3 Things 5-12-25
- kdmann32
- 4 days ago
- 5 min read
Thing One
Got Habits?
An article published on gobankingrates.com included a list of the common habits of self-made millionaires. We’ve shared our favorites below:
They’re frugal. This doesn’t mean they subsist on beans and rice and never splurge, but they do avoid impulse purchases and they know how much they spend each month on the basics.
They invest in stocks. We’ve hit this point often in our newsletter and this article’s author agrees that “…investing in stocks is the surest way to generate wealth in the long term.”
They earn compound interest instead of paying it. The author sums up this point by saying, “…The whole point of investing, after all, is to earn compound interest to become wealthy over time, which is a futile effort if the bank is collecting it from you in the form of revolving debt…”
They buy (and hold) their cars. The financial planner interviewed for the article said that “…most of his wealthy clients buy their cars instead of leasing them and retain ownership for as long as practically possible…” and he added that, “…fewer than a quarter buy new cars and opt for used vehicles instead…”
They’re persistent. On this point it was noted that, “…The majority of self-made millionaires in his study didn’t tally that second comma until they were between the ages of 46 and 60.”
They Squeeze Every Last Dime Out of Their Jobs. Here it is pointed out that self-made take advantage of all employer benefits that are offered, which means things like, “…getting the highest employer match possible on your retirement plan, paying less for employer-based life and disability insurance and taking advantage of HSAs, low-cost employer legal services and employee stock purchase plans.”
They Live Well. On this final point, the author noted that people in this cohort, “…do the things that most of us know we should be doing but often don’t, including:
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Thing One
Got Habits?
An article published on gobankingrates.com included a list of the common habits of self-made millionaires. We’ve shared our favorites below:
They’re frugal. This doesn’t mean they subsist on beans and rice and never splurge, but they do avoid impulse purchases and they know how much they spend each month on the basics.
They invest in stocks. We’ve hit this point often in our newsletter and this article’s author agrees that “…investing in stocks is the surest way to generate wealth in the long term.”
They earn compound interest instead of paying it. The author sums up this point by saying, “…The whole point of investing, after all, is to earn compound interest to become wealthy over time, which is a futile effort if the bank is collecting it from you in the form of revolving debt…”
They buy (and hold) their cars. The financial planner interviewed for the article said that “…most of his wealthy clients buy their cars instead of leasing them and retain ownership for as long as practically possible…” and he added that, “…fewer than a quarter buy new cars and opt for used vehicles instead…”
They’re persistent. On this point it was noted that, “…The majority of self-made millionaires in his study didn’t tally that second comma until they were between the ages of 46 and 60.”
They Squeeze Every Last Dime Out of Their Jobs. Here it is pointed out that self-made take advantage of all employer benefits that are offered, which means things like, “…getting the highest employer match possible on your retirement plan, paying less for employer-based life and disability insurance and taking advantage of HSAs, low-cost employer legal services and employee stock purchase plans.”
They Live Well. On this final point, the author noted that people in this cohort, “…do the things that most of us know we should be doing but often don’t, including:
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Thing Two
It's A Scary Time In The Stock Market. Or is it?
Below is an excerpt of a blog post from 2016 written by a savvy investor and friend. Please note that the DIJA was 17,865 at the time and it is almost double that today - in less that 7 years: "...Stock market prices are high, and the pundits are saying it's time for the market to fall. But then again, maybe prices will continue to rise for a while and then drop.Or they may fall today, next week, next month, or next year --- by a lot. And when that happens, it can be scary until fear subsides and calm returns --- which it always does --- but who knows when? Not I, that's for sure.As a result, many individuals are getting scared about falling share prices, and the so-called experts are adding to the FUD factor, aka Fear, Uncertainty, and Doubt.Is it time to sell and head for the sidelines until the dust settles? Or should we stay the course and hang in there until the all-clear signal arrives?In other words, what's an individual investor in it for the long haul supposed to do? Well, this individual investor is doing nothing other than what he ordinarily does. If I decide to sell something, which I do from time to time, it will be so I am in position to buy something else that is deemed to be a better investment.But staying diversified is always important so I won't load up on any single stock or sector. I will play put-and-take, and let the short-term chips fall where they may. After all, one thing I know for sure is that nobody knows for sure what will happen to stock prices in the near term. I sure don't.And three other things I know are that (1) over time stock prices increase, (2) dividends received on blue-chip stocks now and for the foreseeable future will yield more than interest paid on bonds (or gold and CDs), and (3) that stock prices inevitably will fall from time to time, and sometimes hard.The simple fact is that people who sell during times like this tend to stay away from buying again until prices have increased to heights greater than current levels. That is the classic playbook definition of what not to do as a long-term oriented individual investor --- sell low and buy high..."
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Thing Three
Just A Thought
"The first step towards getting somewhere is to decide you’re not going to stay where you are.”— J.P. Morgan
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