May 19, 2015 – the Dow was at 18,312.39 and the 20,000 milestone didn’t appear out of the question.
Since then, the market plummeted, came back, and then dropped off the table again. The reasons?
- The price of oil
- China’s sluggish economy
- and the Fed’s rate increase
But quite honestly, it doesn’t even matter. My advice to you is to ignore all of those doom and gloom situations. Your best chance for wealth is now!
Why Your Best Chance For Wealth Is Now
Ever hear the expression, “Make hay while the sun’s shining“? Most people aren’t realizing it today, but the sun is shining on you RIGHT NOW. It’s time to make some hay baby! Don’t believe me? Here are four reasons why your best chance for wealth is now.
The Down Stock Market
I’ve been contributing to my 401k since I was 25 years old. With the rising stock market and a healthy company match, my balance quickly shot up to $45,000 – that was on May 19, 2015. Since then, my balance hasn’t moved an inch…even though I’m still contributing and continue to get the match.
Do you know what most people would do at this point? They’d say, “I’m not earning any money in the stock market. In fact, I’m losing! It’d be better for me to save up my cash in a savings account!” So, that’s exactly what they do. They pull their money out of the market, pay the tax AND the penalty, and then they plunk their earnings into a very safe, low-yield account, where their money earns practically nothing (but they feel good about it because they know they won’t lose any more money here).
Do you know what I’m thinking at this point? “This is awesome! I keep buying up more shares at a discounted price! When the market returns to it’s old high, I’m going to have thousands more than what I had before!”
The finance professionals call this dollar cost averaging, and the phenomenon is modeled quite well below. At this point in time (Feb. 2016), the stock market is down vs. the “starting point” when it was up at around $18,000 – so we’re at about the $8.5 mark on the chart below.
If you’ve been contributing consistently like I have for the past year, you’re about ready to make a pretty sweet return when the market jumps back to it’s original value (and beyond)! FYI, this is how so many millionaires came into the picture in 2010 and 2011.
The price of gas in my hometown right now is roughly $1.50 a gallon. The last time gas was this low, I was still waiting for my voice to change!
To the average person, this is a green light scenario for an SUV or truck purchase. After all, gas is cheap so they can now afford to drive the big vehicle of their dreams. Unfortunately, here’s what typically happens…
- They buy a brand new truck and are all smiles. Gas is cheap and life couldn’t be better.
- The new payment puts them in a slight bind, but it’s still okay because the price of gas is still down
- That payment is starting to weigh on them and the price of gas starts going back up
- Three years down the road – they still have the payment and the price of gas climbs back to $3.50 a gallon
- And, their net worth never grew because that new truck lost half it’s value (just like all new vehicles do in their first 3-4 years)
Your best chance for wealth is now. Don’t get suckered into a new SUV or truck purchase like the average Joe. Keep driving your gas sipper and invest the fuel savings in the market, a side business, or an alternative investment. Use this time of good fortune to jump start your net worth!
Ever since 2009, the unemployment rate has been dropping and people have been able to find decent jobs again. Chances are, you have a pretty decent job yourself. If your household is fully employed and you’re earning more than the yearly average of $53,000, then your best chance for wealth is now. Realize that the sun is shining on you – save some of that money and stash it away! After all, there is always the chance of some rainy weather ahead.
Earning Extra Income Has Never Been Easier
If we were living in the 1950’s, what would you have to do to earn some extra income? You’d probably have to deliver newspapers, sell some farm fresh eggs, or start a hair salon in your parlor at home. Every option would be inconvenient, would be difficult to start up, and you’d probably get paid next to nothing for it.
What can you do to earn extra income today? The options are endless! You could (click the links for added info):
- become a virtual assistant
- start a blog
- make money with social media
- buy cheap locally and sell on eBay
- become an Uber driver
…the possibilities are endless! You can do any of the above things without breaking a sweat, and the income could actually replace your day job if you wanted it to!
Take Advantage of Today
Your best chance for wealth is now. Seriously. Stocks are cheap, gas is cheap, jobs are plentiful, and earning an extra income has never been easier!
Don’t fall into the trap of the typical sucker that you work with. They likely took money out of their 401k, drive a brand new SUV, and think that they’re the smartest person on earth because of the money they “saved” by not being in the market.
In reality, they don’t have a clue. Their short term “success” will hold them back tremendously. By sticking out the market, you’ll end up with far more money, and by steering clear of that shiny ride, you’ll also have more money in your savings account. It might seem like a huge sacrifice today, but you’ll be way farther ahead 10 years from now.
Your best chance for wealth is now. What are you doing about it?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.