As a few of you know, I have been getting pretty involved in the stock market as of the last several months. It’s been a volatile market this year. Currently, I am quite pleased with how I am doing. As long as I am not losing money in a not so great market then I am fairly pleased. I am up a decent amount on a few of my stocks. Of course, you don’t really make or lose anything until you sell them (based on what I have “sold,” I am only slightly above even). It has been a nice few days as of late (though they say that Sept is one of the worst month for stocks).
On another note, my wife and I have been looking into a new vehicle. I decided that (as of right now) that I can only buy a vehicle (or another expensive “wants” (not needs) based on the gains I make from the stock market. I can multiple the (sold) gains by two in order to base the vehicle price I can purchase. For example, lets say I make 5k in the stock market this year. I could then purchase a “want” for 10K (not nearly enough to buy the vehicle I would want). If I make 25k in profits from the stock market over the next couple years (should I be so extremely lucky) I could spend up to $50k (of course the only thing I could want at that price would be a vehicle). I am thinking very optimistic in these examples and realize things could go in the downward direction.
I am not rich yet (based on what I consider rich), but it is true that the rich get richer by building more assets than liabilities. A vehicle is not an asset. It may add to your net worth, but it is one that depreciates not appreciates (like most homes do).
Anyway, just some ideas I was thinking about. Who knows how soon I will change my mind. I guess it depends how the well the stock market does over the next year or so and in that case, disregard this post!
If I’m losing money, it’s probably not a good time to buy more liabilities…
