Investing in a company could be quite lucrative, it is the practice where you can earn dividends that represent a distribution of corporate earnings to company shareholders and usually take place as cash or as stock.
If you hold a large portion of your Investment Portfolio in stocks, you will be unable to appreciate these capital gains until your shares are sold. However, if these stocks pay dividends, you will receive a cheque in the mail regularly for your share of the companies' profits.
A sound and happy financial situation depends on each person. There are many factors that influence this position such as, values, priorities and future goals. It depends on characteristics such as income, debt, net worth, savings, investment and lifestyle. A financial plan is in effect a composition of important financial decisions, making the right choices for your future financial position. Debt is the single biggest enemy of your financial freedom. It is a well-known fact that purchasing goods and services that could have been paid for with cash, on debt , costs you so much more than it would have if you had budgeted and saved towards it.