It’s hard to save money. Rising housing cost and expenses take away more than half of your check. Especially if you live alone. But wait…there’s more…
Look at those shoes 👠👠👟👟 And that new Apple watch ⌚
It’s happy hour 🍹
I’m too tired to cook 🙍
We can charge that trip and pay later (ignoring all the interest charges when you know you can’t pay it off)
Hey, I’m all about living a full life. You can do whatever you want BUT you should do it after you tax yourself. I shoot for a 20% tax on myself that goes towards savings and investments. I know some of you might be saying you can’t do it. That you have kids and bills to pay. But what if the government put a 20% tax on you? It would suck but you would have to pay it. Try to think of it that way (thank you Tony Robbins). You’ll have a cushion for emergencies and your future self will thank you for it. Automate and work with what you have. Or at least, make sure you’re putting something away.
(allocating more into your 401K, HSA and IRA will lower your taxable income. Means – giving less to the IRS. Keep more of your money. Most of us aren’t in the 1% bracket where we get great tax breaks)
I recently realized two things with Amazon. Continue reading “Tax Yourself”
What is a stock market correction?
A 10% drop in stocks from their peak. Since Jan. 26, the S.&P. 500 has fallen 10.16 percent. (I currently have 90% in the S.&P. 500 for one of my investment accounts…OUCH!!!)
Who do corrections affect most?
Short term traders and those who heavily leveraged their account with the use of margin (an example would be a day trader).
Thankfully not me 🙂
I’m a long-term investor so this isn’t freaking me out. I know that corrections are an inevitable part of stock ownership. And so are peaks $$$
What should you do?
That is up to you. Me? I am going to reassess my investments. Maybe change my percentages up a little. Possibly buy more stocks since they are relatively cheaper than they were a few months ago. BUT I WILL NOT BECOME JUST A CONSUMER AGAIN.
If you’re retired or going to soon, here is a great article to read from the Huffington Post.
And again, this is about the long term. The stock market, as measured by the S&P 500 Index, has had an average annual return of 10.31 percent from 1970 to 2016. In dollar terms, if you had invested $10,000 in the S&P 500 in 1970, by the end of 2016, your investment would have grown to $1,005,588. The worst one-year return for the stock market was in 2008, when it dropped 37 percent.
Don’t freak out if you are. Do your due diligence. History will show you the stock market trend.