Why I Stopped Investing (For Now)

Summary

In this video, the speaker candidly discusses the challenges of maintaining regular investments during financial stress, sharing their personal experience of being unable to invest due to unexpected expenses. They emphasize the importance of having an emergency fund and the value of dollar-cost averaging as a long-term investment strategy. The speaker also highlights the benefits of compounding and the exponential growth potential of continuous investing. They advise viewers not to stress over temporary breaks from investing and to prioritize financial stability before resuming. The message is one of reassurance and practical advice for those facing similar financial dilemmas.

Takeaways

• 😌 It's okay to feel stressed about not having enough money for investments during certain months.
• 💼 The speaker emphasizes the importance of dollar-cost averaging, which they practice by investing in ETFs and cryptocurrency weekly.
• 📈 They document their investment journey transparently, showing the growth of their portfolio over time, such as from $23,000 to $54,000 in a year.
• 💸 The speaker admits to being frugal but is willing to spend on travel experiences and investments without counting the money.
• 🏠 They discuss investing in real estate, mentioning the purchase of an apartment in Lithuania and the associated costs.
• 🌐 They highlight the benefits of diversifying investments, such as having real estate in different parts of the world.
• 🏢 The speaker has left their corporate job and is building their own business, which is currently causing high expenses.
• 🤔 They explain why having a cash reserve is crucial before investing and how they are prioritizing rebuilding their cash reserves over investing at the moment.
• 🚫 The speaker advises against investing at the expense of an emergency fund and living comfortably.
• 🔄 They acknowledge the temporary pause in investing due to current financial commitments but stress the importance of resuming the habit once the situation improves.
• 💪 The message concludes with encouragement to not let a break from investing become a habit and to get back into the routine once financial stability is restored.

Q & A

What is the main topic discussed in the video script?

The main topic is the importance of dollar-cost averaging and continuous investing, even when facing financial challenges.

Why does the speaker advocate for dollar-cost averaging?

The speaker advocates for dollar-cost averaging because it helps build investment habits and allows for the benefits of compounding over time.

What personal financial challenges is the speaker currently facing?

The speaker is facing financial challenges due to leaving a corporate job, starting a new business, buying an apartment, and dealing with high living expenses in Dubai.

How does the speaker suggest handling periods when you can't invest regularly?

The speaker suggests prioritizing building up an emergency fund and not stressing about missing a few months of investing, as life events can sometimes make regular investing difficult.

What is the speaker's current strategy for managing his cash reserves?

The speaker is focusing on reestablishing his cash reserves to cover at least three to six months of expenses before resuming regular investments.

What are the benefits of having an emergency fund according to the speaker?

Having an emergency fund provides financial security in case of unexpected events, like losing a job or facing a medical emergency, and prevents the need to sell investments at a loss.

What analogy does the speaker use to describe the importance of getting back into the investing routine?

The speaker compares resuming regular investing to getting back into a gym routine after missing a few days – it's important to regain momentum and establish good habits.

How does the speaker feel about large, one-time expenses in Dubai?

The speaker acknowledges that large, one-time expenses like annual rent payments are common in Dubai and prefers paying in one go for a better overall deal, despite the immediate financial strain.

What is the speaker's view on investing versus maintaining liquidity during uncertain times?

The speaker believes that maintaining liquidity and having cash reserves is more important during uncertain times than forcing investments, as it provides flexibility and security.

What does the speaker suggest for those who feel down about not being able to invest regularly?

The speaker advises not to be discouraged, to prioritize rebuilding an emergency fund, and to get back into the routine of investing once financial stability is regained.