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Dividend.com Weekend Edition – Applying Your Knowledge

In most cases, we will never change who we truly are. However, we do have the power change the way we gather facts about things important to us, and how we act upon that information.

For investors, perhaps the most important factor is finding reliable sources of information that help you formulate your investing strategy. The mainstream business media is loaded with all sorts of "gurus" - from those who advise on how the markets will perform in the next 5 hours, to those who specialize in specific industries or sectors. And then you have the economists, whose aim is to predict how consumers will be affected from the recent monetary twists and turns.

If you wind up married to the wrong guru for your overall investment strategy, i.e. one who doesn't fit your personal objectives, you'll undoubtedly be disappointed by your results. The same concept applies to life in general. Surround yourself with people who spew shallow opinions with little relevant facts to back up their take, and sooner or later you will likely become a member of this traveling band of misguided observers.

Our Dividend.com users are a very hands-on bunch, as we found out from a recent survey we did on the website. We asked how many of our subscribers handle their own investments, without the aid of an investment advisor or full-service broker. An overwhelming 80.5% indicated they did not use an advisor to help guide their investments.

Our stance has always been that most people are fully able to make their own investment decisions, especially when they use the simple dividend investing strategy we advocate here at Dividend.com. Of course, that doesn't mean you should never consider speaking with a financial planner or estate attorney during times when their particular expertise can be of great use!

You'd be surprised at how people well people can do for themselves when they put the right strategy and knowledge into practice. As I always say, it's an investor's job to become smarter each and every day. We may never change our own little quirks (Lord knows I have a few!), but we can easily alter the ways we gather and apply knowledge in our daily lives.

Kids and Money

When I was growing up, my parents rarely spoke to me about money manners. My dad would talk about the day at his barber shop, but we never got into details on how much money he made, or how the bills got paid. I had no clue what our status was financially until my dad bought his first house at age 36 - that was when we felt like we'd "made it." I certainly don't want my own kids to be in the dark for most of their early lives about money, as I was.

So, where do we begin? First and foremost, we need to teach about budgeting their funds so they can afford to go out and buy things they want with their birthday/holiday/allowance money - and not reach into parents' pockets when their well runs dry. Once we establish a bailout fund for our kids (or grandkids), the lesson about budgeting is lost. Stick to your guns on this point!

Analyzing what kids' funds are being used for is a great lesson as well. That way, they'll learn to avoid impulse buys, which are all too common when children get into the "gotta have it this minute" mode.

Appreciating the value of money is a subject that will be continuously taught in my household as my kids progress through different stages of their early years. Hopefully by the time they are of working age, earning some coin for the first time, they won't be so quick to make those funds vanish just as quickly as they're made.

Thank you for sharing part of your weekend with me, and please be sure to pass this post on to anyone you think we can get inspired and educated about money, building wealth, and using common sense to do so.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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