Stick-to-it-ism

Well, my investments, like many folks, have nose-dived a bit since the start of the month. While the S&P 500, and most of my index funds have stayed even, my dividend portfolios are down about 2% so far. Remember, this is my “fun money” accounts where I tried to purchase bonds, stocks and REITs to generate maximum dividends. It seems like I have been shoveling money into these all year, only to have the market eat the money up by the time the month ends.

Now granted, 50% of these accounts are in bonds, and the rising interest rate environment has not done me a lot of favors here. In addition, the rising interest rates and the retail meltdown have punished REITs in a major way (or at least some REITs). Still, even though I have some explanation, it still makes me unhappy.

Yet I intend to keep with the plan I laid out, investing in dividend paying assets, and using my monthly funds and quarterly dividends to reinvest in the assets necessary to reach a 50% bonds/25% REITs/25% dividend stocks setup.

That is why I chose the title, stick-to-it-ism. There are always times in your push towards financial independence when your direction appears to be going nowhere (or potentially backward). Folks in 2007 and 2008 were double-paying their mortgage down on their house, only to see its value crash down and lose all the value that they had paid into it. Many home prices are only now getting back to where they were, ten years later. Some aren’t even there.

Still, by paying down the mortgage, getting rid of any remaining debt, and continuing to save, most FIRE folks find themselves in better shape now than they were before the crash nine years ago. That is because the concepts and principles we follow are timeless, and in the long run, they are bound to place us in a better position. We just have to have the “stick-to-it attitude” that lets us keep working on it, even during the times it doesn’t seem to help.

So how about you? What have you done to “stay on target” as you move towards independence?

 

Mr. 39 months

3 thoughts on “Stick-to-it-ism”

  1. You have to have the drive and ambition to keep your goals in focus. FIRE is one where you really have to focus if you want to succeed. Never lose sight of the freedom that FIRE gives you. It is unbeatable.

    1. I agree.

      Interesting website. Just read the first entry, but plan on reading more and adding you to my blogroll!

  2. @kevin, there is ‘no right or wrong way’ to make it to FI, there are many roads as well as many obstacles. Being mortgage free is a huge step.

    On investing, even the S&P can be a crap shoot unless one is able to hedge their position.

    Good luck in your journey to the 39 months countdown

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