I work for a company who pays a yearly bonus based on performance to all employees. While I don’t necessarily agree with this practice (just increase my salary! I’m not a donkey chasing a carrot!), since I perform well I usually get a huge bonus every year.
This year I will completely invest it in my freedom fund! Since I plan on retiring early from my dividend income, I’m happier than ever to receive it. Now, let’s hope there’s going to be a dip in the stock market pretty soon so I can invest it wisely!
In the past, when I didn’t know how to invest, I was using that bonus to pay my credit card balance like my colleagues did. I sometimes feel so stupid about it… If I would have invested all these bonuses since I work, I would already be close to retirement… But, no one teached me how to invest.
In school I learned how to be a good worker, trained with a school bell like a pavlov dog.
Dring – the day starts. Dring – lunch time. Dring – end of lunch period. Dring – end of day. Don’t forget to bring your homework… Did you ever realize that? School programmed you like we program dogs to give the paw! But they didn’t program us to be good investors… Corporations need workers, not financially free citizens!
My parents didn’t know how to invest neither. They were counting on the my father’s defined benefits pension plan… You know, these plans that are currently putting so much pressure on our society and who tend to disappear? So, most of their hard-earned savings are stalled in a GIC yielding 2% (minus current inflation at 1.5% = 0,5%). GIC’s wont bring you anywhere if your plan is to become financially free…. But at least your money is safe! I consider GIC like an interior parking for my car. I know my car will be safer there than parked in the street, but it won’t take more value…
And in the medias, on TV, they only show you spectacular things like a kid who’s made millions because he sold an app to Yahoo. So we start to think that us too we could make an app and become rich!
But, the truth is that in order to reach financial freedom, you need time. It’s not that difficult but you need patience. All you have to do is save a lot, invest wisely, let your money grow! And when you invest, it is inevitable that you are going to take risk. That is why you have to know what you are doing.
This year, I’m getting a 7,500$ bonus. This, plus my periodic savings subtracted on every of my paychecks will give me another 10,000$ to invest in my freedom fund.
With that 10,000$ I should be able to invest in at least 4 great companies, maybe more. I don’t want to pay more than 0,5% in fees when I’m purchasing stocks. My broker currently charges me 9,95$ per transaction. So I try to buy at least for 2000$ worth of stocks on each purchase. But, since I plan to keep my stocks “forever” (read : as long as the fundamentals of the business remains positive and as long as it pays a growing dividend), I can sometime buy for 1500$ worth of stocks and accept to pay higher fees in percentage if I think the price is great and if I don’t have enough money available to buy more.
What about you? Do you receive a bonus and do you do with it?
Image courtesy of Stuart Miles / FreeDigitalPhotos.net”
[author] [author_image timthumb=’on’]http://quityourdayjob101.com/wp-content/uploads/2014/03/ID-10050051.jpg[/author_image] [author_info]Hi, my name is Allan. I’m the masked blogger. Like you I’m a modern slave, prisoner of a 9@5 job in Corporate America. They told us when we were young that we would live in a society of leisure and that technology would permit us to work only a couple of hours per day. But we live in a society of stress and uncertainty. My situation could be a lot worse and I know it. So many humans are suffering on this planet. But a golden cage remains a cage anyways. At least, I have an escape plan. I will retire before 45 years old over my passive income. This is a dream that is so powerful that I will make sure it happens. To build my wealth, I mainly invest in undervalued dividend growth stocks. [/author_info] [/author]