Friday, 11 September 2015

An apple a day!

I'll be honest I never really understood the analogy of "an apple a day keeps the doctor away!" That is until recently but only with a small twist. Thanks to Joshua Sheets and his Radical Personal Finance podcast I now understand the phrase as the "doctor" as a "financial doctor". Mr. Sheats broadcasts a very detailed but very interesting daily podcast in which he wants, if you listen long enough, you to be able to pass financial planning certification exams.

It comes down to being financially savvy with your hard earned money. This is another way to be frugal and sweat the small stuff. This is my interpretation of his "love for avocados".

Like him I love the taste of fresh fruit and vegetables. Unlike him I do not live in a forgiving climate for many types of fruit. That being said I constantly have bananas, peaches and apples on my counter or in my fridge. Forget the bananas, lets concentrate on the apples.

Your Own Produce Section

Look through the flyer for your local grocer for apples. You can get 3lbs of apples for roughly $4.00 and the apples will last you probably just over a week if you eat 1 a day. Now let me introduce you to the oldest form of dividend investing. If you buy an apple tree, you can probably get a six foot tall sapling for under $40.00. Now this isn't an immediate payoff but no investment should be looked at as an immediate payoff.

For the next year you keep buying your bags of apples but when the next apple season rolls around you'll get your dividend payment and will not have to buy any apples for a while. Maybe you will get back $20.00 dollars worth of apples that first year or it may be as little as $8.00 or less but now you will have that tree for years and the payback each year will increase as the tree gets larger.

After five years you will have easily made your initial investment back plus and you will have a continuous supply of apples when they are in season. You will have fresh apples and will also be able to make apple sauce and some frozen desserts and meals that have apples in them. Maybe you will have enough that you might even be able to trade some for raspberry canes, a blueberry bush or a strawberry plant.

The cycle can continue and as you can see that small investment can yield a high return after several years. 

This is just one more way I sweat the small stuff.

Do you have a story you want to tell, leave me a comment, I would love to hear about it!

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