What is this strange new world called financial freedom? The more I watched her show, the more I wanted it.
Essentially, do I take the blue pill or the red pill?
As the title of this post implies, I took the red pill.
Financial Independence. I wanted the ability to do what I wanted, whenever I wanted without being tied down to a 9-to-5. But how would I do it? I needed a plan.
Much like the Scooby gang needed a Scooby trap, I was going to have to plan my way out of the rat race and into financial freedom. A financial road map. That’s what I needed.
It was like what Gail Vaz-Oxlade of Til Debt Do Us Part would always say in the intro of her show, I needed to go from red to black. My investment picture of over more than a decade is listed below.
Here’s a sneak peak behind Greenbacks Magnet financial magic curtain. Up first, from red. Then fade to black. Or in my blogs case, green.
Financial chaos bleeds. Here’s the red.
Oct, 2023: -$16,000 (market + house value ↓ )
Sep, 2022: -$22,000 (market crash + loss of 2nd income)
Feb, 2020: -$19,000 (market crash; where the bleeding really starts)
May, 2019: -$10,000 (market crash)
Dec, 2018: -$14,000 (market crash)
Oct, 2018: -$10,000 (market crash)
Feb 2018: -$4,900 (market crash)
Jan, 2016: -$4,000 (market crash)
Aug, 2015: -$5,000 (market crash)
Jun, 2013: -$4,000 (market crash)
Sept, 2012: -$14,000 (market crash + cash crash + got a new home!)
Feb, 2010 -$1,000 (market crash + got a new job!)
May 2009: -$3,000 (market crash + laid off)
Financial triage has prevailed. Here’s the black.
Nov, 2023: +$27,000(market rebound + 2nd job + house value ⬆)
Oct, 2022: +$17,000 (market up + mad hustlin’ 2nd job)
Mar, 2022: +18,000 (market up + bought condo)
May, 2020: +27,000 (market rebound; the green starts rollin’ in)
Jun, 2019: +$9,800 (market rebound)
Jan, 2019: +$10,000 (market rebound)
Aug, 2018: +$6,300 (market up)
Feb, 2017: +3,900 (market rebound)
Mar, 2016: +$5,000 (market rebound + tax refund)
Oct, 2015: +$6,000 (market rebound)
Feb, 2015: +3,300 (market up)
Aug, 2014: +$2,000 (market up)
Jun, 2010: : +$4,000 (market rebound)
May 2008: +$2,000 (market up)
Dec, 2006: +$1,000 (got a new job!)
First, I got rid of any payday loans and made a promise to myself to not ever sign up for them or any car title loans. Done.
Second, I needed tp pay off my car loan and stay away from car payments. So I paid off my SUV and freed up that monthly payment of $448.65 in 2009. I have not had a car payment since. Done.
I needed to get rid of the $20,000 personal loan I took out for $333 monthly. Done.
I needed to increase my income. So I finished my bachelor’s and got a higher paying job. Done.
I needed a goal to aim for. I decided upon one short-term and one long-term and one sensational dream goal.
Short-term I needed a $10,000 savings emergency fund. Done.
Long-term I wanted to retire a multi-millionaire. So I needed at least $2 million. Sensational dream goal is $10 million. I decided to break this all up into smaller goals. Therefore, I would start by having investable assets of $100,000. Done.
Then $250,000. Done.
Next was $300,000. Done.
Although, having over a quarter of a million-dollars is an incredible feat in itself, I had no time to rest on my laurels. I must keep going.
Then I started to press on toward my next goal of $500,000. After that is accomplished, I will set my sights on $750,000. The next leg in the journey would be $1 million.
At that point, I would be a 401k millionaire.
The next goal is to double my money. I would get to my next several money milestones by increasing my 401k contributions by 1-2% every year.
No vacations unless they were paid for with cash.
I also got a second job to bring in more income.
I signed up for credit card and checking account bonus offers that brought in thousands.
