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The writer believes that some investors love to put their money into dividend stock, in order to secure their secondary income source. However, depending on what your age is, if you are still young and still working, why not choose to re-invest your dividend into the stock market, rather than using up all your dividend in your lifestyle. This way, it is easier to build up your capital, and hence easier to retire in your later stage of life. If you choose to spend all your dividend gain, you may need longer time to achieve financial freedom, because your capital is growing on a much slower state.

It is important to build up your capital in younger age, rather than spending all the money on luxuries. The quicker your capital is built, the quicker to achieve financial freedom. This is because even dividend stock will have capital gain, hence the more money you invested in it, the more capital and dividend gain you earned.

In short, if no emergency occurs that urgent money is required, it is the best to reinvest your dividend gain, and aiming to build up your capital for a better future.




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