i'm gonna show you in this video today how you can make money simply
by stopping the spending of money i'm not talking about something dumb like
oh well i saved fifty dollars so therefore i have fifty dollars that's stupid no no no instead i'm
talking about cutting down on stupid everyday purchases that you may not know you're making
and as a result of that you take that money and you apply this strategy that
i'll share with you today in regards to dividend investing you do that your savings of maybe 50
could eventually start making you some significant income and i'm talking about hundreds of dollars
you ready you set let's get started with today's video quick plug though if you are into personal
finance you want to build up your wealth you want to become a future millionaire and live
your ultimate suite life well then tap that subscribe button down below join the community
of fellow suite lifers that are doing the same exact thing so today's video we're going to talk
about you know the fact that we spend a lot of money sometimes on things that we don't realize
that we're spending money on did you know in 2018 according to oberlo the average u.s citizen spends
about 61 224 dollars per year you might think well wait a minute i don't even make 61 000 a year how
would i spend 61 000 if i don't even make that well that's where the problem comes in because
what's happening is tons of americans are going into debt they're spending way more than they
bring in and as a result you have things like auto loans student loans mortgages and all that other
crap and especially credit card debt that just drains on us it drains our souls it drains our
life but there's also monthly bills that might be going in and maybe you just have it set up
on autopay and you don't realize how much you're actually spending so my family and i went through
this little practice that i'll share with you today and we applied this strategy and built up
income that brings in hundreds of dollars this is really kind of cool before i get to the strategy
i want to know what's the dumbest thing that you ever bought what's that big regret you know you
go into a store right and you're looking around and all of a sudden something catches your eyes
and you're like wait a minute that's really cool i need to get that that would be awesome you decide
to buy it and then now you look back and it's like sitting around your house collecting dust and it's
a complete waste of money what is it drop a line down below i'm interested in hearing what is your
biggest regret purchase for me i think it was actually business related right here on youtube
i bought a bunch of lighting lighting systems that i ended up never using along with a backdrop
that was over a hundred dollars that i spent and i'm completely regretting it so as my family went
through and we looked through our monthly expenses we realized we were spending 209 a month that we
didn't really need to be spending things that we just kind of forgot to cancel i mean this is kind
of embarrassing but i'll go through them number one we had a food delivery service it was about 25
a month we also had a 99 meal replacement shake that we weren't using any longer it was just
piling up in the pantry and then the biggest hit that kind of annoys me and i'll talk through this
one a little bit more is a streaming cable service called a t tv now that was 85 a month so here's
what i need you to do before we get started with this investment strategy that could pull in 200 a
year in extra income based on cutting down your expenses first list down all of your old bills
you're going to maybe have to go back to credit card statements or your bank statements look
through everything and start listing them out and then make a list of how much dollars are flying
out of your pocket per month and start really plucking through what can i actually do without
what is really not bringing me any value but for some reason i just continue to spend that month
over month and it is what it is target it and look at canceling it another cool thing that you can
use is something called true build now what they do is they go through all of your subscriptions
and they can let you know hey here's what we're seeing that you may want to cancel or they can
negotiate a lower price for you therefore saving you some money on something that you still want
to use link down below in the description by the way this is not a sponsored video with trubil but
i like their service so i do have an affiliate link down below in the description so you can take
advantage of that if you need some help in listing out your expenses now let's say you find a hundred
dollars in your monthly expenses that you can cut i'm going to show you how you take that 100
and you start investing it which can eventually start earning you an additional income of up to
about 200 a year or more simply for stopping the american consumerism it's so freaking cool i hope
you're ready for this so i want to tell you the story of my atnt tv now i decided a couple years
ago in 2018 that we wanted to be cord cutters you know it's a very hot topic where everybody wants
to get out of the cable television and cut the cord and go to more streaming or internet services
well we decided to do that but we wanted to get something so we could watch local tv
so we found directv now now directv now at the time was around 35 and with taxes and everything
the monthly bill was about forty dollars now you compare that with our cable bill which was well
over a hundred dollars a month so we said hey this is cool we're going to scale back and we're going
to continue this now it has tons of channels it was a great alternative to cable we could stream
it over the internet with our smart tv and save a ton of money but those sneaky guys over the years
uh they they transformed from directv now to 18 t tv now and what i wasn't paying attention to was
every now and again they slightly increased the price and then slightly increased it a little bit
more flash forward to today that forty dollars a month is now up over eighty dollars a month which
is becoming pointless to me because it's just like my old cable bill why would i want to spend all
that extra money that's pointless that's stupid so we decided just a few days ago time to say bye-bye
to it and so what we have now is we lean a lot on netflix and hulu we have the cbs paramount plus
there's a lot of cool things out there and i like the idea that you can pick and choose what you
want and if you think about it ten dollars a month or fourteen dollars a month is a lot less money
than buying the entire cable package so that even if it's streamed or even if it's cutting the cord
it's completely gone now so now i'm saving 84 dollars a month in streaming services and
then i'm also saving of course what i used to pay which was well over a hundred dollars a month in
my cable now a lot of people may not realize that they're spending over a hundred dollars in their
cable bill or maybe you have a ton of streaming services that you're not even using oh my gosh
if you have something like netflix and you don't ever watch it why are you spending 15