I invested my old car payments in index funds like the VTSAX and individual stocks like Apple, Google and Amazon.
And every time I got paid I would put a small portion in my Roth IRA.
I also make sure to keep track of my investments every month.
I’ll breakdown more of my behavior on how I went from $0 to over $300,000 in my next post.
“Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish.” —John Quincy Adams
Stocks are down and housing prices are up. We have seen a shift in way consumers are spending. Mortgages are in. High-priced stocks are out.
Although the stock market has had an astounding run since the Pandemic began in March 2020, it is the acquisition of housing has most Americans chomping at the bit.
The US has minted more than half the world’s new millionaires over the last few years as investments in equities and tech stocks propelled assets higher. Real estate, is generally considered to be a more stable investment than volatile stocks or fluctuation cryptocurrencies and is a tangible asset. Real estate investing has also created 90% of the world’s millionaires.
However, not too far behind is stocks as nearly 70% of their wealth gains over the past year and a half have come from market gains. The wealthiest 1% know this. That is why they own 89% of all US stocks.
Those at the top of the economic food chain know the wealth comes from the owning of assets. The top 1% own a lot of stock my friends. And those at the bottom of the economic pyramid own so little. Meaning they are not keeping up with the rise of inflation and their purchasing power is steadily decreasing.
The dollar in their pocket is worth less now than it was yesterday. This means you are able to afford less at the grocery market and to purchase other consumer goods. For example, the cost of a pound of brisket was listed as $9 a pound. My sister sent me a screenshot of a 9.67 pound of brisket in her grocery store. The cost: $87.
I am sure somewhere my grandmother is looking down upon us and thinking that the family may very well have to turn vegetarian or severely cut back on meat consumption. I know grandma, I know.
According to Pew Research, the Consumer Price Index, the most widely followed inflation gauge, increased 7.0% from December 2020 to December 2021 – its highest rate in nearly 40 years. Families are spending $30 more per week at the local grocery store or farmer’s market. An increase in prices also mean less that is being invested and saved.
The price of lumber has increased by 288% making the cost of homes go up by an average of $36,000. The average new car price is now $47,000. As of 2021, the average monthly car payment in the US is $575 for new vehicles and $430 for used vehicles.
When I put these numbers in my compound interest calculator, it informs me that if I can invest either one of these amounts monthly for 30 years, I can become a millionaire. Therefore, I have come to the conclusion that new cars are wealth stealers and must be avoided at all costs. Rejecting new cars has made me richer. Things have gotten so far out of whack for the average household that people have begun to put groceries and gas on credit! This an absolute no-no. Building wealth requires cash.
Even if using OPM – other people’s money – you still have to bring some cash to the table to invest in index funds or put a down payment on a home. You must have capital to work with if you want to build wealth.
And companies are all too happy to part you from this wealth whether you have some or not. Case in point, I recently looked up the Kelley Blue Book value of my car. I just wanted to know what it was worth. Little did I know that this information gets sent over to local car dealerships who within mere seconds of me inquiring started sending me a barrage of solicitations for my business to put me into a new car.
I know very well that the average car payment is over $500.
These salespeople are looking to increase their monthly sales quota. I continue to get offers to get me into a new car by email, phone and text over the next week.
At this point, my Spider-sense is tingling. Why are folks still calling me after a week? I get it. Business is all about sales. They make fat commissions of us folks once we sign on the dotted line.
I prefer to keep my money where it is; in my pocket.
Just for kicks, I decide to look up the cost of food, housing and cars from the last 30 years.
After doing all of this research, I have come to the conclusion that the future is going to be expensive.
Therefore, it is unwise to use credit for present consumption with yet unearned future dollars.
We can prepare for the increases in living expenses by investing our dollars today. Don’t believe me. Just take a look at all the charts I provide in this article.
Numbers don’t lie.
The constant outflow of discretionary dollars on basic cost of living has consistently gone up. The cost of homes, education, cars, gas, and food are going through the roof!
