One of the best ways to unlock the power of compound interest in your investing is…👇🏼
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To combine the growth of the market and reinvest your dividends along the way
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This is what’s called a “total return” approach and is one of the most solid long term ways to build your wealth from scratch
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Dividend reinvesting is simply taking the cash you receive from dividends to buy more shares of investments in your portfolio
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Even though your portfolio (and dividends) may start of small…
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With enough consistency, over time, you’ll start to see a “snowball effect” in the value of your investments
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If you think about it, it’s really simple
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As you buy more shares, the more you start to receive in dividends
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And the more you receive in dividends, the more shares you can continue to buy, which will pay you even more in dividends and so on
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It’s important to note that the strategy doesn’t only rely on dividends
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