I check my finances every couple of weeks or so to see how I'm doing. I've been doing it for the past 15 months or so, since I started working full time. So far, so good. Well, with the exception of this week.
For the first time since I've done this biweekly check, I've lost money since the previous entry. This isn't because of frivolous spending; it's my investments. I lost quite a bit in the last few days because of the market "correction" following the big news about Lehman Brothers and Merrill Lynch.
The good news is I made a good portion of it back today with the stock rally. And the other thing: I don't really look at it as a loss. Sure, my portfolio's worth (I only invest in mutual funds; I'm no expert) may take a hit, but I'm not planning on selling this stuff for decades. I use the mentality that it's a discounted buying price. The longer it stays cheaper now, the more I can make in the future. It was bad timing to get into the market in the spring and summer of 2007, right before this whole crisis, but in the long run I think I'll be fine.
So, if you're a young investor like me, keep it safe and just don't panic. There's a big bright side to all of this.
For the first time since I've done this biweekly check, I've lost money since the previous entry. This isn't because of frivolous spending; it's my investments. I lost quite a bit in the last few days because of the market "correction" following the big news about Lehman Brothers and Merrill Lynch.
The good news is I made a good portion of it back today with the stock rally. And the other thing: I don't really look at it as a loss. Sure, my portfolio's worth (I only invest in mutual funds; I'm no expert) may take a hit, but I'm not planning on selling this stuff for decades. I use the mentality that it's a discounted buying price. The longer it stays cheaper now, the more I can make in the future. It was bad timing to get into the market in the spring and summer of 2007, right before this whole crisis, but in the long run I think I'll be fine.
So, if you're a young investor like me, keep it safe and just don't panic. There's a big bright side to all of this.
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