The transcript states the speaker invested "a few thousand a month" during 2018-2020. (14:26-14:28) The exact amount isn't specified.
This video details the speaker's journey to building a $400,000 net worth by age 28. The speaker emphasizes how leveraging two stock market crashes contributed significantly to their success, highlighting a strategy combining high income, frugal living, and consistent investing, particularly during market downturns. The video aims to illustrate a realistic path to wealth building, emphasizing that it's achievable for "normal people."
High Income & Frugal Living: The speaker maintained a high income while living frugally, maximizing savings for investment. This involved living with roommates, driving an inexpensive car, and minimizing unnecessary expenses.
Strategic Investing During Crashes: The speaker actively invested during the 2020 COVID-19 crash and the 2022 bear market, buying stocks at significantly reduced prices. This proved to be a major factor in their net worth growth.
Tax-Advantaged Accounts: Maximizing tax-advantaged accounts like Roth IRAs and 401(k)s with employer matching was crucial in minimizing tax burdens and maximizing investment growth.
Career Progression & Job Changes: The speaker strategically switched jobs to increase their income, demonstrating that career progression and leveraging job market opportunities are essential components of their financial success.
Long-Term Perspective & Emotional Control: The speaker emphasizes the importance of maintaining a long-term perspective in investing and avoiding emotional reactions during market volatility.
Citations from the transcript regarding the speaker's specific investment choices and approximate purchase prices during market crashes:
2020 COVID-19 Crash:
The transcript lacks precise purchase prices for all investments. The speaker mentions purchasing Q's at 185, Blackstone at 36, and VIG at a low price, but doesn't specify the units (shares, etc.) or the exact dates of purchase. Further, the mention of "401k mutual funds much lower price" lacks specifics regarding fund names or prices. The speaker also states they bought a "mix of individual and ETFs," but doesn't itemize those holdings or their prices.
2022 Bear Market:
The transcript does not offer detailed specifics on investments during the 2022 bear market beyond a general mention of sticking with dividend ETFs and some growth stocks, including "a few big players like e-commerce giants from around the world." (20:38-20:46) No specific names, purchase prices, or quantities are provided.
The speaker mentions several mistakes in the latter part of the video (25:38-26:42):
Poor Cash Management: Leaving money in a checking account without earning yields. The speaker suggests being more strategic in placing cash in higher-yielding accounts.
Risky Stock Investments: Gambling on risky stocks resulted in significant losses. The speaker now prioritizes safer investments.
Delayed HSA Account Opening: Regretting not opening a Health Savings Account (HSA) sooner due to its triple tax benefits.
Not Starting Sooner: Wishing they had started investing even small amounts earlier in their career.
Misplaced Focus on Money: Assuming money alone would bring happiness, when fulfilling work and relationships are equally important.