I truly feel that incomes have not kept pace with the cost of homes and education. Equity may have increased, but so has the cost of homes.
In 1976, the cost of Harvard University tuition was $3,740. In 2019, it was $54,002. How can they justify it? It is almost like that owl in the how do we get to the center of a Tootsie Pop commercial: the world may never know.
This is a mystery that I do not even think Scooby-Doo and the gang could solve no matter how many Scooby snacks Velma has in her back pocket.
I do not say these things to scare you. I am merely your jedi money guide on this journey. I want you to invest.
Own your primary residence and buy those index funds.
As the stock market goes down, buy the dip. Buy low. Get those high returns to sell high.
I did this back in 2013 when I bought shares of Apple (AAPL) for $258. The stock went on to split twice. Once for a 4-for-1 basis on August 28, 2020, a 7-for-1 basis on June 9, 2014. Prior to each split the stock was trading well over $500. It was $656 in 2014 and $656 in 2020.
It went from a billion-dollar company to a $2 trillion-dollar one. At the time of this writing, it is hovering around a $3 trillion-dollar market cap. Off a small one-time investment, I made tens of thousands of dollars.
And that small home that was purchased years ago. It has increased in value over $100k. The equity has gone up by over $100,000 and counting. That is why we invest my friends. So we can keep earning money in our sleep. Our money can work without taking vacations or sick leave. We can’t.
So here is your homework for this evening. I want you to find a home you would like to buy and a stock you would like to purchase. Figure out how much of a down payment or initial but in you will need. Divide this amount by how long you think it will take you to save up these funds.
For example, the VTSAX has a minimum initial investment of $3k. You decide you want to but this investment in a year. Therefore, you divide $3,000/12 months = $250. That is how much you must save every month to but this index fund. Doing the math will allow you to slowly build your dreams.
Let us not forget the wisdom of one of the greatest investors of all time: Warren Buffet. He reminded us that American living standards advanced seven fold in the 1900s, while the Dow rose from 66 to over 11,000. The Dow now stands at 34,934.27 today in 2022. “The model has worked well for America. If you look at all these disparate businesses, such as if you looked at the Dow Jones as a single entity… (though it rotated)… but going from 66 to 11,000 is doing something right. Owning a group of good business isn’t a bad plan.” Yes, owning is good for your pocketbook in the long run. Now I want you to go out and get some assets.
But before you do here is some more Buffet wisdom, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” And lastly, “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch.” Patience is key. It will take you to the promised land of financial independence.
When I read the tea leaves on the stock market, I see it rising to 100,000.
Why you ask? A little research.
The Dow Jones industrial average index (DJIA) opened in 2018 just shy of 25,000 on Jan. 2, and a little over two weeks later it already had topped 26,000. The DJIA would need to rise by 20% to hit 30,000. We did that. As reported by Kigplinger, the DJIA has enjoyed an annualized increase of 7.33% since 1950, based on Yahoo Finance historical data. Therefore, the DJIA will double every 10 years (9.82 years, to be exact). If we continue at our 1950-2017 pace, the DJIA index will double, or hit 50,000, in 10 years.
If a $100,000 in the market at a 10% return will net you $1,000,000 in 30 years, then you can become a multi-millionaire with help of the stock market. And that excludes housing equity. So get out there and start putting your dollars to work.
Millionaires know that you get rich by saving $20 bucks at a time.
People paying it forward by becoming part of an organization as Denzel Washington and Steve McQueen did with their efforts with the Boys and Girls Club.
*Just FYI: The actor Steve McQueen grew up poor. The Boys and Girls Club gave him a clean and safe place to be in his youth. He paid it forward after he become a famous actor by asking movie studios to give him thousands of white t-shirts, socks, and personal hygiene products as part of his compensation package for starring in their films. He secretly turned around and donated all this material to the Boys and Girls Club to give out to the young men there. Just melts your heart doesn’t it.
