I totally understand why some people can be intimidated by investing. It makes sense to think that if you are uninformed, you might lose all of your money. Or, that someone will rip you off. I get it. Money is a very emotional subject. It represents our survival, our happiness, and our status. We are not always comfortable thinking about putting it to work.

But if you really want to experience what it is like to invest and more specifically, invest for dividend income, like I suggest in my books and courses, then you can do it without much pain at all, and experience what it feels like to earn passive income.

Open an investing account.

There are a ton of online brokerages that offer low-cost trading and investing options. Look around and find one that offers you the ability to make trades yourself. Your bank probably has a discount brokerage available through their brand.

This first step costs you very little, except some time and maybe a few account fees. You might get a very well-rehearsed sales pitch to buy thier “products” and how you should trust thier investment advisors to manage your money for you. You are free to hand it over to them, but that defeats the purpose of what I am suggesting here.

By opening an investment account you are taking the first step towards overcoming your fear or uncertainty surrounding investing. Once you have everything in place and are able to make trades on your own you will begin to feel what it is like to be in control of your financial destiny. 

At this point you are free to do nothing if you wish. Take as much time as you need to explore all of the feelings you are experiencing when you begin to think of investing. When you are feeling OK with where you are at, you are ready to take the next step.

Buy ONE share

If you are wondering what you should buy, I suggest you begin with ONE share of a blue-chip stock. By blue-chip, I mean a company that has been around forever and is very unlikely to go out of business any time soon. You are not looking to jump on the latest IPO or skyrocketing tech stock. You want stability and boring. 

Sign up for my newsletter and you will receive a free download of my “how to pick stocks” guide, which offers a few suggestions.

If you buy ONE share of a blue-chip stock, make sure it is a stock that pays dividends. Dividends are your share of the profit a company makes and is distributed between all of the currently held shares. Some are paid quarterly and some are paid monthly. 

HOLD

Once you take the leap and buy ONE share of your favourite blue chipper, sit back and relax. Now it is time to feel the magic. You have bought ONE share and are now going to receive money on a regular basis for doing NOTHING. This is called passive income. 

The big day will come when your account receives the dividend. You will see a small amount of money deposited into your brokerage account. You are now officially an investor. You are NOT a trader. Trading stocks is a very different thing, and is gambling from my point of view. You have invested in the company and are now sharing in the profits. 

Congratulations !

You are now an investor and your total risk is probably less than $100.  You now are able to feel what investing for passive income is like. You will get used to the feeling of receiving that dividend, like clockwork, every three months or every month. You are in the big leagues now. Savour it. 

Because you are an investor, and not a trader, the price of the stock and the fluctuations of the stock market are really not your concern. As long as that payment keeps coming you are happy. You do not need to care about the value of your portfolio, you only care about your regular income from dividends. You rate your wealth by how much you receive without having to work for it. Now you are in a different class. 

Go BIG or Not

Once you feel comfortable with this setup, now you are free to scale it up or down as you see fit. Buy ONE MORE share. Or buy a hundred. It is up to you. 

By starting small and dipping your toes in the water first, you are learning the ropes and getting to experience the thrill of passive income without incurring more risk than you feel is necessary. You are totally in control. This is a beautiful, easy way to become an investor. 

So if you are interested in exploring more of what I am proposing here, read my books or take my course. I explain all the ins and outs of this system and how you can be a sophisticated investor without needing to be wealthy to begin with. You can start with very little and grow from there.

Investing is for everyone. You don’t have to wait until you have money to make money.