a fun story,
one that I almost forgot about,
but then whenever I started the
$100,000 Grow Your Dough Challenge,
where I have two different investment accounts,
one with M1 Finance, the other with Robinhood,
but with the account that I invested into Disney,
this is where all those memories started flooding back.
So one of the stocks that I had selected was Disney,
and one of that, was because one, my daughter loves Disney,
she loves frozen.
We got Disney Plus which, we just enrolled in.
We just watched the the Magalorian, "Mandalorian",
man the DeLorean.
No, we're not going back to the future, right?
No, nevermind and my kids loved it,
like I seriously want to go buy a baby Yoda right now.
(dramatic music)
(weapon blasts)
But I digress, back to the story at hand,
I'm talking about these former clients of mine.
So this meeting took place about,
I'm gonna guess 10 years ago,
and my clients then were in their early '70s,
and they had been clients for a while.
A lot of the positions that they held,
were individual stocks,
and one of those stocks that they owned was Disney stock.
Now I'm not exactly sure when they purchased the stock,
but I believe it was sometime in the early 60s,
and whenever they bought the stock they bought 100 shares.
I'm not exactly sure how long they had the stock,
but somewhere along the way they needed
to do some home renovations,
so they had a nice little gain,
and they decide to sell all of their Disney stock.
So at least that's what they thought,
and that's where the story gets fun,
but before we share any more details,
let me give you some history on Disney stock.
So Disney stock became publicly traded back in 1957,
for $13 and 88 cents per share.
Since then there have been over six stock splits,
over the company's history.
So if you would have bought $1,000 worth of Disney stock,
back in 1957, you would have purchased 72 shares.
That 72 shares today would be worth over 27,648 shares.
Like, that is how much it's grown.
Now when my clients bought the shares,
they weren't issued a stock certificate,
they would have used,
which nowadays people refer to as computer share,
so basically you are buying your shares
through some sort of custodian, or some sort of agent,
and they hold the share for you.
As I mentioned my clients bought 100 shares of Disney stock,
and then whenever it was time to do their home renovations,
or do their home project,
they sold 100 shares of Disney stock.
So what do you think happened?
This is why I love this story so much,
and why I want to bring this up,
especially with me doing the dividend portfolio
with this Grow Your Dough Challenge,
because dividends are a real thing, they are a force.
Many people see a stock that's paying a dividend
of one and a half percent, or even three and a half percent,
and they just think, oh that's all the dividends paying,
ooh, three and a half percent, whoopty-doo.
(energetic music)
But if you are investing for the long-term,
then you realize that dividends are a powerful force,
and you don't want to mess with the force.
(dramatic music)
- Let's get out!
(men scream)
So I'm not really sure how this went down,
and I can't imagine this would have happened nowadays.
So whenever my clients bought 100 shares of Disney stock,
they then sold 100 shares of Disney stock.
But, what happened between the time that they bought,
and the time that they sold?
Disney paid a dividend, and they reinvested those dividends,
and bought additional shares,
even though they didn't have any clue.
So actually what happened was, they bought 100 shares,
and then they sold 100 shares,
but they actually had three shares left over.
Ooh three shares, big deal.
Actually, it's a really big deal,
in fact it's a $30,000 big deal.
As I mentioned earlier,
Disney had six stock splits in his company's history.
Now I don't think they went through all
those six stock splits with those three shares,
but I think they got through a good chunk of them,
because that three shares ended up growing
to be over $30,000 worth of Disney stock.
Now finding a $20 bill in a pair of joggers,
like that's a good day,
but what about finding over $30,000 of Disney stock?
Like, that is an amazing day, because guess what?
Now you have over $30,000 more in your bank.
And what we like to say here on the Wealth Hacker Channel,
that is "Money in the bank" baby, $30,000 worth, pow.
All right, the two big takeaways
I want you to get from this,
is one, do not discount dividends, dividends are a force,
especially when you are compounding, and reinvesting,
and buying more shares, and that is big takeaway number two,
is that you don't want to take those dividends as cash,
unless you are retired, and this is your retirement income,
but if you are still young,
you are reinvesting those dividends.
You are buying more shares,
because that's how you continue to grow wealth,
through compounding interest,
and through those dividend payments.
So let me go in throw in a third takeaway.
You're not gonna take advantage of any dividends,
of any compounding interest, unless you start investing,
and buying, stock or mutual funds, or ETFs.
You've got to buy something.
So if you are still watching this,
and you haven't taken part in any sort of investments,
stop wasting your time, open an account with M1 Finance,
open account with Robinhood, E Trade, Ally Invest,
I don't really care where you open your account,
just open the account and start investing.
No more excuses, start investing today,
so that one day you can wake up,
and you will have that much more money in the bank.
All right until next time, this is Jeff Rose,
reminding you, that is your money, it's your life,
and you can only make it awesome,
if you put money in your bank, so start investing, peace.