Budgeting from Nothing – If you two are looking for ways to save money in your budget, please check out this post. I think Stephanie’s approach can help you develop a new budget from the ground u without feeling like you’re depriving yourselves.
He does a fantastic job of laying out how rebounds have happened and will more than likely continue to happen (though no guarantees because no one can predict the market).
He also gave an noted:
Imagine two people who each invested $1,000 in the S&P 500 at the beginning of 1980. The first one buys once and never sells. The second one is slightly more cautious: He sells any time the market loses 5 percent in a week, and buys back in once it rebounds 3 percent from wherever it bottoms out.
At the end of last week, the first investor’s holdings would be worth $18,635. The second investor would have just $10,613. (For simplicity’s sake, I’m ignoring dividends, fees, taxes and other factors.)
Which investor do you want to be?
Ignoring the Noise
Finding the meaningful signals can be extremely difficult with all the noise out there. Media in all its forms can make us feel like we have to do SOMETHING now.
I wrote awhile back there are some ways you can cut back on the noise:
Remind yourself of your plan. Have your reasons why you chose this accessible so you can refer to it when you’re tempted to chase a ‘hot tip’.
Check the data yourself. News pieces tend to focus on the narrative or story, but that doesn’t give the whole picture.
Be selective with your sources. Choose your investing sources widely and ask yourself, what is the credibility of this site or show? What is their goal and how do they make money?
Focus on Fundamentals
As simple as it may be tell you to continue investing, I know it can be difficult.
Though I’ve seen how disastrous emotional investing decisions can be to a portfolio, even I can be tugged into thinking that my money may be safer elsewhere.
Since we’re prone to having bad investing habits, one of the best defense (and easiest to execute) is to have your plan set up and your contributions automated.
If you’re already investing, check to see if you can go ahead and get your contributions automated if you have’t already.
If you haven’t started investing, go ahead now. Yes, now. There are plenty of options out there. Personally we use Vanguard and Betterment for our IRAs.
Setting up our accounts was easy and the service has been wonderful with both companies.