Updated: May 21
It is no surprise that a majority of new investors who began investing for the first time during the pandemic have sold all their stocks. People are back to their normal lives, spending more than they invest. Credit card debt has risen back to pre-pandemic levels and folks have emptied their savings accounts. I get it, we're human beings. We panicked, but when things went back to normal, we relaxed and went back to our old habits.
I want to implore you to continue investing. Don't sell your investments. You should rather buy more. In your 20s, 30s, and 40s, you should be growing your hard-earned money. You can be as aggressive as you want because you won't need this money for a while.
If you are in credit card debt, set up a plan to become credit card debt free. Don't rush to pay off your mortgage or student loans. These loans give you tax incentives and lower your income taxes. After you have saved for an emergency fund, and sinking funds, contribute automatically to your Roth and brokerage accounts. You should then take advantage of any opportunities that arise in the stock market.
Stocks will likely go on sale soon, once investors realize the Federal Reserve is serious about reducing inflation with rate hikes. That is when you should pounce and invest more. This is how you fight back and will eventually get out of the rat race or corporate grind.
If you need an accountability group, come join us in the $100,000 portfolio challenge. We are making strides and will soon transition to the $1 million dollar portfolio.