It’s not lookin’ good for those of you who took me up on the bet of a Chipotle burrito in 2030 if my $1,000 I invested was worth more than $2,000. After buying 4 shares of VOO (Vanguard’s ETF that tracks the S&P 500) in April, the stock market went bananas. My $1k has grown to be worth $1,152.98 – up over 15% in a little over two months.
To give you some perspective on how ridiculous this is, let’s say it keeps growing at that rate for the next few years. At roughly 72% growth per year ( (15% / 2.5 months) x 12 months in a year)), my $1,000 would grow to be almost $2,000,000 by 2034… if that happens, I’ll buy everyone who bet me a burrito a Ferrari (sadly, it’s not going to happen, sorry Jyothi).
That said, it does highlight the importance of investing consistently and not selling your investments when the market goes down. Also, if you have any spare cash laying around, the opportunity to buy more stocks in a once-every-10-years market downturn like March 2020 could lead to massive benefits in the future. Hopefully, we will continue to see them as we track this particular $1,000 investment.
Included in that $151 my money has made over the last 2ish months is my first dividend of $5.73 which I received July 2, 2020 (pictured above). This is especially exciting because that dividend is automatically reinvested, so I now have 4.02 shares of VOO instead of 4.00. That extra 0.02 shares will grow and produce dividends of its own, and I’ll be making interest on my interest for years to come. I’m pumped to write a blog post a few years in the future showing how much the dividends have grown.
As I mentioned in the last post, feel free to follow along by investing yourself and watching your own money grow in the coming years! It’s still a great time to invest, and you may have more free time now to get an investment account started if you haven’t already. If you have any questions or if I can be helpful in any way, go ahead and email me at hashtagmoneygoals@gmail.com.
Take care y’all! #MoneyGoals