The S&P 500 was down about 1% last week, but once again, the overall index return doesn’t tell the full picture. As chip makers value fell, the rest of the index improved. This is actually a good thing, as we see broad strength across industries and sectors and less concentration on just the top mega-cap stocks. Another good reason to have a diversified portfolio.
This past week has also been full of reminders for us about possibilities. And how we can position ourselves to make those possibilities happen. About a year and a half ago, I talked about a young couple who were bemoaning the fact that they could not afford a boat. In the same conversation, they mentioned all the restaurants they regularly ate at. They could have the boat; they just wanted to eat out more.
There’s nothing wrong with that. I always say that if the seven-dollar latte brings you joy, buy the latte. And if you’re raising children, working, running between activities and school and work responsibilities, your budget may include a lot more fast casual dining than you’d prefer. That may be the only way you maintain your sanity during that phase in life.
But this past week I was talking with someone who seemed defeated by life. “I’d like to stay at a Ritz Carlton,” he said, “but I can’t. I’d like to give to charity, but I can’t.” In a couple of hours, I heard “I can’t” repeatedly. And he was right. In his mind, he could not do anything he wanted to do. What he failed to see was that the limiting factor was himself.
If travel is important to you, you will find a way to make it happen. Maybe you get a travel credit card to obtain points or miles and upgrades. Set up a savings account and a regular transfer. Every time you are faced with a purchase, consider if it is a want or a need. I want to eat out. Okay, do I eat out, or do I go home, make pasta, and transfer the money I would have spent eating out to the travel fund?
If you want to get out of debt, what are you willing to do? Take a part-time job for the extra income? Have a yard sale or start posting things online for sale? If you want the bigger house, or the first house, want to buy a boat, want to travel? What are you willing to do to make that happen?
It may mean going back to school, to get more training or a new certification. Take the part-time second job or side hustle. Or just look at every purchase you make and ask yourself if that’s the best use of your money.
Your action item this week is to open that savings account and establish an automatic transfer. If you already have one, increase the amount going in by a few dollars.
If you have a question you want answered, email us at info@covingtonalsina.com. Be sure to check out our Facebook page or website to see our upcoming educational events.
CovingtonAlsina is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.