There's a Fortune in Your Cupboard!

In my mid twenties, I was fortunate to have met a savvy retiree who was living comfortably on the interest from the savings she had amassed working as a paralegal. She never had a high salary. She had a high financial IQ. She told me there was a fortune hidden in my cupboards. She was right.

When most people think about investing , they think of complicated formulas, charts and a man with thick glasses moving their money around in mysterious formulaic ways. They pay him to watch their money. But lasting wealth comes from watching your own.

There's nothing wrong with the man or woman behind the desk calling themselves your financial adviser. But if you ask them to explain where your money is going and they say, "it's complicated". Get another adviser.

There's a fortune in your cupboard. What does that mean?

It means there are items most people buy regularly because they taste better, work better, or they just couldn't imagine living without them. They are often products your parents used and sometimes their parents before them. They are staples.

Often, these every day products are provided by companies known as blue chip stocks. They've been around for decades and their customers buy them every week at the grocery store.

So here's the deal. When learning how to invest, start simple. Buy products you know.

Look in your kitchen cabinets, wash room, and consider your local utility company. You know these products and companies. If anything changes, you will likely notice. Check their stock prices. Wait until it's on sale, then buy.

How do you learn how to buy stocks?

Start simple. Get children's book on how to invest in the stock market. Learn the terms. Get the basics. Don't complicate it for yourself. Think long term.

Over time, these basic products you use every day can make you a fortune. Slow and steady wins the race.

You can buy direct from a discount brokerage firm. Most provide online options. You can then buy and sell direct online and skip the major fees paid to a full service brokerage firm. As your fortune grows, you can then consider a full service brokerage firm if you like. But know them by name and make sure they know you.

Don't be a stranger. Visit your money. Find out with whom your money is associating. Don't be afraid to ask questions.

You can also contact the companies you select directly. Contact their shareholders department. They will send you information about the company's earnings, status etc so you can make an educated decision about whether or not you want to buy.

Ask if they offer a Dividend Reinvestment Program [D.R.I.P] If so, they will include the terms of which you can purchase stock direct from the company. All or a portion of your dividend earnings can be reinvested back into the company to buy additional stocks. This simple but methodical way of investing has made a lot of people very rich over time.

So the next time you make that grocery list, take a moment to notice which brands you buy regularly.

Notice which clothing brands you purchase most often for yourself and your family . Clothes, underwear, shoes all count. Look for consistencies.

Check your garage for the tools you use most often and who makes them. Last but not least, if there is a particular car model you purchase because that company makes reliable cars, by all means invest in them.

While major institutions drive the stock market, they are looking at every day people and studying their buying habits . That means you.

What you buy and recommend to your friends has made a lot of people very rich. It may as well be you.