Hi friends,
Lets take a pause so that I can reflect on my game plan in investing.
I'll ask myself a series of questions that would help convey a good idea behind my journey towards financial independence.
As I'm starting to write this, the time is 4.38 PM. It's 30th March 2020 on Monday. Typing from the sofa of my livingroom due to this Restriction Movement Order (RMO).
What do I really want right now?
I want to come out ahead in this recession.
How do I mean by that?
I want to be part owner of a good business that gives out dividends and appreciate in price over time. Buy low, hold, collect dividends, sell high.
Why do I want it?
I want to be ahead in this recession because I see this as the best and rare opportunity for me to build my wealth. The earlier I start, the lower the share price I buy, the better the chances for me to succeed.
How do I plan to do this?
I plan to dollar cost average throughout this recession. Ideally, committing to a weekly purchase but also setting aside some reserve for lump sum capital deployment when share price hits a certain lower limit. The lower the price goes, the bigger the lump sum payment I plan to commit.
Where am I getting the capital?
30% out of my salary and dipping into savings for the small lump sum deployment.
Why do I want to be rich?
I don't want to be financially dependent on other people. I don't want to live paycheck to paycheck. I don't want to owe anyone before getting money. I want to live off of my investments' dividends. I don't want to get taxed because I prefer community donations. I want a passive income.
What will you get out of this?
I will get the peace of mind because I will be stable financially. I will expand my options in terms of careers. I will also expand the activities in life and experience.
In conclusion, this recession is also the best time for me to build a habit of committing to a framework in regards to investment.
That is all. Thanks for reading!
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