I’m starting to learn something about myself with how I manage my personal finances, I thought I was risk on, but the more my net worth grows the more I realize I ain’t tryna lose my SHIT!!! Hahah
For real though, idk if anyone else is like this, i’m 32, no kids, no wife, no one depending on me (though I try to live like I got a whole wife and kids lolol) - meaning I just try to save a lot and be extremely frugal and responsible.
With that said, i’m sure everyone would be like brooo high growth index funds yada yada and they’re probably right, maybe even most certainly right.
But the more I see my money grow, the more conservative i’m becoming.
Personally i’d rather have a guaranteed $3-4k “bonus” a year (pre-tax) via bonds or a HYSA on $100k than be in this (entirely in this, I mean) speculative AI bubble crazy valuation market that is current.
I certainly understand Warren Buffet’s reasoning for holding more cash now than ever before.
I made out quite well on this AI infrastructure boom, % wise, I mean, that now I have greatly trimmed my positions (letting the rest ride).
For me, it has always been a strategy to be a minimalist and find meaning and joy in the simple things in life. Drawing, hiking, exercise, the simple ability to just have stillness and free time to contemplate (what a luxury in today’s age!).
For that, I can live relatively comfortably on $24k a year. (Crazy I know).
SO, with $100,000 earning 3-4% that’s about a $3,000 “bonus” every year. A brand new car paid completely risk free every 5 years \\\~$15k or however you wanna think about it.
Or $12,000 guaranteed post tax (give or take) on $300,000 sitting in a 3-4% yield vehicle.
I’m still in the market and will always DCA into it, but just having a few years worth of expenses completely liquid is so much more freeing than being overly invested in a market that I thing is LONG OVERDUE for a MASSIVE pullback.
For that, I have to go with my gut. Anyone else ever feel this way?
I’m sure the market will average 10%+ yearly the next 5 years (maybe more) and i’ll miss out on substantial gain, but man, the guaranteed money growing is well worth the peace of mind (for me). Despite inflation. Honestly, I don’t really feel inflation that much anyway, rent has gone up, though not substantially (for me), food, sure, gas, sure, but I have always been able to just budget differently or change habits to beat it, not technically but you know.
Anywho!
Maybe we’ll have that 30+% pullback and i’ll be happy to be sitting on so much dry powdaaah, maybe we won’t, but this works for me.
Love you!
\\\* not looking for personal finance advice just giving me mindset as of current on the market and holding cash!!! \\\*