Steve McQueen also known as “The King of Cool”
How the Teenage Mutant Ninja Turtles always looked out for the little guy.
TMNT film circa 1990
The friendship between Shaggy and Scooby-Doo. Those two they just warm my heart.
Some of my favorite singers that have turned their talent into success are Whitney Houston, Pat Benatar and Toni Braxton.
One of the things I remember Ms. Braxton saying, “music is not about you just saying what you think, but how you make people feel.” Her music and voice have always made me feel good.
Seeing her up on that stage performing recently at the American Music Awards, reminded me of all the reasons I liked her; she has a gift for making you feel good with the words she sings that transcends whatever hard times you are going through in that moment. She makes you feel happy.
Toni Braxton performs onstage during the 2019 American Music Awards at Microsoft Theater on November 24, 2019, in Los Angeles, California. (Kevin Winter/Getty Images for dcp)
And speaking of people that inspire you with their words, I would like to introduce you today to someone who has not only done that for me, but for millions of people around the world through his writing on personal finance. The one and only Mr. JD Roth.
GBM is the place where we like to get down and dirty into the math behind building wealth, but we keep the jokes clean. Our jokes here are like a Hallmark card, GBM cares enough to send the very best! Even my tweets are called Lipstick Confessions!!! haha 💋Smooches
Below is just a taste of what GBM has to offer. This blog ages like fine wine; it only gets better with time. No topic is off limits!!! Not even French Fries!!
All the reasons I want you to pursue financial indepence.
1. Freedom 2-100 see number one
That is the answer always, in the illustrious words of #buzzlightyear To infinity and beyond. 😂
I’m like Space Ghost Coast to Coast. Booking celebrity guests for my audiences reading and fiscally literate pleasure.
Fun Fact: The original pilot of Space Ghost C2C was produced in a closet, and the guest was Denzel Washington (second mention in this post cause Denzel is just everywhere). It was green-lit as a series on the Cartoon Network in 1994 and went on to huge success.
Therefore, if you are looking to start a podcast, let this be inspiration to know it is okay to start it on a shoestring budget and in your closet.
Let’s get down to the interview.
Topic du jour: The tortoise wins the get rich race every time. Who is the man behind the tortoise shell?
Subject: Men who talk money. How to Get Rich Slow?
GRS JD Roth: YES, I would be happy to do your interview.
Ladies and Gentlemen, please put your hands together for Mister JD Roth!!! The founder of Get Rich Slowly.
ALLOW ME TO INTRODUCE MYSELF
GBM Miriam: It was great meeting JD Roth of Get Rich Slowly at FinCon 18 in Orlando. I had seen his picture on the blog-sphere so many times that I knew who he was on sight. I tried to keep a calm and cool composure, but on the inside I was screaming, “IT’S JD ROTH!!!!!” Over and over in my head.
Imagine my surprise when I got to ride shotgun with him on our way to a restaurant for a fellow bloggers birthday.
You can check out more of this story on my post about my very first FinCon called FinCon The Recap from your Friendly Neighborhood Greenbacks MagnetPart I and Part II.
We are in the car with Liz of Chief Mom Officer, Military Dollar, and Erin of Reaching for FI. In a car full of women, he was totally cool driving while listening to Taylor Swift. Yes, I found out that JD is a T. Swift fan. I am too. It’s like john jacob jingleheimer schmidt up in here!!!
Here is proof here!! I just so happen to think Taylor Swift is pretty awesome too! 😉 Great minds think alike. I literally just posted tweets on Taylor Swift and Lizzo last week. 😂👍
Just sent @BitchesGetRich a 2000-word email (yes, for real) on why I love both @Lizzo and @taylorswift13. Not much personal finance in it, I'm afraid, but a lot of personal conviction. Because these two women are awesome!
My dream concert is a Lizzo/Taylor Swift collaboration.
