Purchasing a vehicle can be exciting and stressful. I took it upon myself to find another truck but not as expensive as my last one. This forced me to plan out how long it would take to pay off the vehicle while saving for the house and my long term investments.
After thinking long and hard about which vehicle to purchase, I stumbled upon a recent article talking about index funds. Now, I'm a little familiar with index funds and what they do, but this article explained them in depth. I also found out I wasn't currently investing enough of my salary towards my retirement. This got me thinking about how I could add more to my retirement. My ultimate goal was to invest another 5% (currently invest 10%) of my salary towards a long term fund that will be safe. I found out if you invest before you reach 30 years old, you still have lots of time save $1,000,000 for retirement. So in order to reach these goals, I opened up an index fund with vanguard. Rather than me focusing on beating the market, I'm going to play the long game and save up properly. When your in the market for another vehicle or house, do some research and look at the potential growth or depreciation of these large purchases. This can save you thousands upon thousands of dollars in the future. I hope everyone had a great Thanksgiving.
You are absolutely correct: "It never seems too early or too late to focus on our financial future." I'm glad you are safe from the car accident- and this experience provided a revelation about your financial future. I would love for you to share that article you mention in your post.
ReplyDeleteGlad you weren't seriously hurt :-) Sounds like you are handling the aftermath with a clear head ^_^
ReplyDeleteIt's good to start investing at a young age, giving one a long term horizon and more opportunities to compound the earnings and/or bounce back from volatility. Instead of an index fund, perhaps a more aggressive fund? More risk may translate to more return!
I agree that it never seems too early, but I feel like I started too late with many things. Especially my finances! Sorry to hear about your accident, but glad to hear you are okay!
ReplyDeleteI am glad to here that you are not seriously hurt from the accident.Vanguard is a good company but make sure to check on their fees.
ReplyDeleteIts good to hear you didn't get seriously hurt. I haven't really thought too much in depth about my financial future. I should be looking into how I can be saving up long-term.
ReplyDeleteI'm sorry that your car was totaled but I'm happy that you didn't suffer any serious injuries. It's never too early to start thinking of your financial future. Hope it all works out for you.
ReplyDeleteHope you enjoyed your Thanksgiving as well. I do believe that a long-term portfolio is a must, and following an index is a smart investment. The long game will workout well, we all should prepare for our future better.
ReplyDeleteI'm so sorry about your accident. But its great that you're in the financial position to be able to replace your truck. Its great that you are already looking into your financial future!
ReplyDelete