Happy Halloween to all you boys and ghouls out there!

Sorry, couldn’t help myself with the Halloween humor. I stole that line straight from the crypt keeper from Tales from the Crypt. You know because the good ones borrow and the great ones steal. haha

Enough with my All Hallows’ Eve humor. We are here to talk about something other than scary costumes and bopping for apples.

Something that is scarier than Friday the 13th.

Falling stocks!

It’s scary enough to make even chicken little faint.

Before, you read any further, know that this post is not for the faint of heart.

Money is still a mystery to many folks. It’s so mysterious, that I don’t even think Scooby and the gang could solve it.

As the 2026 midterm elections are coming to a rapid end, the market has dropped faster than a new Drake album.

As reported by NBC news, During the severe market sell-off on Friday, October 30, 2026, technology stocks suffered a massive rout, erasing more than $1 trillion in market value in a single afternoon. The decline was triggered by intensifying investor anxiety over whether the hundreds of billions of dollars tech giants are pouring into artificial intelligence (AI) will generate sufficient near-term profits.

Tech companies are spending billions on capital expenditures (capex) and that has people spooked! As the only people to reap any benefits from AI have been the Magnificent Seven of stocks.

The Magnificent Seven (or “Mag 7”) is a group of seven dominant U.S. mega-cap technology and growth companies:

Alphabet Inc. (GOOGL / GOOG) – Parent company of Google

Amazon.com Inc. (AMZN) – one of the biggest online marketplaces in the world.

Apple Inc. (AAPL) – think iTunes and of course the iPhone.

Meta Platforms Inc. (META) – Parent company of Facebook and Instagram

Microsoft Corp. (MSFT) – maker of Windows and Xbox.

Nvidia Corp. (NVDA) – the world’s most valuable company with a $5 trillion market cap.

The lose of a trillion dollars in value has the market feeling like this haunted house pictured below.

Market Influence: These seven companies wield massive influence over major U.S. stock indexes like the S&P 500 and Nasdaq Composite, accounting for roughly one-third of the S&P 500’s total market capitalization.

And it is rightfully so that people are scared. Major shifts in currency movement and events are nothing new, but can be how fortunes evaporate.

Let us not forget Blockbuster.

What is Blockbuster, you ask?

For those of you born after 1999, let me remind you.

Blockbuster Video

Blockbuster LLC was a dominant American home video and game rental corporation that reached its peak of over 9,000 stores worldwide before declaring bankruptcy and shutting down its corporate footprint.

The Last one standing (last remaining store)

Bend, Oregon: Only one Blockbuster store remains open today, operated as an independent franchise in Bend, Oregon. It functions as both a working video rental shop and a pop-culture museum.

Rise and Fall

How Blockbuster went from a $3 billion dollar company to bankruptcy

Founding & Peak: Founded on October 19, 1985, in Dallas, Texas, the chain grew rapidly through franchising and acquisitions (including turning down a chance to buy Netflix for $50 million in 2000).

Per Business Insider, it was once valued as a $3 billion company, in just one year, Blockbuster earned $800 million in late fees alone.

However, as the old sayings go nothing lasts forever and what a difference a decade makes.

But fast-forward a decade, and Blockbuster ceased to exist, having filed for bankruptcy with over $900 million in debt. So, what happened?

Bankruptcy & Closure: Crippled by the rise of digital streaming and online video, the company filed for bankruptcy in 2010, and the last corporate-owned stores closed by January 12, 2014. Dish Network acquired the remaining assets in 2011.

Basically, it comes down to not innovating and keeping with the dinosaurs. They went extent.

Blockbuster did not keep up with the times.

Either you innovate or die.

The phrase “innovate or die” is a famous business maxim attributed to management consultant and author Peter Drucker, who popularized ideas around corporate evolution and change in his 1985 book Innovation and Entrepreneurship (writing that “the enterprise that does not innovate ages and declines”).

