I spent the last week of April expecting a big shift in the stock market but it never happened. There were a few down days but the market mostly trended upward. Ironically, great earnings sent great companies (Microsoft and Apple) down in price, which seemed to even confuse the “experts.”
The cryptocurrency market also, made a lot of noise in April, especially Dogecoin. I read about a newly minted 33-year-old, Dogecoin millionaire who turned $180,000 into a million and only it took 69 days. You can read all about it here. I also did more research of my own on crypto and realized Dogecoin is still not in my future. However, I will continue to drop small, consistent amounts of money into Ethereum (ETH) and Cardano (ADA). My plan is to build and hold and for a long time. That said, if I suddenly find a high six-figure dollar amount in my wallet one day, no need to guess, I’m taking the profit immediately.
“Reading is essential for those who seek to rise above the ordinary.” – Jim Rohn
I recently sat down for my daily reading session, which lasts for an hour in the morning and an hour before going to bed. My process is to read all things financial in the morning and novels at night. Reading is a great habit and gives you an immediate edge in life, especially since most adults ages 20-57 only read eight minutes a day or less. It’s also no surprise to me that reading is the number one habit of self-made millionaires. I digress. My point is that during one of my morning reads, I came across an article on Jose Conseco, former New York Yankee, Rookie of the Year, Most Valuable Player and six-time All-Star. He is now homeless and living in a friend’s garage. It only took two months of missing the rent for the 56-year-old former baseball great to find himself homeless. In case you’re wondering, Conseco earned more than $55 million during his major league career.
All The Wrong Stats
Career numbers for Jose Conseco: 462 HR (37th), .266 BA, 1407 RBI (76th). Those are great stats. Conseco is still filling up the stat boxes. However, there’s nothing good about these statistics: Latinos make up only 18 percent of the population but more than 22 percent of the homeless population. Men are two times more likely to experience homelessness than women. Men make up 70 percent of the homeless population. Homelessness is expected to double, if not triple, in most major cities by 2030. A homeless person age 50 and over is classified as “geriatric.” The majority of the growth in the homeless population will be comprised of individuals who are at least 50 years of age. And finally, more than 67% of the population in this country will experience poverty at some point their lives.
While it may be easy to wag your finger at the former millionaire, superstar athlete, homelessness can happen to anyone. More than 63% of the U.S. population lives paycheck to paycheck and that includes people making six-figures and even seven-figures. If you spend every dime every time you get paid, you may find yourself having a lot more in common with Jose Conseco than you ever imagined.
My advice is to make sure you’re not on your way to being a part of the worst stats this country has to offer. If you’re headed there, you can turn things around. For most people that means having the equivalent of one paycheck in the bank. That’s right, if you save the equivalent of one paycheck in a high-yield savings account, you’ll be doing better than 63% of the population. You will no longer be living paycheck to paycheck! Having just one paycheck saved will make room for you to start paying off credit card debt, help prevent future credit card debt and put you on the path to building serious wealth. If you’re just starting out and need more direction here’s a great road map.
If you just need a little inspiration, check out my net worth update below. You can also go back to the very beginning and see where I started.
Time for my net worth update:
Checking $ 500.00 (no change)
Savings $ 5, 756.00 (+$106)
Business $ 31,099.00 (+$866)
MM/E Fund $ 30,028.00 (+$607)
Taxable Investment Accounts
Ally Brokerage $ 35,050.00 (+$2,837)
Investing MM $ 400.00 (+$300)
Vanguard $ 3,540.00 (+$277)
Acorns $ 2,498.00 (+$168)
SEP IRA $14,800.00 (+1024)
Bonds $ 20,900.00 (+$200)
Traditional IRA $ 48,025.00 (+$2,209)
Liabilities: Credit Cards: $0.00
- Credit Card: I had a large expense that I managed to pay in-full last month, reminding me that I hate credit card debt.
- Checking: No changes here
- Savings (P to P): This account is climbing and will be used if there is a dip in the market.
- Traditional IRA: I think this account lacks a total market ETF. I have a total market mutual fund that pays bi-annually but I can earn more with an ETF that pays quarterly.
- Business Account: I save for my taxes in a separate account. Whenever I receive W-9 income, I immediately transfer 40% into that account, which I don’t include in my net worth. This year, things worked out perfectly. The money I put aside covered all of my tax obligations and there was no need to tap my business account
- The E/Fund: Working on interest income in the crypto space and should have some momentum by July
- Ally (taxable): This account exceeded my expectations last month. I didn’t expect to have a $35,000 balance until June. Since the bar is raised, I’ll be trying to hit the $37,000 mark by June.
Remember, it is a fight to build wealth no matter where you are in the process. Everything around us conspires to take money out of our hands. But you must fight the good fight. Continue to save, invest, and grow your net worth even when it seems impossible. Save your pennies (copper) until they become dollars (cotton).