Yesterday was a fair day with the teen and a family friend. Coca-Cola was a big sponsor, and everyone who donated school supplies not only got in for free but was also given free Coca-Cola bags.
Saying I was excited to see them as a big sponsor is an understatement. Once inside the gates, they handed out free ice-cold mini Powerades and cans of sparkling water to fairgoers.
The family friend I was with knows that one of our biggest holdings is in Coca-Cola, and during one of our conversations, I told her that as I get further into my investing journey, I value how dividend investing allows us to buy back our time, so we have more time to spend on personal projects or with family.
To break it down, right now, Coca-Cola pays our household $80 a year, which breaks down to $20 every quarter, further breaking down to $6.70 a month (rounded up because some people get weirded out by certain numbers).
Now, take another investment we have that pays us $70 a year, which breaks down into $17.50 every quarter and further into $5.83 a month. Add that to the $6.70 a month from Coca-Cola stock, and that’s $12.53 a month. Those are just two companies in one of our household accounts, but imagine that eventually, those dividends add up to $100 a month, $500 a month, or even $1,000 a month.
That’s how dividend investing allows someone to buy back their time over time. Instead of exchanging physical labor, you are exchanging the labor of your capital for a check every quarter.
It won’t be easy, and it won’t happen overnight. This is why it’s important not to underestimate small sums in the beginning, because the compounding of each dividend per share adds up to the large sum that makes a difference.
For the first time in a very long time, I had a regular Coca-Cola after our friend bought one. We sat on a bench, sipped our fountain Colas, and chatted while people-watching. It was a memory I won’t forget, as she chowed down on her onion burgers and the teen and I ate our packed lunches of wontons, chips, and dip.
There was a heat advisory, and we all felt it, it’s why I decided to buy cold drinks even though we had waters. The Powerades were already gone. I also purchased some handcrafted root beer popcorn for the teen.
In the previous post, I mentioned we were only going to leave with a baker’s dozen of fair scones, but we went with half a dozen, saving $15. The popcorn cost $9.90, and together, the scones and popcorn still cost less than a baker’s dozen of scones would have.
However, where we went over budget was with the Coca-Colas. Still, we spent less than $40 at the fair and walked away happy. The teen couldn’t stop talking about how much fun he had and thanked me for the popcorn twice, which tells me how much he loved it.
As I always say, understand the cost of your investments and adjust your budget accordingly, while being flexible for experiences when it matters. It’s a hard balance, but one worth pursuing. Do it right, and you’ll be able to buy back time over the years through investing while creating experiences when it matters.
The Broke College Student 
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