I watched the market crash and boom all within in a two-week period this month. I bought the dip and I was rewarded within days. I was then tempted to take money from another account to buy more, but I decided to remain disciplined and stick to my plan to build solid wealth over time.
Sometimes, I have to remind myself that lasting wealth will never be built quickly and a one-off in the market is not my goal. I got a win. And I will repeat the process of buying the dip and dollar-cost averaging into the market every week for many years to come.
In other news, I now have a HNW (High Net Worth) individual in my social circle. But what does it mean?
Thomas Corley, the author of Rich Habits: The Daily Success Habits of Wealthy Individuals, spent five years studying the activities of wealthy people. And it turns out that HNW individuals actually make a concerted effort to focus on certain relationships. The HNW individuals in Corley’s study made it a goal to have relationships with HNW individuals that they hoped to be like one day.
I often wondered when I would have my very own HNW person to discuss all things money with. Not because I was seeking one. It seemed to me the progress that I’m making financially has put me on track to be financially independent, which leads me to believe I would naturally begin to have friends that were wealthy because ultimately, birds of a feather flock together.
I’m not certain how things will progress having this HNW person in my life. I want to imagine that I’ll bypass several obstacles and gain unique investing insights that will propel me toward my financial goals several years earlier than I expected, but only time will tell. What I can say is that Mrs. HNW is extremely generous with her knowledge and wants everyone to win. I look forward to putting everything I learn from her into action.
Putting things we learn into action is a key element in building wealth and creating the great life you want. I’ve told friends, family and co-workers things over the years that they still haven’t implemented. But when they finally do put things into action, they always say, “Why did I wait so long?”
Are you putting off anything that would improve the quality and progress you’re making in life? Even if the change is small, I can say confidently that small progress everyday equals big results.
It is a priority for me to implement the things I learn (big or small) as quickly as possible. I don’t give myself a chance to forget or delay doing it because I hate regrets. If I can tweak the way I do an exercise and it has proven to be more effective, I make the change quickly. If I learn about something that could save me money, I’m doing it that day. My take-action attitude has made a huge difference in my life over the last three years.
When I look around, I don’t see the people that were once way ahead of me in career, salary and net worth. I’ve surpassed them and I continue to add distance. Hence, the importance of having HNW individuals in your life to inspire you to new levels.
If the information that you learn in a book or the great advice you learn from someone that is actually walking the walk will improve an area of your life just a little bit, I urge you to jump on it. And allow those small wins to compound in your life.
Okay, time for the net worth update:
October 2020 Net Worth Update
Cash Accounts
Checking $ 500.00 (no change)
Savings $5,000.00 (+$200)
Business $25,751.00 (+$2,339)
MM/E Fund $26,150.00 (+$479)
Taxable Investment Accounts
Ally Brokerage $21,328.00 (+1,065)
Investing MM $150.00 ( no change)
Vanguard $2,000.00 (+$72)
Acorns $1,525.00 (+$93)
Tax Advantage/Retirement
Bonds $19,516.00 (+$327)
SEP IRA $17,199.00 (+$180)
Traditional IRA $27,900.00 (+$77)
$147,019.00
Liabilities: Credit Cards: $0.00
- Credit Card: Paid in full every month
- Checking: No changes
- Savings (P to P): Decided to raise the amount in this account to $5,500 this is the extra padding I want to have since I’m leaving one of my jobs soon.
- SEP IRA: I plan to close this account and dump it into my IRA
- Traditional IRA: This account is doing well and will get a nice bump when the SEP IRA balance is deposited sometime in December.
- Business Account: I’ll be giving myself a bonus to go stock shopping in late November
- The E/Fund: Interest rates continue to drop but this account is a safety net and not about earnings.
- Ally (taxable): Will add (MMM and MCD) to the portfolio by year end.
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).
Originally posted 2020-11-26 11:23:53.
