Each week you'll learn how to be a better dividend investor and follow the journey of a welder with a passion for passive income to $1,000,000 and beyond.
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💩 Situation...
Published over 2 years ago • 3 min read
Presented By: The Early Bird
Official affiliate partner The Early Bird
We had just finished watching Cobra Kai when I noticed the hallway carpet looked dark.
Was it shadows or something much worse?
Nope. It was much worse.
Our main sewer backed up again because of tree roots, and sewer water was inside my house. Again.
What a shitty situation.
This isn't our first rodeo with the sewer monster. We've tried chemicals and several Home Depot drain snake rentals to do it ourselves.
We want to be frugal so that we have money to invest. That's our investment capital - money earmarked to make more money.
But frugality is on the slippery slope to being cheap...which I'm guilty of.
Two years ago, we could have spent $6K to fix the sewer line properly with an exterior cleanout. Instead, I went cheap and spent $1,500 hydro jetting the main line.
It was an expensive band-aid, and "Buy cheap, buy twice" comes to mind.
While cleaning up sewer water from a carpet at 11:34 PM on a Thursday, long-term thinking came to mind:
Short-term (like hydro jetting): It seems cheaper now but leads to more problems and costs later.
Long-term (like a proper sewer fix): Bigger upfront cost, but fewer headaches and more peace of mind.
In investing, it's similar:
Short-term: Jumping between stocks, trying to time the market.
Long-term: Steadily buying quality companies, reinvesting dividends, letting compound interest do its thing.
This year, I made some long-term moves. I sold Altria and AT&T to buy Visa.
We traded higher current yields for what we hope is better total return and dividend growth down the road.
Just like with our sewer, the cheapest investing option isn't always the best in the long run. Sometimes, it pays to invest a bit more upfront.
So, think long-term, whether you're dealing with a backed-up sewer or building your portfolio.
Your future self will thank you.
😁THANK YOU to everyone who responded to the last newsletter!!
6 Johnson & Johnson (JNJ) | $155.68 (Fully exited our JNJ Roth position to consolidate into more Visa. We still have 113 shares of JNJ in our taxable account.)
1 Nexstar Media (NXST) 9/20/24 $195 Covered Call | $3.98 (We received $397.33 after Schwab's $0.67 fee. The target is a 70% gain to close the position if/when Nexstar share price drops.)
"You can't tell the quality of a decision from the outcome. There's so much randomness in life that good decisions fail to work, and bad decisions work out pretty often."
🤑Rick Stambaugh from Orange Mountain Financial brings you ‘Grow Retirement Income.' He’s a seasoned pro with over 30 years in trading and a passion for guiding folks to a prosperous retirement.
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Each week you'll learn how to be a better dividend investor and follow the journey of a welder with a passion for passive income to $1,000,000 and beyond.
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