Ask Sherry: How much do I invest every month?
You can ask any question using the form here.
How much do you invest every month on average ?
Well “average” is hard to say.
See, when I make money, I save it aside and invest it when I can.
This year for instance, I dropped about $30,000 into the markets, and am planning on putting another $20,000 in by the end of the year.
So, $50,000 total just for this year (net after taxes), which is about $4166.67 a month.
(Maybe more. I have until November to decide because that is the deadline for extending me again. If I get extended, I will plow more money in, maybe another $50,000 for a total of $80,000 this year).
If I was NOT working and NO money was coming in, that money would stay in my account as a buffer until I get my next contract.
Once my next contract started, I would then drop the remaining cash into the market after whatever I have used for living expenses, however much that is.
On average, I put anywhere from $20,000 – $50,000 a year or more into investing.
For Little Bun, I ALWAYS put in at least $2500 a year to get the maximum government match for him. The rest of the excess money stays in a high-interest savings account just in case he will need it for… whatever.. I don’t want to liquidate what I already have invested for him.
Update: I just dropped another $100,000 into the market this week. *shrug* I had the cash so I did it.
I am now stockpiling another bunch of cash to drop it in when the market tanks in a year or so.
Does it depend on whether the market is going down or up?
No. I don’t “time” the market or spend time with that.
I will say that when the market is going down, I tend to plow more money and pinch pennies harder to try and put more than usual into the market, however even when the market is going up, I still put in the same amount.
The real driver is my contract and my income. Whatever I am getting as income, I have to continually plan and keep a buffer for just in case I DO NOT get renewed and I don’t get to make more money. I need a buffer of about $30,000 – $50,000 to live off on until my next gig.
What is your fave book of all time?
This memoir I have to tell you is one of the best works of non-fiction I’ve ever read. So detailed, gripping without being dramatic, a great insight into an alternative lifestyle and a deep look into principles of parenting and upbringing.