I figured out how to control my spending. If I carry the world's tiniest purse, like #LizzoAtAMAs, I could save a fortune. There's no way I could carry a wallet or credit cards in that 🤣 #TuesdayThoughtspic.twitter.com/ReXIL7u9kA
This is how I felt getting to interview JD. Over the moon and on top of the world. After three years of blogging, I made it. I’m still here. Anything is possible if you work hard enough for it. 😉So Grateful.
JD STARTS A BLOG ABOUT GETTING RICH
1. What prompted you to start a blog about money? How much makes you feel rich?Would you say $500k, $1M, $2M, or more?
I started Get Rich Slowly for three reasons. First, I wanted to document my own journey out of debt. Second, I thought maybe I could help other people learn to manage money as I improved my own financial skills. Finally, I hoped maybe I could make a few hundred bucks per month to supplement my income.
I had NO idea that starting Get Rich Slowly would change the trajectory of my life, financial and otherwise. It wasn’t even something I could have conceived at the time. Yet it changed everything.
How much makes me feel rich? That’s a great question. It doesn’t take much. I grew up poor. My family lived in a run-down trailer house in rural Oregon. My father was often out of work. Sometimes we had to take assistance from our church in order to get by. Today, I have far more money than my parents ever did. I feel very rich. But I don’t know what dollar amount leads to that…
GBM Miriam: Well ok. Thank you for your honesty. It is always appreciated. I fell into learning about money by accident. I was at my boyfriend’s place when I saw a Kiplinger magazine lying around. I just so happened to pick it up…
2. Any favorite finance books? How come?
I’ve read and enjoyed many finance books, but my favorite books about money usually aren’t actually books about money. What I mean is that often the books that I believe will most help people with their finances aren’t financial books. They’re only tangentially related to finances.
For instance, I think The Seven Habits of Highly Successful People is probably one of the most helpful book anyone can read if they’re struggling to improve their finances. The ideas and philosophy it conveys are so valuable in developing a successful financial mindset.
GBM Miriam: One of my top favorites is The Millionaire Next Door. That and the one you named are some good reading. 👍
3. What are you reading right now? What’s on your night stand?
Haha. I always have several books going at once. Right now, I’m reading:
* Wake Up and Live! by Dorothea Brande
* House of Suns by Alistair Reynolds
* Y: The Last Man by Brian K. Vaughan
* Deep Work by Cal Newport
This “many books at once” habit kind of goes against the whole Deep Work philosophy…
4. One thing people may not know about you?
When I left for college in 1987, I thought I was going to be a religion major. My aim was to get a religion degree, then become a Christian missionary. I thought I’d ultimately end up as a church pastor.
GBM Miriam: I did see you mention something about that on your blog. I put a link to that story in your response for readers to be transported there faster than Marty hitting 88 mph by clicking on college in 1987.
5. What’s in your wallet? How did you start building wealth?
It contains my debit card, my business credit card, my personal credit card, my Apple card, maybe $40 cash, and my insurance info (health and vehicle). That’s it.
I started building wealth through a two-pronged attack. First, I reduced how much I was spending. Second, I worked to build my income. Basically, I did my best to work both sides of the wealth equation (income and spending) in an attempt to grow my saving rate as high as possible.
Well said. So that’s what I did. Unlike that episode of King Meets Queens, when Carrie buys thousands of dollars worth of expensive clothes, keeps the tags on them to return them for a refund (get this because she could afford them *ahem* $2,000 Chanel suits) and said this to her husband…
If this sounds like you, please stop reading THIS and go read the Get Rich Slowly archives right now! If you want to get rich, cut the excuses and get fiscally educated!!!
If you are truly fiscally clumsy, then try the lazy method of investing. I would use Swensen’s model that he crafted for Yale University. With over $27 billion dollars under management, the Yale endowment is the second largest college endowment in the world (Harvard is #1). Just watch the video. Now you and Rory Gilmore will have something in common.
And if this is too much, just park your investments into a total stock market fund like the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) or Vanguard Total Stock Market ETF (VTI).
