This past weekend I spent several hours going through long forgotten papers. Like an old friend I haven’t spoke to in years, the paperwork brought back memories. The papers relating to finances were particularly interesting.
For example, I found the sales receipt for a new 1965 Mustang my grandfather purchased for my step-mother when she graduated from high school. Total cost: $2,200.
Nothing communicates the power of inflation like a 50 year old receipt for a Ford Mustang.
I also found the receipt for an Acura TL I bought for $31,000 in 1999. I financed the purchase over 5 years at 7.5%. Idiot! Fortunately, I sold the car two years later and paid off the debt. My most recent car, purchased in 2011, was used, cost less, and I paid cash.
All of this got me to thinking about how we look at money. We see money from the daily perspective as we go about our lives spending and saving. We see money from a monthly perspective when we think about our budget, 401k contributions, and our income. We even think about money from a yearly perspective, such as our annual salary. But rarely do we think about money from the perspective of decades.
I also provide an update to my own investing. I’m in second place in a stock market game involving a number of other personal finance bloggers. You can check out the standings here. A big thanks to Motif Investing for sponsoring the competition.
As for my individual stocks, I’m lagging the S&P 500 a bit this year, although up considerably since 2012 when I began tracking my performance:
So let’s get to the podcast: