“I am going to keep having fun every day I have left, because there is no other way of life. You just have to decide whether you are a Tigger or an Eeyore.” – Randy Pausch
One thing most people know about me is that I like to have fun. I am constantly telling jokes and laughing. Life is too short feel bad. Therefore, I choose to be happy.
I make sure to always stop and smell the roses and live life to the fullest with the time I have on earth.
I also like the silly things that are all around us like fried Twinkies, s’mores, or drinking Pina coladas and getting caught in the rain. I mean come on what’s life without a little whimsy.
I also like things that have themes.
There are two reasons why I like Taco Tuesdays: 1. the free tacos and; 2. how festive the day is.
What is Taco Tuesday? Taco Tuesday is a custom in many US cities of going out to eat tacos or in some cases select Mexican dishes typically served in a tortilla on Tuesday nights. Restaurants will often offer special prices, for example, “$1 fish tacos every Tuesday night”. Places like California Tortilla even have specials for BOGO (buy one, get one).
You just can’t beat free food and saving money. And whenever I save money, I invest money.
I know lots of folks like to build wealth in real estate, but the problem with that is that you have to sell the home in order to get access to the gains. Even though stocks are the same way, I do like the fact that they involve no maintenance, repairs, or cleaning.
Indexing is also the best form of stocks investing, as they are self-cleansing. Meaning that if company goes out of business the stock is removed from the index and automatically replaced with a company with a stronger balance sheet that is not bankrupt.
You could lose your home to foreclosure, but not index funds. They go on to make money long after other companies have perished and even if you lose or have a decrease in your income. Stocks keep working for you 365/24/7.
Capital gains make me happy.
They don’t stop coming in unless you sell your index fund. So as long as you are invested, the money keeps on rolling in.
Thinking back on the quote at the start of this blog post, I have always felt like I am like Tigger from Winnie the Pooh. Even Tigger likes Tuesdays! He is known for saying have a Tiggerific Tuesday and Happy Tuesday rise and shine, put a smile on your face and love in your heart.
Eeyore, on the other hand, will mention things like he was so upset that he forgot to be happy. Let’s not do that.
I always take some time out to be happy and grateful. I believe in helping my fellow man. That’s one of the reasons I started this blog; to help people improve the quality of their fiscal lives. For example, let’s discuss what capital gains are.
Capital gains are the profits from the sale of an asset — shares of stock, a piece of land, a business — and generally are considered taxable income. How much of these gains are taxed depends on how long you held the asset before selling.
In 2020 the capital gains tax rates are either 0%, 15% or 20% for most assets held for more than a year. Capital gains tax rates on most assets held for less than a year correspond to ordinary income tax brackets (10%, 12%, 22%, 24%, 32%, 35% or 37%). Therefore, you have incentive to invest for the long-term.
The government charges less for capital gains than they do on ordinary income. That is why you must invest because inflation erodes the dollar over time. What cost $1.00 10 years ago, now cost $1.30 today.
If you hold on to a stock for over a year, then you can possibly pay just 15% in taxes on the gain after you sell. In contrast, income taxes are much higher on wages.
This lets you know that America rewards capital not labor.
I even heard rapper and entrepreneur Master P talking about this on a podcast. He said that he realized “product outweighs talent.” You got that right.
A business can keep making money long after a basketball player retires and stops earning those million-dollar paychecks. A shoe deal with Nike can pay you more than the physical hard work you put in on the court over years!
My way of building up my portfolio is to invest. I may not have a shoe deal, but I can own stock in Nike.
Therefore, what I do occasionally is do a BOGO somewhere like a Taco Tuesday and then the next day buy some stock. I call that my Capital Gains Wednesdays.
I try to keep at least $10,000 in my brokerage account just so that at any moment or Wednesday, I can buy stock in any company I want within a certain cap. I may give myself a $2,500 cap for the day or even $25. Doesn’t really matter. The point is to keep me motivated toward my goals and to get in the habit of investing.
I can never say I have no money to invest, if I keep money in my brokerage account at all times.
You should put money in there when times are flush. That way when they aren’t, you can still be purchasing stock no matter what.
This is how I stay happy. I plan and create my own happiness myself.
Now you all go out there and have a Tiggerific Tuesday!!!
