# @thejoserafaelhernandez on Instagram

- **Type:** Image
- **Original URL:** https://www.instagram.com/p/DADxmk7OFyt
- **Gondola URL:** https://gondola.cc/posts/59827272-thejoserafaelhernandez-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/683ac129e5.jpg
- **Posted:** 2024-09-18T12:45:51.000+00:00
- **Account Owner:** Jose Hernandez (@thejoserafaelhernandez) — https://gondola.cc/thejoserafaelhernandez

## Caption

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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A true total return approach focuses on both growth and income
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Focusing only on dividends (or growth) causes you to miss out on a large chunk of the stock market’s growth 
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In the end, it’s about allowing yourself to capture all of the benefits of the market while getting the “snowball effect” to work for you and your $$$
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This is why you hear people say investing gets easier over time because your $$$ eventually does start to do a lot of the “heavy lifting” for you 
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But what’s most important is getting started and sticking to a strategy you can trust no matter what happens in the short run
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If you found this post helpful, make sure to leave a ❤️
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And follow for more easy to understand investing content like this 🤝
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#investing #stockmarket #dividends #compoundinterest #rothira #investingforbeginners

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## Tags

investingforbeginners, dividends, stockmarket, compoundinterest, investing, rothira

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