Tony Farrell's Easy Money Making and Credit Building Tips

Here is the general idea, and I have done this myself, an advanced risk-based savings account with the advantages diversification, compounding, dollar cost averaging, and high yields. I have had very good results. See my web site http://www.monthly-dividend-stocks.com for more information.

1. Open a brokerage account, set up to get dividends paid in CASH.
2. Buy securities and stocks with high yields and which pay monthly dividends in CASH. Decide on an amount you can spend each month, and add one more DIFFERENT stock to your portfoilio. (Note: I’ve found that with Scottrade, where trades are $7 each, it made the most sense to invest $ 200 or more per month)
3. Each month use the cash dividends to buy a little more than your baseline amount of an additional monthly dividend paying stock. So if your first purchase has a 12% dividend yield, netting you an additional $ 2.00 for the month, then buy $ 202 worth of the next one, and so on. Always buy a new one to stay well diversified, so if one drops in price, the overall impact to your portfolio is minimal.
4. Keep going until the net monthly cash payouts are the same as your baseline, which in this example is $ 200, and then just use that income to keep buying more.

Get the idea? After a year if you invest $200 per month average 12% yield layouts and your trades cost $7 each, and the overall portfolio yields and values remain constant, you’ll have saved up about $ 2600 and built a machine that produces an extra $ 24 per month of income in cash. Keep going at the same rate for four more years, and at the end of five years, you’ll be sitting on about $ 20,000 saved and be making an extra $ 200 per month in income, which is what the example goal was. The $ 12,000 you put in over five years will have grown to $ 20,000 which is an overall 66% return over a five year period, give or take. Results could vary greatly depending on market conditions.

Of course, this is NOT investment advice and should NEVER be treated as such. I completely lack the credentials. I’m merely explaining what I have done, that has worked well for me.

If you want to see a great list of high yield monthly dividend stocks, check out my web site at http://www.monthly-dividend-stocks.com today!