Mr. ThreeYear and I have made plenty of mistakes during our financial journey, but one thing we did right was to start investing early. That boon of investing money early has given us a much higher net worth than we would have otherwise had.
The Early Years
I began to learn about investing in college. Unfortunately, I hadn’t yet learned about IRAs and didn’t save any of my job earnings. But, I did begin to learn about investing in individual stocks. This was around the time that Scottrade was founded, and my dad began to make individual stock investments. I did a very small amount of research and began to invest some of the money I had in individual stocks, which were mainly blue chips, or well-established companies that paid a higher dividend each year, like Coca-Cola, Johnson & Johnson, and energy companies. I began my portfolio with about $4000 and slowly added to it during college. I did minimal trading and practiced the buy and hold strategy. Continue reading “The Boon of Investing Early”
A friend asked the other day if I recommended putting money into a certificate of deposit. We talked a bit about her goals and it struck me that with money, as in life, one should have a very clear idea of the purpose of your dollars before you make decisions about where to park them.
Mr. ThreeYear and I follow a simple financial plan with our money. It hasn’t been easy to simplify our savings and investments; we’ve had to eschew certain new accounts, consolidate investments, and roll over old 401Ks. The simpler things are, though, the less likely it is that I mess something up. The less likely I forget to make a contribution or pay a credit card bill. Money can be really complicated so in our experience, keeping things simple is clearer and easier.
We believe that our money goals should be equally simple, but unfortunately, sometimes they’re not. Sometimes we’re trying to accomplish multiple money goals at once and things get muddled.
It’s highly effective, in my opinion, to periodically take a step back and think about what it is you’re trying to do with your various dollars. What is the purpose of a particular pile of money? Then you can make better choices about where to put it.
Here are the questions we ask ourselves: Continue reading “Where Should You Put Your Money?”