Robert Iger: Former CEO of the Walt Disney Company, who wrote in The Ride of a Lifetime: “Innovate or die, and there’s no innovation if you operate out of fear of the new or untested.”

Blockbuster failed and Netflix succeeded because Blockbuster relied on an outdated brick-and-mortar store model burdened by late fees, whereas Netflix continuously innovated around customer convenience, shifting from DVD-by-mail to digital streaming.

Who doesn’t know the saying Netflix and Chill.

However, no one under the age of 25 remembers the saying let’s make it a Blockbuster night.

Let’s dig a little deeper.

Why Blockbuster Failed

Heavy Reliance on Late Fees: Blockbuster earned massive revenue from penalizing customers who returned tapes or DVDs late, which created severe customer dissatisfaction.

Brick-and-Mortar Overhead: Operating thousands of physical stores was expensive, hard to manage for quality control, and forced customers to drive to a location.

Dismissal of Netflix: In 2000, Blockbuster executives passed on a chance to buy Netflix for $50 million, laughing off the service as a small niche business.

Crushing Debt and Slow Adaptation: By the time Blockbuster tried to respond with online rentals and store-hybrid programs, it was weighed down by roughly a billion dollars in debt. It filed for bankruptcy in 2010.

And what happened to that company Netflix? It turned into a juggernaut.

Netflix grew into a massive global entertainment giant.

It rakes in billions in revenue yearly and is now worth over $250 billion.

Why Netflix Succeeded

Subscription Model Without Late Fees: Netflix launched with a DVD-by-mail subscription system that eliminated annoying late fees and offered greater movie variety.

Embracing Data and Personalization: Netflix used online watch histories and user ratings to recommend movies tailored to individual tastes. Personalization beats unfamiliarity. Emily Post would be so proud.

Early Pivot to Streaming: Recognizing the growth of broadband internet, Netflix transitioned to digital streaming in 2007, allowing instant access from home.

Willingness to Disrupt Itself: Instead of clinging to a dying format, Netflix continuously reinvented its business model—moving from physical mail to streaming, and eventually into award-winning original content.

The AI Boom is another disruptor.

Similar to the invention of the lightbulb, telephone and internet.

Disruptions changes things. And disruptors have made fortunes rise and fall.

Getting back to the title of this post, what to do when your stocks turn back into a pumpkin.

I obviously borrowed and ripped that title off from a scene in Disney’s Cinderella (1950).

To turn into a pumpkin is a humorous idiom that means it is time to go to bed, go home, or stop an activity because it is getting late.

The Cinderella Fairy Tale: The phrase comes from the story of Cinderella, whose magical coach and gown turn back into ordinary items (including a pumpkin) at midnight when the spell wears off.

Therefore, in my POV, the market appears to be in correction territory. Similar to how Cinderella turns back into her real and ordinary self without all the bells and whistles.

It was reported by NBC news, that the sell-off pushed the Nasdaq 100 close to what is known as “correction territory,” which is a decline of 10% or more from an index’s last record high.

Why this is scary?

The stock market takes an average of about 2 years to recover from a full bear market (a drop of 20% or more), though recovery times range dramatically from just a few months to several years depending on the cause.

Let’s dig a little deeper.

Corrections vs. Crashes

Market Corrections (10% to 20% drop): These happen roughly once a year and typically take about 3 to 8 months to recover.

Bear Markets / Crashes (20% or greater drop): These occur roughly once every 6 years and average 2 years and 3 months to reach a full recovery.

Examples of Past Recoveries

COVID-19 Crash (2020): A sharp 34% drop followed by a record-fast recovery of about 4 to 6 months. This is what every investor dreams of.

Global Financial Crisis (2008): A severe 49% decline that took about 4 to 5.5 years to fully recover.

Dot-Com Bubble / Great Recession Era: Some prolonged downturns stretched over 5 to 7 years.

