By: Dividend Sensei
In the past I’ve explained how the proper mindset is key to achieving long-term success. Specifically that means having the discipline to stick to a sound, time tested, long-term strategy. Well during one of my recent readings, (I spend 3 hours per day reading on a wide variety of subjects), I came across an article that made a strong argument for investing any bonuses you receive.
That certainly makes intuitive sense, since any unexpected windfall is something that, by definition, you can’t have budgeted for. That means that you don’t need it to pay bills and can, and should, invest it. This transforms an unexpected bit of luck into permanent, and exponentially growing wealth. And if you invest it in a diversified, high-yield retirement portfolio? Then it also becomes a reliable stream of passive income from which you can draw on later.