INVESTOR MINDSET OR CONSUMER MINDSET?

“Here’s how I make $20,000 a year from my dividends” is a catchy hook, but it’s not realistic for most people. 

A dividend portfolio that allows you to make 20k a year costs almost a million dollars. 

“Well, that’s not attainable, so I just won’t invest anything. Ever.” 

Life is short, we could be gone tomorrow, screw it! I’m gonna buy that handbag, that PS5, those expensive Nikes, that Omega watch. We have a consumer mindset.

The consumer mindset is essentially robbing your future self. How many times has an opportunity presented itself … but you couldn’t participate because you had no money? Where’d all that money go? Besides the obvious (rent, mortgage, groceries), maybe it went to stuff? 

Here’s how you switch yourself from the consumer mindset to the investor mindset. Start small. 

Nobody is retiring on one share (unless they have Berkshire Hathaway).

One share gets you in the game. The stock appreciates. You get a dividend. It’s … not much. But now you’re thinking like an investor. What if I had more shares? How much would I have made if I had 25 shares instead of 1? What would my dividend have been? How can I get there?

Now, you’re cutting back on excessive spending. Key word is excessive. We still have to live. 

Now you’re buying 2 shares. 

You start walking dogs and cat sitting on the side. You’re making more money. And you’re investing it.

Now you’re buying 10 shares.

You decide to rent your second bedroom out. You hate having a roommate. But it’s a short term sacrifice so you can invest more. You sell some of your old clothes or shoes or video games on Facebook Marketplace. You’re changing the way we’ve been conditioned through society and media and advertising to be a consumer.

You’re still buying yourself the occasional treat. But instead of filling your closet or cupboard (or stomach) with crap, you’re filling your portfolio with investments.

Now you’re buying 25 shares. And if you’re thinking, “Okay, but I don’t know what to invest in,” Seeking Alpha’s Quant Rating System helps me. You can join here and watch a quick video here.