The Great Depression (1929): An 82% drop that took over 15 years to reach breakeven for investors who stayed in the market.

Taking a deeper dive into the stock market crash of 1929, It took the Dow Jones Industrial Average 25 years to return to its pre-crash high from September 1929, finally recovering on November 23, 1954.

That is a lifetime.

Some folks got lucky and cashed out before the crash. However, unless you have a crystal ball, there is no way you are going to know when a crash of that magnitude is going to come.

So what can us mere mortals do?

We can plan ahead for the future. Since we know corrections and crashes happen, we can take some steps to prepare ourselves when the rain comes. Do not ever look for anyone to save you. You must save yourselves.

Let us not forget this quote by author Mark Twain, “A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”

Meaning

Fair-Weather Support: Financial institutions are eager to give you money or credit when you are already doing well and do not really need it.

Disappearing Help: The moment you run into financial trouble or a storm hits, they pull back their support or demand repayment immediately.

Knowing this handy knowledge, I always refer back to the book I read years ago called The Automatic Millionaire by David Bach.

He stated in his book that the future will always be more expensive as prices go up along with inflation. Meaning investing is a way to beat inflation.

The “Latte Factor”—a concept popularized by financial author David Bach—describes how small, routine daily expenses can grow into massive sums of wealth over time if invested instead.

It may sound crazy but, a $5 a day habit could cost you a million bucks!

To see how your regular daily habit impacts your future net worth, use the interactive calculator below. By default, it assumes a $5 daily coffee habit ($150 per month) invested over 40 years at an 10-12% annual compound return.

The Cost of Daily Habits Over Time

To understand the compounding breakdown, here is what a $5 daily habit looks like when converted to a monthly investment ($150/month) at an 8% expected market return:

• 1 Year: $1,800 saved | ~$1,880 total value with compound interest
• 10 Years: $18,000 saved | ~$27,300 total value with compound interest
• 20 Years: $36,000 saved | ~$86,000 total value with compound interest
• 30 Years: $54,000 saved | ~$212,000+ total value with compound interest

Those sips on your pumpkin spice lattes can be very expensive.

Beyond the Coffee Cup ☕

The Latte Factor isn’t just about coffee. You can apply this calculation to any small, recurring leak in your budget:

• Subscription Creep: Unused streaming or app memberships ($15–$50/month).
• Dining Out: Buying lunch daily instead of meal prepping ($10–$15/day).
• Delivery Fees: Frequent food delivery service fees and tips ($20–$40/week)

It all adds up my friend.

I recently went to the store and saw a pack of cigarettes cost $10-$13. That means a pack a day habit would could cost $300-$390 a month.

How many people have you heard say they cannot afford to retire and put away a measly 450 bucks a month, while chain smoking and dragging on a cig?

David Bach’s compound interest chart in The Automatic Millionaire shows how small, consistent daily or annual savings grow exponentially over time when invested at an assumed 10% to 12% annual return.

The chart in his book famously highlights the power of starting early versus starting later, proving that early savers can contribute far less total money and still end up with more at retirement.

The Classic Comparison: Start Early vs. Start Late

The Early Starter (Ages 19 to 26):

• You save $2,000 per year for just 8 years ($16,000 total invested).
• You stop investing at age 26, but leave the money invested to grow until age 65.
• Total at age 65: Over $941,000 to $1.35 million+ (depending on exact compounding frequency and return assumptions).

The Late Starter (Ages 27 to 65):

• You save $2,000 per year for 39 straight years ($78,000 total invested) starting at age 27.
• Total at age 65: Roughly $802,000 to $85,000+ (depending on how the chart scales).
• The Result: The early starter invested far less cash out of pocket, yet ends up with more money because compound interest had decades longer to work.

Key Takeaways from the Chart

• Pay Yourself First: Automate a fixed portion of your income straight into a retirement or investment account (like a 401(k) or IRA) before you ever see or spend the cash.

