Reinvesting your dividends might seem like a small move but over time it can make a massive difference in your investment growth 📈 Let me break it down. When a company pays you a dividend you usually receive cash. But with a Dividend Reinvestment Plan also known as DRIP you take that dividend and use it to buy more shares automatically 🔁 In this example the stock price is $95 and the quarterly dividend is $1.12. If you own 10 shares you get paid $11.20 in dividends. Instead of pocketing that money you use it to buy 0.118 additional shares. So now you own 10.118 shares. Next quarter your dividend payment will be slightly bigger because you now own more stock. This is how compounding begins working in your favor 🧠💸 Reinvesting dividends is one of the easiest ways to grow your portfolio without adding new money. It is passive it is automatic and it accelerates your wealth over time. Many investors use DRIP as part of their long term strategy because it builds momentum. You are literally putting your money to work for you and then reinvesting the profits so they work even harder 💪 If your goal is financial independence or early retirement using DRIP can help you get there faster. This strategy is especially powerful for dividend stocks and ETFs that pay consistent dividends. It might not feel like a big deal at first but give it a few years and you will see how much it adds up 🌱 Comment “Stocks” if you want a link to see my portfolio and how I use DRIP to build wealth automatically over time 📥 Do you currently reinvest your dividends or take the cash instead? I am curious to hear what your approach is and why 👇 Follow @MasteringWealth for more practical money content that helps you grow your income and invest smarter 💰 This content is for educational purposes only and is not financial advice. Always do your own research before making investment decisions.