a month look through all of that and if you can find yourself a hundred dollars a month
here's where things get interesting you are going to cut that hundred bucks out and you're gonna
invest it and this right here what i'm about to share with you today in my strategy for dividends
is why i think the rich get richer and the poor get poorer and i hope you're excited about the
fact that i want to make you one of those rich get richer kind of people because i continue to
be mad at my high school for not teaching me if we would have learned all this stuff in high school
we would all have a great amount of wealth instead we're all subject to this insanity
that we deal with every day where we wonder where the money goes at the end of the month but
check this out so you take that hundred dollars a month and we're going to invest it
into a great dividend paying etf exchange traded fund now you can get this on something like
robinhood very easy investment app to use especially if you're a beginner i'll include
the link down in the description below where you can get free stocks simply just for signing up to
robinhood and then it's up to you if you want to deposit money and start your investment journey
but if you get robinhood and you save yourself some money maybe put that hundred dollars down
toward whatever stock or etf that you believe in i'm not a financial advisor but i will say do your
research and find something that you believe in that has a nice long track record so i'm going to
give you an example of a dividend paying etf let's choose today we're going to talk about s c hd
the schwab dividend paying high dividend paying etf now let's say for example you found a way to
save yourself that 100 a month a year ago so we're going to go back to february 14th 2020 and this
is even before the market took a little bit of a downturn based on the pandemic february 14th 2020
and you decide to start investing in schd so if you cut a hundred dollars a month you are going
to save yourself one thousand two hundred dollars a year hundred times twelve months equals twelve
hundred dollars instead you're gonna find a way to get all twelve hundred dollars right away and put
that into schd so if you did that on february 14th you can see right here schd trading for a total of
58.85 cents a share 1200 at 58.85 gets you 20.39 shares and yes you can get fractional shares with
robinhood that's why i like them because you can kind of fraction that out and put all of your
money to work right away so we got 20.39 shares and then a year later because we cut out the cable
bill or whatever you can find to cut out of your budget that 1200 is going to grow and here's how
it gets very interesting let's look a year later so in february 19th of 2021 check this out those
20.39 shares are now worth 1 382.29 which means your 1200 that you invested just grew 182.29
and this is where it gets even more exciting on top of that you would have earned more if you
reinvested the dividends they pay down so if you didn't reinvest the dividends and you just kind of
got the dividends that schd pays out every quarter it would go into your robinhood account and
you would have made an additional 41.34 cents in dividend payouts over the last year that's a total
profit of 223.63 in one year just for cutting the cord on cable as my example explains now i always
recommend reinvesting the dividends what i mean by that is there are companies that pay you dividends
just for earning shares of their stock or their etf schd they pay quarterly and what you can do
is you can opt to say okay i want you to pay out the dividends or i want you to take the
dividends and reinvest it into another fraction or whole share whatever that price affords me
and continue to snowball that up that's where things get extremely lucrative so in this example
i'm gonna pull up my ipad screen so you can follow along with me on dividend reinvestment
and how that can actually earn you so much money by cutting out the crap out of your life so this
is a website i found uh huecalculator.org so shout out to this random website so let's talk about our
example here with schd so principal investment balance amount was twelve hundred dollars
and we're not going to contribute any more now of course we always want to do that we always
want to continue to invest but in this example i must say we're not going to invest anymore
the current price at the time that you invested last year was 58 and 55 cents now what i would
recommend for the expected percentage we're gonna aim for somewhat conservative i'm going to only
say six percent growth typically the s p 500 grows at a rate of 10 per year on average if there's
good years there's bad years i'm just gonna go a little bit lower than that and say six percent
number of years to invest let's say you're going to just let this sit in here for the next 10 years
and just reinvest the dividends and don't touch it at all that's all you're going to do the current
dividend yield thanks to seeking alpha right here you can see the year-end yield for 2020 was 3.18
so i'm going to type in 3.18 and the dividend growth rate all right so over here it says annual
payout growth look at that growth percentage on schd wow that is really good but let's be
somewhat conservative now i see a 17 and 19 6 blah blah i'm gonna aim to be low on that and i'm gonna
say also six percent for this and basically what that means is that the dividends will continue
to grow typically you want to find companies that pay a dividend that have a track record of growing
their dividend over a long period of time as well as growing their overall etf value that's always
an important thing to look for so six percent we're gonna have drip we're gonna say it is not
taxable we're gonna say it's a qualified dividend for that and let's calculate the return all right
here is what we got the starting balance of twelve hundred dollars with dividends we invested is
check this out your ending balance would then be two thousand eight hundred and sixty six dollars
and sixty six cents this is based upon not only the growth but your dividends that are paying out
just being reinvested so that's all you do you cut your cable bill you save up what would be a year
worth of cable bill for 1200 you throw that money into something like an etf you sit back you relax
maybe you go on a cruise and visit the tropics and then in 10 years you grew eighteen hundred dollars
for doing nothing guys imagine if you did something with it imagine if you contribute
an additional hundred dollars a month now if we hit calculate return look at what it grows to
twenty thousand dollars hundred bucks a month so you save up a year and then you continue to do a
hundred dollars it gets more exciting the more you continue to contribute that's why it's not
good just let it sit but if you let it sit you're still going to make money but if you
contribute oh things are going to get super exciting hey was this video helpful if it was
i would appreciate just one thing for you tap the like button down below it's super helpful
and make sure you check out these videos so you can continue to grow your ultimate
personal wealth and your ultimate sweet life we'll see you on the next video