Sat Apr 27 2024, by Tyler Gardner
How to Live Without Paying for Anything: The Legal Way
Hey Dad, could you tell me something that seems illegal but isn’t?
Absolutely! I don’t pay for anything I buy.
That’s called stealing.
Oh no, my assets pay for everything.
Example: Costco Membership
Can you give me an example?
Let’s say you want a premium membership to Costco for life. Ooh, hot dogs!
You need $120 a year. We know that Walmart pays a 1.71% annual dividend. So if we save $7,000, invest that money, you get $120 a year just in dividends.
Wouldn’t I have just used that $7,000 on a Costco membership for life?
This way, you get the Costco membership, and you still own $7,000 worth of stock. It’s the double dip.
Learning Opportunity
You’re learning, son. Follow SocialCat. He makes complex finance seem easy.
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