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This graph was made by the lovely Four Pillar Freedom.
We’ve reached the threshold. My monthly contributions to my investments are almost completely obscured by the market noise. I now add 2% of my current net worth to my investments each month and recent daily fluctuations have been more than that: Down 2.5%, Up 2% etc. I think I’ve reached what a new favorite blogger of mine Four Pillar Freedom describes as the point when the market makes a bigger impact than your contributions.
Usually I happily look at my investments after making a contribution but now I can’t even see it! Instead of being upset about this fact I’m happy for two reasons:
- This market volatility has us at negative for the year right now, which means I’m picking up shares at a discount in this crazy bull market that’s been happening for 9 years (or until now maybe…)
- Most importantly this means that I’ve finally reached a level of net worth and savings where my growth is mostly market increases instead of straight savings. It’s time for that compound interest snowball to begin!
So despite many people saying the sky is falling (-1% YTD = panic?? Hilarious) I am ecstatic to have reached this milestone. It’s when the compound interest charts start tilting up and growing exponentially. I can hardly wait!