The Latte Factor: Cutting or redirecting small, daily waste (like a $5 daily habit) into investments yields massive long-term wealth.

Time Beats Amount: Time in the market matters more than the sheer volume of cash you scrape together later in life.

Paying yourself first is a must.

Think of it like this. How about you put away the equivalent of one hour of your pay rate per week. At $30 an hour, that would be $30 x 52 weeks = $1,560 per year. At a 11 percent interest rate compounded annually, you would have $1 million in 40 years.

If you cannot save one hour per day for yourself, then you need to make some lifestyle adjustments.

The goal is to get in the habit of saving.

Time in the market always beats timing the market.

If you need more money, may I suggest to negotiate everything like your life depends on it.

Especially, a starting salary. That is when an employer wants you. People are more willing to paly ball when they want you batting for their team.

If you can negotiate a higher pay, why not see if you can put the difference in the first offer and the last offer in investments.

For those that may not know her, a blogger created a website called Her First 100k. She talks about how she had invested $100k in her retirement accounts by the age of 25. She then launched her blog into a full scale financial services business and became a millionaire at 27.

All of that would not have been possible with loads of debt and without saving.

Let us also be reminded of what Warren Buffet says causes financial disaster: liquor and leverage.

The warning really came from his second in command.

Charlie Munger famously said: “Smart men go broke three ways: liquor, ladies, and leverage.

That is code for: bad habits, divorce, and debt.

Again, let’s dig a little deeper.

The Quote and Its Meaning

The Core Quote: Longtime Berkshire Hathaway vice chairman Charlie Munger used the phrase as a blunt warning about how intelligence alone cannot save someone from ruin.

Warren Buffett’s Addendum: Warren Buffett later joked in a CNBC Interview that Munger added the first two items simply because they started with the letter “L”—and that leverage (excessive debt or borrowing) is the real danger that causes financial destruction.

Why Leverage Matters: Debt turns normal market volatility or a bad week into a permanent, irreversible loss of capital.

It is incredibly hard to pay off debt because you are overspending and over leveraged.

The best way to keep yourslef out of harms way is to do the following:

• Keep a 3 – 6 month emergency savings in cash.
• Have a cash cushion large enough to weather financial storms such as a stock market crash. Keeping funds in brokerage and savings accounts will allow you to weather the storm as it typically can take 9 months to find a new job after a layoff or up to two years for a market correction.
• Build up $100,000 somewhere. This can be in your 401k.

Charlie Munger also famously stated that reaching your first $100,000 is the hardest part of building wealth, remarking in the late 1990s: “The first $100,000 is a b***, but you gotta do it.”

There are no shortcuts. There is no free lunch.

Like Britney Spears says, you better work B***h!

Charlie Munger Said, ‘Find A Way To Get Your Hands On $100,000‘ Even If It Means Walking Everywhere — The Magic Number If You Want To Be Rich

He didn’t believe in shortcuts, but he did believe in thresholds.

And if you ever asked him how to get rich, he had a number ready: $100,000. Hit that, he said, and you’ll have the momentum to keep going. Fail to hit it, and you’ll spin your wheels forever.

Why $100,000?

The power of compounding.

This amount invested over 30 years at a 10 percent return can turn into a million. That is no joke and is some serious coin.

Many people will look at you crazy and say that’s too long.

Put it like this, let’s say you hit $1 million at age 55.

Do you see any 55 year old’s complaining about being millionaires?

I rest my case.

About the Author

Miriam started Greenbacks Magnet in 2016 to keep a scorecard of her goal of $1M in investable assets. Armed with a Master in Management (MiM) and a calculator, she teaches readers how to achieve financial independence while also helping them learn how to smell the roses along the way. The palpable response she got from sharing her personal finance goal in a public speaking course at Georgetown University encouraged her to share her story and teach finance on her website. She invests in AI companies as artificial intelligence is the new iPhone of the moment as she likes to invest in companies that are disruptive