There is an old saying that "If you aim at nothing, you'll hit it every time". The same principle holds when it comes to investing. You must have a goal, and if your goal is financial freedom, you must build a dependable and continuously growing passive income stream. This is because relying solely on earned income from a job or business exposes you to a high level of risk. If you lose your job or if your business faces challenges, your income will be significantly impacted. Similarly, if you are relying on stocks that don't pay dividends, you are at a very high level of risk because the stock market is extremely volatile and unpredictable.
So how do you build a dependable and continuously growing passive income stream large enough to replace traditional sources of income? Albert Einstein famously said, “Compounding is the eighth wonder of the world.” Consider the incomparable power of the snowball effect created by compounding dividends. As you accumulate more shares, your income stream grows, culminating in exponentially larger dividend payments in the future. And since stock market volatility does not affect companies' ability to pay dividends, your income stream isn't affected when the stock market goes down. If you don't want to work until you die, take Warren Buffett's advice and start making money while you sleep. To learn more about the advantages of income investing, continue to the next tab and read about INCOME INVESTING ADVANTAGES.