I feel all grown up and responsible and stuff! I think I made a good plan and followed it, and here I am with extra cash to put into the market.
Here is my plan that I've been following:
1. Get out of debt! I paid off all my unsecured debt. (1999-2000)
2. Saved a down payment and purchased my home. (2003)
3. Created an "emergency" fund type savings account. This is a passbook account created for unexpected expenses. (2003)
4. Purchased life and health insurance. (2004)
5. Open a traditional IRA, and deposit the full legal amount for tax deducions ($4000.00 for 2005)
6. Any additional money is now being invested in the stock market! (2006)
My next step is to invest in real estate.
I have earned a really good income as a dancer these last 7+ years. I have lived simply and with very few splurges. I do not buy designer anything, and I am a do-it-yourselfer in many things from sewing my own costumes to taking care of my own beauty regimen to projects around the house. To think that it costs $100 or more for a professional hair color (I do it at home for $15 or less). I've been doing my own acrylic nails for years now, saving myself $60 a month in upkeep of nails! With me doing my hair and nails alone I'm saving almost $2000 a year on these services.
Anyway, that is a topic for another thread altogether!
Just curious if I missed anything vital here? I know that the stock market is kind of like risk managed gambling, so I know what I'm getting into on that front. However, if I just spend my money willy-nilly on clothes and stuff, I really won't have a chance to earn any of it back.



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Putting aside a small amount of your overall net worth for higher-risk investing isn't a bad idea. No more than, say, 10%.
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