Earl Crawley, fondly known as “Mr. Earl,” spent 44 years working as a parking lot attendant in Baltimore, earning no more than $12 an hour or $20,000 a year. Yet, against all odds, he built an investment portfolio worth $500,000.
Crawley’s extraordinary story caught the attention of the PBS show MoneyTrack back in 2007, where he shared his philosophy: “Stop working so hard and let the money work for you.”
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His secret? A simple but powerful strategy: Crawley invested in shares of dividend-paying companies, such as Coca-Cola. And rather than spending the dividends, he reinvested them, allowing his investments to grow over time.
“Instead of taking the dividends and parking it, let it reinvest itself and increase my shares. The more shares I had, the more dividends I had, eventually the more money I have down the road,” he explained.
Crawley was able to accomplish this feat thanks to his sharp listening skills, which he’d honed in childhood.
“In school I was considered a slow learner — dyslexic, it's called now. My true gift from God is my ability to listen, and that’s how I’m able to ask questions and use tips from the brokers, financial planners and bank customers I see every day,” he told Kiplinger .
Nickels and dimes
Without a high-paying job, Crawley couldn’t make large investments. So, he started small and stayed disciplined with his budgeting.
“I did it with good old-fashioned nickels and dimes. My mother taught me how to budget, which made me appreciate how a little money can grow,” he recounted.
Crawley explained that he also saved whatever he could from odd jobs, such as mowing lawns and washing windows — all on top of his day job.
Dividend investing has long been a strategy embraced by investors both large and small. Even legendary investor Warren Buffett recognizes its potential: Buffett’s company Berkshire Hathaway now collects over $700 million a year in dividends from Coca-Cola — one of Crawley’s favorite dividend-paying stocks.
And if the dividends are reinvested, they can harness the power of compounding, creating a snowball effect: each dividend payment buys more shares, which in turn produces even more dividends. Over time, this cycle can significantly amplify the growth of a portfolio, transforming small, consistent contributions into substantial wealth.
If picking individual stocks isn’t your preference, consider a simpler, tried-and-true strategy championed by Warren Buffett: investing in an S&P 500 index fund.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett famously stated. This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.
Buffett believes so strongly in this strategy that he has instructed 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after he dies.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time, and some apps even let you invest in an S&P 500 ETF with your spare change while automatically reinvesting dividends, making it easier than ever to build wealth.
Another path from rags to riches
Stocks aren’t the only asset class that has propelled everyday Americans to wealth — real estate has long been another powerful tool for building financial success.
Like dividend stocks, real estate offers opportunities to generate consistent cash flow through rental income while building equity over time through property appreciation.
It’s also a space where inspiring rags-to-riches stories emerge. Take real estate mogul and YouTube personality Ben Mallah, for example. Raised in the projects of Queens, New York, Mallah started investing in properties in “the tough neighborhoods of Oakland” that others avoided. Through decades of hard work, strategic refinancing, and leveraging the 1031 exchange, he built a real estate portfolio valued at $500 million.
While buying property today can seem daunting due to high prices and elevated interest rates, it’s important to remember that owning a property outright isn’t the only way to invest in real estate.
Crowdfunding platforms, for example, allow everyday investors to own shares in rental properties without the large down payments or management headaches traditionally associated with real estate ownership.
Alternatively, REITs provide another avenue for those looking to gain exposure to this market. If you are interested in residential real estate, you can look into companies like American Homes 4 Rent (AMH), which focus on single-family rental homes, or Equity Residential (EQR), which targets multifamily housing in high-demand urban areas.
If commercial real estate is more aligned with your goals, you might explore REITs like Realty Income (O), which is known for paying monthly dividends, or Prologis (PLD), a leader in industrial real estate and logistics facilities. REITs offer investors a way to access diverse real estate markets without the need for direct property ownership.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
