Every Sunday morning I like to talk about 3 random things that are on my mind.
Sometimes these things are about business…
Sometimes they’re about life…
And sometimes they’re completely off-the-wall and just random stuff floating in my brain.
With that said…
Let’s jump into the first thing on my mind today…
1. Inflation is eating away at your income (more than you think)
I saw a post on Twitter the other day that the actual inflation number in the U.S. is between 8-12% per year.
This is based on something called the “Chapwood Index”.
The Chapwood Index basically looks at price changes of the top 500 items that Americans spend their money on (things like groceries, gas, school supplies, insurance, rent, gym memberships and more)
And based on these items, inflation is somewhere between 8-12% depending on what city you live in.
For example New York in 2019 was 12.1%.
And Dallas was 8.4% in that same year.
These numbers are startling.
Because at this rate, your average person is just losing money every single year.
And if they’re getting a typical 3-5% raise each year, they can’t even keep up with inflation.
People in the U.S. used to be able to support a family with just the dad working in a factory.
That’s no longer possible.
And it has to do with inflation.
The scary thing is that this is only going to get worse.
The government just continues to endlessly print money with no concern for the consequences.
And I don’t see this stopping no matter who is President.
I don’t pretend to know what the solution is.
And I’m not trying to be the bearer of bad news on this Sunday morning…
But it’s a bit nerve-wracking seeing these numbers.
So if you feel like your money is buying less and less every year, this is why…
Alright let’s jump into something a little more positive…
2. Make sure you keep your investing simple
My sister’s husband asked me for some investing advice last year in regards to using Robinhood.
Apparently he had a few friends using it…
And they were making decent money buying individual stocks (something I’m against unless it’s like 5% of your portfolio).
So I sat down and explained to him how index funds work.
And why he and my sister should focus on maxing out their 401k each year.
I explained to him that you’ll beat 95% of investors in the long run by doing this.
And that it’s nearly impossible to beat the market year after year picking stocks (Warren Buffet is about 1 of 3 people who have been able to do it long term)
So unless you’re smarter than Warren Buffet, you probably shouldn’t be picking individual stocks.
Luckily for him, my advice sunk in.
And they’ve been focused on putting money into their 401k this year.
I’m a big believer that your investments have to be simple to work…
I’d rather take more risk in my business and keep my investments simple.
Cause I can control things in my business.
And there’s where my expertise is.
In the market, I’m up against people that live and breathe this shit 24/7.
They have access to info and tools that I’ll never even understand.
That’s why 90% of my portfolio is in index funds.
It’s simple.
And it gives ya a good return.
BTW if you’re confused by investing like I used to be, I’d recommend reading John Bogle’s book called “The Little Book Of Common Sense Investing”.
It’s probably the easiest and most straight forward book to understand how to invest your money.
Well worth the 15 bucks.
Alright, let’s jump to my 3rd random thought this morning…
3. Make sure you have things in your life that aren’t about business
One of my followers on Instagram recently asked me what my favorite podcasts were…
So I told him…
The Bill Simmons podcast (which is all about sports)
And then another one on The Ringer called “The Rewatchables”.
This is a podcast where they recap really good movies that everyone has seen a million times.
The guy who asked me the question was a little surprised that I would “waste my time” on podcasts that weren’t helping me grow.
He thought I’d be into business podcasts…
Or self development…
And I understand where he’s coming from.
I used to think like that.
I used to listen to Tim Ferris everyday to try and learn something new.
But nowadays I have a little different view on this.
The podcasts I listen to, I simply enjoy listening to them.
That’s it.
And it’s perfectly fine to do that.
In fact, I would say it’s essential if you want to be successful long term.
Cause if your only focus is on things like growing your business, personal development and making money, you are probably gonna burn out.
You need to do some things simply because you enjoy them.
And for me, I get joy out of listening to these podcasts.
The same way I get joy out of listening to Howard Stern when I drive to the gym.
I know in our little world, everything is about “growing” and bettering yourself.
But you also need to do things you enjoy.
Even if those things don’t have an ROI.
To me that’s essential for long term happiness.
So there ya go…
Hope this gave ya some good insight.
Cause that’s the 3 random things on my mind this morning.
Enjoy your Sunday…
– Justin
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