A great way to re-invest your dividends into a trading account
The first powerful tool you can use to save money to trade, is with your dividends.
Usually a company will pay out a certain amount of their earnings (profits after tax – attributable earnings) to their shareholders.
You can do this by finding out when each of the companies in your portfolio will pay you dividends.
But what happens when they pay you?
The easiest thing to do is to give your broker a call… Ask him how much in rand value did you get for your dividends.
Next, all you do is tell them you’d like to transfer the dividends worth into your trading account.
You then have extra money from your shares to trade. No emotional ties and no saving your butt off to trade.
Limit the wallet and get a trading jar!
If there’s one thing I’ve learnt with having money in my wallet is this.
One day it’s in the wallet and the next, it’s gone!
Whether I have R100, R1,000 or even R2,000 in my wallet, in one week it goes very quickly.
If you know what I’m talking about then I have a simple solution for you.
Buy yourself a cookie jar. And limit how much money you have in your wallet at any one time.
So if you have R200 in your wallet, take out R100 and put it in the cookie jar and keep to your R100 only in your wallet rule.
In one month, you’ll be surprised how much you can save.
You might be able to save R500 to even R1,000 for your trading account.
Drink water to save money on groceries
I’m sure you can relate.
You go to Spar to do your weekly grocery shopping on an empty stomach.
And then find that you make impulse buys. You buy a chocolate here, biltong there and naughty guilty pleasures to satisfy your hunger.
This alone can add your grocery list amount R300 more.
So what should you do? Before you go shopping make sure you go on a full stomach.
Have a meal to the point where you can’t eat any more. Or if you don’t have a meal, then have a good litre of water before you go shopping.
When you drink water you’ll feel that hunger feeling subside when you shop.
You’ll buy your necessities and your bill will be lower.
And then with the extra money that you normally spend on, rather put a portion into your trading account.
It’s an easy and effective way to save to trade every month.
"Wisdom yields Wealth"
Senior Editor: Trading Tips
Head Analyst: Red Hot Storm Trader
Author: 94 Top Trading Lessons of All Time