BONUS ROUND
Bonus Questions (pick any of the questions from the top or below that you want to answer)
6. Any life or money lessons from a favorite movie or TV show you would like to share?
I’m partial to Mr. Roger’s philosophy of loving others and encouraging others to love. He believed in accepting people for who they were, regardless of who they were. I subscribe to that ideal too.
GBM Miriam: Good stuff. I ❤ Mr. Rogers I wanted to take a ride on that train soooo bad! It looked like so much fun.
7. If you found a lottery ticket that ends up winning $1.5 million. What would you do?
I would buy new cars for me and my girlfriend. I’d get her a Tesla Model 3. I’d buy myself a Mini Cooper — the electric model, if it ever gets released. I’d stick the rest of the money in the bank.
GBM Miriam: A mini Cooper eh? I can dig it.
But that Tesla looks sexy.
And love those falcon wing doors.
Car Magazine UK Tesla photo
8. Who is your favorite X-men, Justice League, Avengers or comic book character? Why?
I’ve always been partial to nerds from the Marvel universe, characters like Cyclops from the X-Men or Mr. Fantastic from the Fantastic Four.
GBM Miriam: You are probably wondering why I asked this question. Beside being a huge cartoon and Mavel fan, I actually named this blog after a Marvel comic book character; Magneto. 😉
Just FYI: We skipped a few numbers and moved on to question 11.
11. If both a taxi and a limo were priced the exact same, which one would you choose?
Neither. I would probably walk, if I could.
GBM Miriam: Yeah, that’s me. I love to walk. I’m like Elizabeth Bennett in Jane Austen’s Pride and Prejudice.
12. What song or songs best describes your work ethic?
“Don’t Worry, Be Happy” 🙂
13. What would you do if you just inherited a pizzeria from your uncle?
I would sell it, if it were profitable. Hell, I’d sell it even if it weren’t profitable. That sounds like too much work!
GBM Miriam: You may be right. I know it’s just a cartoon but they worked the crap out of Doyle in that pizza place in Galaxy High!! 🤣
14. What was your best MacGyver moment?
This question is so NOT me. I’m not a MacGyver type. That said, my best MacGyver moment was probably installing a new tape deck in the 1993 Toyota pickup I bought last January. Admittedly, I had instructions for this project, but it was still pretty MacGyver-y for me. Now I can listen to cassette tapes as my dog and I cruise around Portland. 😉
15. If I gave you $40,000 to start a business, what would you start?
I know the answer to this! I’d start a blog. In fact, I’ve spent a similar amount to launch blogs in the past — and they’ve become businesses.
GBM Miriam: Why am I not surprised. 😆 I love blogging too.
How I feel about blogging: “Tonight, darling, we are going to right a lot of wrongs. And we are going to wrong some rights. The first shall be last; the last shall be first; the meek shall do some earth-inheriting.” -Margo Roth Spiegelman, Paper Towns by John Green
Cara Delevingne as Margo Roth Spiegelman in Paper Towns
New at the GRS blog: A look at how who we are (and who we want to be) shapes our financial lives: https://t.co/1efsBn9clQ — This is my first longer piece since deciding to NOT publish so often. It was fun to write.
16. If you had $2,000, how would you double it in 24 hours?
Hm. I’m not sure. There’s no reliable way to do this, of course. My inclination would be to pick a game of pure chance, such as roulette, then to make a single bet that would either double the money or lose it in one go. Using that roulette example, if I bet all $2000 on, say, even numbers or odd numbers, I’d have about a 48% chance of doubling my money and a 52% chance of losing it all.
Really, though, there’s no sure way to do this.
GBM Miriam: That’s JD. He always gives it t you straight and keeps it 💯just how we like it.
For example, he just put this out there for our fiscal viewing. Check out his post on Our first annual family meeting. Bringing people and finances together. As a financial blogger, that just melts my heart ❤right there.
THE END
GBM Miriam: Thank you JD!!! It was an absolute dream come true and a pleasure to have you stop by Greenbacks Magnet.
It was my honor to be your host this evening. See you at FinCon 2020. The year of perfect vision!!! Until we meet again!!! I bid you farewell.
Want more fiscal nuggets of wisdom, from the JD Roth?
Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we’ve got 24 hours each. -Christopher Rice
It feels like it was just yesterday when the Great Recession hit. The stock market was crashing more than a 10-year-old computer’s hard drive. Folks were in a panic. I even overheard someone saying to a friend that she lost 50 percent of their portfolio! Yikes! I was aghast. In the illustrious words of Velma from Scooby Doo, “Jinkies!”
In speaking with a financial aid officer, they stated while working at a university in DC that parents and students were flooding his office stating they had just lost their job and it was one after the other. It was a revolving door of people just coming to his door and saying they had been give the pink slip. Layoffs were everywhere you turned.
During 2008-2009, you could not turn on the news without hearing that unemployment levels were on the rise the likes of which they had never seen. Food banks, free pantries, churches, and non-profits were flooded with requests for help. The need was so great that some soup kitchens and church pantries were running of of food within days.
After the dust settled, things started to look up. We had hit rock bottom. Now it was time for things to go back up. The bear market went into hibernation and the bull market came out in full force. The market was seeing the red cape and came barreling after it. Stock prices were on the rise. No one could have foresaw what was on the horizon, but for those with cash it was a golden opportunity to invest.
Some experts seem as if they have a crystal ball. People like Warren Buffet, the world’s greatest investor, sits on tons of cash. As of this writing, Buffet’s Berkshire Hathaway is sitting on a record $100 billion in cash, as he feels stocks are just too high to buy. Buffet’s partner, Charlie Munger, believes in being patient and getting a bargain price on stocks. How could he possibly know this will happen? According to Munger, if you are patient, you will see that 2-3 times every 90 to 100 years the market crashes and if you are prepared, you can capitalize on that.
According to Investopdia contributor James Chen:
“The longest-running bull market in history celebrated its 10-year anniversary on Sat., March 9, 2019. It all started from the post-crisis low of March 9, 2009. The S&P 500’s (SPX) closing price on that fateful day in early 2009 was precisely 676.53. As of the market close on Wed., Oct. 9, 2019, the S&P 500 settled at 2,919.40. That represents around a 330% rise in a 10-year period. Not bad for a large-cap stock index.”
If you read my post Stock Splits and Misfits, then you know how right Mr. Munger is indeed. I have actually purchased B class shares (NYSE:BRK.B) of Berkshire. I decided to buy some shares to celebrate my birthday years back. After the stock split, not only did the price drop, but I also owned more shares. I went from owning 5 shares to 35 overnight! No matter what the market cycle, I invest. I do so for the long term. I am not a fair-weather investor. And neither should you be.
Everything I have ever witnessed anyone ever have came for years of dedication, sacrifice, and hard work. If you want to know something about anything, then merely pick a book on the subject. Want a woman’s perspective on life in the 1800’s, then read Jane Austen’s Sense and Sensibility. If you want to be more knowledgeable about the world around you, might I suggest the reading list I published in my post Money Advice From Gossip Girl. But if you want to know more about investing, I say read the Berkshire Hathaway letter to shareholders that is published annually on their website.
Whatever it is, if you want something, then go after it with zeal. If you want something, make a plan and then put action behind your words. I knew that I wanted $100,000 in the stock market. I worked toward investing a minimum of 15 percent into my stock portfolio. Those things took time to do. At one point, I decided to move $26,000 from other index funds into just one: Vanguard’s 500 index fund. I wanted to have $100,000 working for me in just one fund as opposed to several different ones. Once I did that, then it was time to make sure my asset allocation was spread in different sectors that way if one sector tanked, the others ones would keep me afloat. So far, so good.
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